Paradyne and Network Telephone Demonstrate Paradyne's New IP Voice Gateway; New SIP, MGCP and DOCSIS Solutions Available for Customer Trials.

Business Editors/High-Tech Writers

ATLANTA--(BUSINESS WIRE)--June 4, 2003

Paradyne Networks, Inc. (Nasdaq:PDYN), a leading provider of broadband voice, data and video network access solutions, today announced the availability of its CPX-1000MG Media Gateway with VoIP support. Paradyne is demonstrating the CPX-1000MG June 4 and 5 at the Omni Hotel in Atlanta.

The CPX-1000MG solution is a multiservice media gateway for carriers, supporting VoIP, ATM, and TDM in the same chassis along with SIP, MGCP, DOCSIS/NCS, GR303, V5.2, and AAL2 protocols. Existing Paradyne customers can upgrade their CPX-1000 gateways by ordering the new 10/100 IP card and software.

With the addition of the new 10/100 Ethernet interface and new protocol software, CPX-1000MG customers can take advantage of softswitch networks to control either VoIP or VoATM access networks, or use class 5 switches to control IADs over a pure IP access network with MGCP.

Paradyne will demo VoIP to PSTN trunking using the Atlanta switch office of Network Telephone, a Voice over Broadband provider to more than 13,000 business customers in the Southeast U.S.

"We look forward to working with Paradyne as they create new broadband voice solutions," said Mark Miller, Executive Vice President of Engineering at Network Telephone. "Paradyne's gateways have proven to be robust in dynamic T1 and VoDSL deployments, and adding VoIP and multiprotocol support enhances the value of the platform."

"This week's demonstration and announcement of Paradyne's VoIP media gateway solution is the culmination of nearly 6 months of customer trials of SIP and MGCP in both Europe and North America. Paradyne is leveraging its history of broadband voice leadership through last year's Jetstream(R) product line acquisition to bring these new IP voice solutions to our carrier customers," said Ken Hood, VP and GM, Broadband Voice Solutions, Paradyne.

About Paradyne

Paradyne is a leading developer of carrier-class, high-speed network access solutions for broadband voice, data and video. A recognized market leader in digital subscriber line (DSL), service level management (SLM), and Broadband Voice and Media Gateway solutions, Paradyne markets its award-winning GranDSLAM(R) and BitStorm(TM) DSL systems, ReachDSL(TM) and EtherLoop(R) products, Jetstream(R) Media Gateway systems and iMarc(TM)/FrameSaver(R) Service Level Management systems to service providers and business customers worldwide. More information may be obtained by visiting http://www.paradyne.com or by calling [phone].

About Network Telephone

Network Telephone serves more than 13,000 small business customers -- more than 120,000 access lines -- with phone and Internet access and services. The company employs more than 500 at its headquarters in Pensacola, Fla. and at regional sales offices located in Alabama, Louisiana, Mississippi, Florida, Georgia, Kentucky, North Carolina, and Tennessee. For more information about Network Telephone, visit the company's Web site at http://www.networktelephone.net.

Information about Forward-Looking Statements:

This press release contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements are made pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations and beliefs as well as on assumptions made by, and information currently available to, management. Among the factors that could cause actual future events to differ materially include: the uncertainty regarding the acceptance of new telecommunications services based on DSL technology; reduction or discontinuation of purchase of our products by NSPs; the failure of NSPs to incorporate our products into their infrastructure; the possibility that Paradyne's competitors may develop competing products that are superior in terms of quality, cost or both. For a detailed discussion of other risk factors that could affect Paradyne's business, please refer to the risks identified in Paradyne's Current Report on Form 10-K/A, dated March 24, 2003, and in Paradyne's other filings with the Securities and Exchange Commission.

Editors Note:

BitStorm, ReachDSL, iMarc, and ReachDSL are trademarks of Paradyne Corporation. FrameSaver, GranDSLAM, Jetstream, EtherLoop, Hotwire, Paradyne, and the Paradyne are registered trademarks of Paradyne Corporation. All other service marks and trademarks are the property of their respective owners.