Video over DSL Achieves Major Milestone With Test Results From Cisco's Customer Proof-of-Concept Lab.

Business Editors/High-Tech Writers

TelcoTV Conference Expo 2003

LAS VEGAS--(BUSINESS WIRE)--Nov. 13, 2003

Test Plan Commissioned by CC&I Engineering Proves

Smooth Video Over IP is Ready for Prime Time

Large-scale roll outs of video entertainment over DSL advanced earlier this month beyond the conceptual stage as CC&I Engineering, Inc. and Cisco Systems teamed to build one of the largest Internet Protocol (IP) test beds ever to transport video from a digital headend over a fiber-optic ring, delivering excellent quality digital video service to residential customers via ordinary telephone lines. The breakthrough test was conducted at Cisco's Customer Proof-of-Concept Lab (CPOC) in San Jose, Calif., using Paradyne's (Nasdaq:PDYN) latest IP-based DSL access multiplexer (DSLAM) to serve the critical connection and processing point between the fiber optic network and the local telephone company's copper wire lines.

"This proof-of-concept clearly demonstrates that Gigabit Ethernet (GigE) over Cisco's Catalyst(R) Switches in the core of the network and Paradyne's compact 1U video-ready DSLAM for last-mile connections to the customer are ready for prime time," said Gregory Rise, P.E., CEO and vice president of CC&I, which commissioned the test. "Thanks to Cisco's lab, CC&I was able to replicate the largest network we are currently recommending to our independent telephone company clients, and the result was excellent digital video service to the consumer's television set over the twisted pair copper plant with quality previously only available from traditional cable or over complex, cost-prohibitive, proprietary equipment."

CC&I specializes in telecommunications network design and implementation, serving independent telephone companies that provide voice, data, and video services to households and businesses throughout the United States. Telephone companies have turned to CC&I for over 50 years to design complex network infrastructures, and they have relied on CC&I's recommendations that the selected equipment vendors' products will meet their requirements when deployed for actual service.

The CPOC lab tests showed that Paradyne's compact (1U) GranDSLAM(R) 4200IP maintains excellent video quality even when the combined multicast video and best-effort Internet traffic offered to the network was at 185% of capacity. In addition to measuring processing capability, the network was tested for jitter - a critical signal synchronization condition - that was shown to be less than 1 millisecond, nearly 50 times better than CC&I's design objective for the network.

Besides video over DSL and typical Internet traffic, testing showed that CC&I's clients could successfully deploy Paradyne's GranDSLAM 4200IP and the Cisco switches for other value-added services such as Voice over IP (VoIP) and transparent LAN services (TLS).

Paradyne, a leading provider of broadband voice, data and video network access solutions, recently introduced the GranDSLAM 4200IP for general availability and has already shipped over 690 of the IP-based DSLAMs to more than 70 customers in 12 countries. The GranDSLAM 4200IP complements Paradyne's extensive DSL infrastructure product line that has been in use by network operators since 1996.

"We are extremely pleased with the success of the GranDSLAM 4200IP," said Sean Belanger, CEO of Paradyne. "CC&I's proof-of-concept testing validates the hard work and dedication of our engineering and manufacturing team to open new markets for our valued independent telephone company customers using open standards to ensure lower costs."

Paradyne is demonstrating video over the GranDSLAM 4200IP Nov. 13 - 14 at the 2003 Telco TV Conference and Expo in Las Vegas, booth number 109.

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 and BitStorm(TM) DSL systems, ReachDSL and EtherLoop(TM) products, Jetstream(TM) Media Gateway systems and iMarc/FrameSaver 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 CC&I

CC&I Engineering, Inc. is a leading engineering firm specializing in switched digital video and advanced IP networks deploying triple play services. CC&I has been providing engineering and consulting services to ILECs for over fifty years, and for twenty years to their affiliated companies that provide video services. CC&I has been helping clients successfully provide triple play services for more than seven years using HFC, FTTH, VDSL, and now ADSL technologies.

CC&I corporate offices are located in Perham, Minnesota and a branch office is located in the Minneapolis area. More information about CC&I and the services they offer can be requested from [e-mail] or by visiting http://www.cci-eng.com.

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 whether Paradyne and Alcatel will ultimately be successful in their efforts to jointly develop and produce a new generation ADSL chipset in a timely manner or at all; the risk that any jointly developed products will not achieve marketplace acceptance, result in revenues for Paradyne or otherwise yield the desired financial benefit to Paradyne; the possibility that Paradyne's competitors may develop competing products that are superior in terms of quality, cost or both; and the inherent risks and uncertainties regarding a development relationship where the success of the relationship depends on the performance and cooperation of the other party. 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, dated March 20, 2003, and in Paradyne's other filings with the Securities and Exchange Commission.

Editor's Note: Paradyne, the Paradyne logo and GranDSLAM are registered trademarks of Paradyne Corporation. Cisco and Catalyst are registered trademarks of Cisco Systems.