With Final Numbers in for 2000 Paragon Networks Enjoys Explosive Growth.

Business Editors

BROOKFIELD, Conn.--(BUSINESS WIRE)--Feb. 21, 2001

As the books were closed on calendar year 2000 for Paragon Networks, President and CEO Russ Hawkins declared: "In the year just ended, the Company experienced our best 12-month period in our history. Record growth was seen in revenues, number of new customers, number of unique installed accounts, and number of countries where our equipment is being used. These increases allowed us to expand our workforce to record numbers as well. We added considerable talent across the full range of disciplines to prepare for what we see as another record year in 2001."

Revenues in 2000 outpaced the prior year by approximately 400 percent, including a record one-day shipment of approximately $3.0 million of equipment in the MASTERseries product family. The Company grew its installed base of new customers by 114 percent in 2000 as compared to the year before and Paragon equipment is now installed in 22 different countries around the world. Reini Florin, Senior Vice President of Sales, Marketing and Customer Support commented, "Paragon's success this year validates the significant value proposition we provide to cellular, PCS and other service providers around the world".

Sales in 2000 consisted of the Company's MASTERseries, CELLlink and MASTERview product families, which will soon be joined by the highly anticipated BROADway(TM) platform. BROADway(TM), which will be officially launched at the end of March, is a broadband network access switch designed to provide wireless and network service providers with better ways to deploy, manage and scale voice and data services in their networks.

The Company, which is a privately held, venture-funded innovator of transmission and networking solutions for mobile and fixed communications companies, received its first round of venture capital in 1993 and began shipping products to wireless service providers (WSPs) in 1996. Today it counts nine of the top ten (based on number of subscribers) U.S. WSPs among its more than 150 global customers.

About Paragon Networks International: Paragon Networks manufactures products that, using either wire line, wireless, or optical transmission facilities, provide voice and data service connectivity, performance monitoring, compression, aggregation, layer 3 routing, quality of service filtering, and protection switching of both client and operations support systems traffic. Leading global wireless service providers such as Cingular Wireless, Verizon, AT&T Wireless, Sprint, Nextel and others around the world utilize Paragon's products and technologies. Designed primarily for Wireless Service Providers (WSP), Paragon's products enable the rapid deployment of voice and data services, while helping WSPs effectively utilize their backhaul networks-a major source of operations costs for most providers.

Paragon is a privately held company with ownership shared between leading venture capital companies and its employees. Headquartered in Brookfield Connecticut, Paragon distributes its products worldwide through a network of both direct and indirect channels. For more information, visit Paragon Networks' web site at http://www.paragon-networks.com/.

Some of the statements contained herein not based on historical facts are forward-looking subject to a number of risks and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties include, but are not limited to economic, competitive, governmental, and technological factors affecting the Company's operation, markets, and profitability.