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Paradyne Announces Three New ReachDSL Additions to the GranDSLAM Product Family

The New ReachDSL Products Bring Broadband Access to Markets Previously Unreachable by Traditional DSL Services at Speeds Up to 2.2Mbps and Compatibility with ADSL/R

LARGO, Florida - May 6, 2002
Paradyne Networks, Inc (NASDAQ:PDYN), a worldwide provider of digital subscriber line (DSL) and service level management (SLM) equipment solutions, today introduced the GranDSLAM™ 4200 Stackable DSLAM - a low-cost, compact one rack unit (1U) DSLAM with extremely low power requirements making it a perfect complement to ADSL in central offices, or tight spaces, such as remote terminals or neighborhood cabinets. Paradyne is also introducing the 8355 ATM ReachDSL™ 24-port Line Card for use in the GranDSLAM 8820 chassis, and the new 6390 ReachDSL Bridged Endpoint. These new products incorporate Paradyne's new ReachDSL 2.2 technology, giving service providers a competitive advantage to connect more customers with consistent delivery, no matter what the copper conditions, at speeds up to 2.2Mbps.

"We are thrilled with the advantages we are seeing by installing the ReachDSL solution," said Mike Nash, Senior Vice President of CT Communications, an incumbent local exchange carrier (ILEC) serving the Carolinas. "With ReachDSL, we are able reduce our operational costs and extend services to customers who would otherwise not be able to receive DSL. With the compact form factor, the GranDSLAM 4200 will help us extend our services even further by allowing us to deploy in remote cabinets."

Paradyne designed the GranDSLAM 4200 DSLAM to economically complement existing ADSL deployments, since many ILECs and PTTs already have significant investments in those platforms. As a freestanding DSLAM that is compact and stackable, the GranDSLAM 4200 DSLAM slides in the rack adjacent to existing platforms to economically expand the addressable market in the Customer Serving Area (CSA). The GranDSLAM 4200 DSLAM can be subtended from DSLAMs that support T1/E1 subtending, further expanding money-saving capabilities by maximizing use of the existing uplinks. The GranDSLAM 4200 DSLAM is also environmentally hardened, making it ideal for deployment in remote terminals or cabinets by the side of the road without the need to upgrade the cooling capabilities of the cabinet. This new DSLAM is perfect for areas where DSLAM installations could not previously be cost-justified, such as rural/small town markets, low take rate urban areas, or neighborhoods with older remote cabinets or older digital loop carriers (DLCs) that cannot easily be upgraded to DSL. Each GranDSLAM 4200 DSLAM provides up to 24 ports of ReachDSL connectivity, and up to 384 ports when used in the stack configuration.

"The GranDSLAM 4200 complements our existing line of DSLAMs, providing our customers with the ability to cost effectively offer broadband DSL services where they could not offer them before," said Sean Belanger, President and CEO of Paradyne. "These new products also use our recently announced ReachDSL 2.2 technology, which provides compatibility with the new ADSL/R™ CPE devices and virtually future-proofs the carrier's investment."

The GranDSLAM 4200 DSLAM and 8355 ReachDSL line cards operate with Paradyne's 6390 ReachDSL bridged endpoints. In addition, the GranDSLAM 4200 DSLAM and 8355 ReachDSL line cards will work with third party endpoints using the new ADSL/R chipset, being jointly developed with Alcatel Microelectronics. Together, ReachDSL and ADSL/R technology can be used to overcome typical DSL deployment obstacles such as poor copper conditions, long or challenged loops, interference, and in-premises wiring problems, making it possible to finally deliver DSL everywhere.

About Paradyne

Paradyne is a leading developer of carrier-class, high-speed network access solutions. A recognized market leader in digital subscriber line (DSL) and service level management (SLM) solutions, Paradyne markets its award-winning GranDSLAM and BitStorm™ DSL systems, ReachDSL™ and EtherLoop™ products, and FrameSaver® Service Level Management systems to service providers and business customers worldwide. More than 20,100 GranDSLAM DSL Access Multiplexers have been deployed around the world. Paradyne has shipped over 296,000 ports of its unique ReachDSL solution, giving carriers the ability to deliver broadband over almost any copper line, even those that are very long or severely impaired. Paradyne's SLM solutions have been deployed into mission-critical enterprise networks by the leading carriers, including AT&T, Bell Canada, Broadwing, SBC, Sprint, Verizon, and WorldCom.

Paradyne is headquartered in the Tampa Bay area. More information is available by calling 1-800-PARADYNE (U.S. and Canada), 1-727-530-8623 or visiting www.paradyne.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 April 1, 2002, and in Paradyne's other filings with the Securities and Exchange Commission.

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