Alcom Launches First IPTV over DSL Service in Finland Using Paradyne's Broadband Access Solutions

Business Wire, June 13, 2005

LARGO, Fla. -- Paradyne (NASDAQ:PDYN), a leading provider of triple play broadband loop carriers (BLCs) and Ethernet access equipment, today announced that Alands Datakommunikation (Alcom), the primary DSL provider for the Aland Islands has recently launched Finland's first commercial IPTV over DSL service.

Alcom selected Paradyne as their DSL vendor in 2003 and deployed Paradyne's 4200IP DSLAM, one of the industry's first ADSL2 and ADSL2 products, throughout their network initially for the delivery of data services and video on demand (VoD). Alcom is currently offering between 20 to 50 IPTV channels to around 1,000 business/residential subscribers. Their rollout plans aim to cover over 70 percent of the islands' population over the next three years.

"We believe this industry-leading DSL solution from Paradyne has further strengthened our position in the marketplace while at the same time allowing us to develop new revenue generating services such as IPTV," said Conny Rosenberg, CEO of Alcom. "Paradyne's 4200IP has already demonstrated its value helping us deliver VoD and high speed Internet access over our copper infrastructure, we feel very confident we will experience the same success with our new IPTV service," Rosenberg concluded.

"There is no doubt that the `hot area' for DSL technology at the moment is that of IPTV or triple play solutions and Alcom is a great example of how a carrier can leverage Paradyne's superior solutions in this space," said Keith Hoult, managing director EMEA, Paradyne. "We have enjoyed a very strong relationship with Alcom and they are now reaping the benefits of our focus on optimizing our DSL technology for this most exciting marketplace."

About Alands Datakommunikation ab

Alands Datakommunikation AB (Alcom) supplies Broadband Internet access and related services to residential and business customers on the Aland islands, as well as to ISPs in neighboring regions. Being an early adopter of new technology, Alcom was one of the first ISPs in Scandinavia to offer residential Internet access through DSL. The DSL network, together with the regional fibre optic network, provides an infrastructure for future Broadband services such as video-on-demand and broadcast video. For more information, see http://www.alcom.aland.fi/

About Paradyne

Paradyne provides a broad family of IP-based Broadband Access solutions, including BLCs, MSANs, DSLAMs, Ethernet in the First Mile bonded solutions, IADs, and CPE. Paradyne's products support both residential triple play solutions and business class bonded SHDSL, ADSL2 , T1/E1, and DS3 bonded solutions for LAN extension and cell site data backhaul applications.

Paradyne's solutions are designed to enhance carrier revenue streams with full support for Multimedia Traffic Management (MTM) and to lower carrier operational expenses through Operational Intelligence (OpIQ).

More information may be obtained by visiting http://www.paradyne.com or by calling 1-727-530-8623.

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, dated March 16, 2005 and in Paradyne's other filings with the Securities and Exchange Commission.

Editors Note: Paradyne and the Paradyne Logo are registered trademarks of Paradyne Corporation.