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

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 [phone].

   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.