Og Vodafone, Iceland's Second Largest Broadband Services Provider, Builds New IP-Based Network with Paradyne's 8000 Series BLCs

Paradyne (NASDAQ:PDYN), a leading provider of triple
play broadband loop carriers (BLCs) and Ethernet access equipment,
today announced an expanded relationship with Og Vodafone, marking the
first BLC deployment in Iceland.
   In a move to offer additional value-added triple play services, 
Og Vodafone has elected to continue with the deployment of Paradyne's
multi-service 8000 series platform as they transform their current 
ATM network to a more advanced IP-based network. As part of the 
agreement, Paradyne will provide its ADSL2+ cards for the 8000 series 
BLCs. Triple play services including IPTV, Internet, and VoIP will be
available to more than 5,000 homes in the local area by the end of
2005.
   "Og Vodafone is excited to have the ability to offer our customers
a variety of broadband solutions using Paradyne's multi-service
platforms," said Orn Orrason, vice president of networks, Og Vodafone.
"We have used their 8000 series BLC chassis for years now and they
continue to show proven strength throughout the access network. And
more importantly, our previous investment in the 8000 series platforms
will be preserved since ATM is easily converted to IP with only a
simple change of the SCP card."
   "Paradyne is committed to helping service providers like Og
Vodafone stay competitive. This means having the ability to profitably
offer IP-based triple play solutions that can deliver advanced data
and video services," said Ken Hood, vice president of product
management and marketing, Paradyne. "We are very pleased to be able to
continue our relationship with Og Vodafone and play a part in their
next-generation network deployments."
   Paradyne's 8000 Series Broadband Loop Carrier (BLC) is a
standards-based, scalable, high-capacity BLC that utilizes the latest
switching fabric, enabling service providers to offer voice, video,
and data services from a single platform. The 8000 series' flexibility
lets you meet market demand for multiple services, providing
significant revenue generation.

   About Paradyne

   Paradyne provides a broad family of IP-based broadband access
solutions, including BLCs, 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-Q, 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.