August 27, 2003

Paragon Networks Achieves Record Profitability

Brookfield, CT, - As a positive sign of things to come, Paragon Networks' management team recently announced the company has achieved record profitability for its fourth quarter in fiscal year 2003, ending June 2003. CEO & President Russ Hawkins explained, "Reflecting the industry's recent optimism and future outlook, Paragon Networks experienced the highest sales in June 2003 compared to any previous month's sales for the fiscal year. June's record sales combined with our record profitability for the most recent quarter is a confirmation of our efforts in the last year to meet the customer's need while reducing overhead."

With customers in 27 countries represented by 175 different telecommunications providers, Paragon Networks is well positioned to meet the challenges in an uncertain economy. Reini Florin, Executive Vice President of Sales, Marketing & Customer Support commented, "Paragon's recent success validates the significant value proposition we provide to cellular, PCS, and other service providers around the world."
Sales in the last quarter consisted of Paragon Networks' BROADway®, MASTERseries, CELLlink, and MASTERview product families. Paragon Networks will soon announce the release of additional products in the BROADway product line: the FREEway DS3 point-to-point microwave radio, and the BROADway 1000 M13 multiplexer (a smaller version of the standard BROADway system).

Paragon Networks is a privately held, venture-funded innovator of transmission and networking solutions for mobile and fixed communications companies. The company has been providing products to wireless service providers since 1996. Today, nine out of the top ten (based on number of subscribers) US wireless service providers are customers of Paragon Networks. Highlighting the company's long-term, consistent growth, Paragon Networks was ranked one of the fastest growing technology companies in the Deloitte & Touche Fast 50 for Connecticut for the past three years, and the latest Deloitte & Touche North America Fast 500.

About Paragon Networks
Paragon Networks manufactures products that, using either wireline, 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 Verizon, Cingular, Sprint PCS, Telcel, Nextel, and others around the world utilize Paragon Networks' products and technologies. Designed specifically for wireless service providers (WSP), Paragon Networks' suite of backhaul solutions enable the rapid deployment of voice and data services and provide a migration path to 3rd Generation networks.

Paragon Networks is a privately held company with ownership shared between leading venture capital companies and its employees. Headquartered in Brookfield, Connecticut, Paragon Networks distributes its products worldwide through a network of both direct and indirect channels.

For more information, visit Paragon Networks' web site at www.paragon-networks.com or contact:

Lisa DeVoto
Marketing Communications Manager
Paragon Networks
Telephone: (203) 740-3650
ldevoto@paragon-networks.com

Mark Agovino
Product Marketing Director
Paragon Networks
Telephone: (203) 740-3650
magovino@paragon-networks.com