PAIRGAIN INTRODUCES PRODUCTS TO DELIVER HIGH-SPEED DATA AND INTERNET ACCESS
TO THE HOME

Will allow telephone companies to compete with cable modems

TUSTIN, CA --- (January 8, 1996) --- PairGain Technologies, Inc. (NASDAQ:
Pair) today introduced new products that will enable telephone companies
to deliver high-speed data to the home for Internet and on-line service
access, telecommuting, and work-at-home applications, over ordinary
telephone lines using its CopperOptics technology.

The company's Megabit Modem and EtherPhone products make use of the
existing infrastructure, allowing carriers and other access providers to
aggressively compete in the exploding and lucrative residential multimedia
access business. And since these products are available in the near term,
they will enable telephone companies to compete head-to-head with recently
announced cable modem products to be deployed by cable TV companies.

These products will go far beyond the performance of today's low-speed
analog modems and Integrated Services Digital Network (ISDN) technology by
allowing data to be delivered at rates from 320 Kbps to 6 Mbps over
ordinary telephone lines.

"With these offerings, PairGain is addressing one of the most significant
challenges facing telephone companies today - providing greater bandwidth
to meet the increasing demand of their residential customers for data and
video applications," stated Howard Flagg, PairGain's president. "Now
telephone companies are able to make a quick entry into this market by
bringing megabit rate data services to their customers' doors", he added.

The foundation for PairGain's high-speed residential data access strategy
is based on its market leading High-bit-rate Digital Subscriber Line
(HDSL) technology which will be complemented by a line of Asymmetric
Digital Subscriber Line (ADSL) products available later this year.

The company plans to roll out its residential access products in a phased
approach, with its first offerings available immediately, and follow-on
products shipping throughout the year and beyond.

LEADING THE MARKET WITH T1 TO THE REMOTE OFFICE & HOME OFFICE

PairGain has been instrumental in the growth of the remote office and home
office market by delivering the industry's most comprehensive line of
HDSL-based transmission systems to telephone companies and private
organizations worldwide. The company's recently released HiGain
single-pair HLU-611 and HRU-612 carrier products will allow carriers to
deploy full-duplex, fiber optic quality T1 (1.544 Mbps) service on one
pair of copper wire, ideal for residential business applications when
quick installation, low cost and high quality are required. The company is
also announcing availability of its HiGain HLU-D41 fractional T1 product.
The HLU-D41 enables fractional T1 service and is bandwidth selectable in
64 Kbps increments to 768 Kbps over a single- pair of unconditioned copper
wire. These products are available immediately and are priced from $600 to
$900 per unit.

PairGain has also been successful in penetrating a number of vertical
markets with its Campus systems. The company has begun shipping a remote
SNMP-managed Ethernet bridging product, Campus- REX, that enables low-
cost, transparent local area network (LAN) connectivity over two pairs of
unconditioned copper wire at distances of up to five miles and at rates as
high as 2 Mbps. A version of the product that operates over significantly
longer distances at 384 Kbps full-duplex rates is also available.

PairGain's first Megabit Modem product, a single-pair version of its
Campus-REX product, will be available in several months. This product has
been adapted for the work-at-home market and will deliver full-duplex 768
Kbps bandwidth over a single pair of copper wire at distances of up to
five miles. It is a modem-like device with a 10BaseT port to connect to a
PC or LAN and a network port for an HDSL connection to the local central
office.

PairGain systems have been shipping for over three years and are now being
installed in all of the major telephone companies in the United States and
Canada. To date, PairGain has shipped over 200,000 HDSL units and captured
over 75% market share.

PairGain expects to announce the initiation of a Megabit Modem field trial
early this year.

MEGABIT DATA TO THE HOME

PairGain will deliver a number of strategic products for use by telephone
companies to provide high-bandwidth data pipes to home users for Internet
access and work-at-home applications, all over ordinary copper telephone
wire. The company's first EtherPhone product will deliver Ethernet
connectivity and telephone service (POTS) over a single pair of copper
wires for residential applications. This carrier-deployed device will
feature an analog voice channel, and a 10BaseT port, delivering 704 Kbps
full-duplex data on one compact unit for the home. EtherPhone will allow
consumers with phone service to be on-line to the Internet and conduct a
voice conversation simultaneously, all over one telephone line. Likewise,
telecommuters will have concurrent access to their corporate voice and
data networks, allowing a simultaneous connection to their headquarters
PBX and LAN. This product will be available in the first half of 1996.
Soon thereafter, a second EtherPhone product will be introduced, operating
over 320 Kbps full- duplex rates over longer distances, allowing for the
connection of remotely located end users beyond the telephone company's
typical carrier serving areas (CSA).

BROAD DEPLOYMENT MEGABIT MODEMS TO THE HOME

In late 1996 PairGain will deliver Megabit Modem products that will enable
broad deployment, higher bandwidth, longer wireline reach and lower price
points than previously introduced products. These products will provide
the capability of using existing telephone company platforms, and will be
designed to support the next-generation of bandwidth intensive
applications, including video-on-demand. The company's Megabit Modems will
incorporate an intelligent Ethernet bridge, delivering 1.5 Mbps downstream
bandwidth from a central office to the customer over a single pair of
local loop wiring. A 6 Mbps Megabit Modem will also be introduced.

PRODUCT PRICING

Pricing of PairGain's Megabit Modem and EtherPhone products will start at
$995.

PairGain designs, manufactures and markets systems that allow
telecommunications carriers and organizations with private networks to
more efficiently and quickly deploy high-speed digital services to end
users over the existing infrastructure of unconditioned copper wires.
PairGain's HiGain and Campus systems are marketed under the trademark,
CopperOptics, indicating their ability to provide fiber quality
transmission over the last mile in both public and private networks.
 
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