Ditech Down, Altamar OutDitech Down, Altamar Out

MOUNTAIN VIEW, Calif. -- Ditech Communications Corporation (Nasdaq: DITC) reported results for its fourth quarter and its fiscal year ended April 30, 2003. Revenues for the fourth quarter ended April 30, 2003 were $12.0 million, down 2% from revenues of $12.3 million in the prior quarter and up 24% from revenues of $9.7 million in the same quarter in the prior fiscal year. Ditech Communications closed its 2003 fiscal year with revenue of $47.4 million, up 14% from revenues of $41.4 million from the previous year.

Ditech today also announced that it is actively seeking to sell its Altamar Networks optical business unit. Ditech will continue to fully support its existing product delivery and service agreements throughout this interim phase.

As a result of the decision to exit its optical business, Ditech will implement a restructuring of company operations and workforce in its Mountain View headquarters facility and it will completely shutdown its facilities in the UK and Australia, which were supporting Altamar Networks’ optical research activities. Among these changes will be a workforce reduction over the next sixty days.

Ditech Communications Corp.

Altamar Networks Inc.