BOULDER, Colo. -- Carrier Access Corporation (Nasdaq:CACS), a leading provider of broadband access and service delivery platforms for both wireline and wireless communications carriers, today announced a definitive agreement to acquire privately held Paragon Networks International, Inc., a leading provider of wireless transport solutions to mobile wireless operators worldwide.

Paragon's MASTERseries and BROADway products, which have over 100,000 ports deployed in 25 countries, will enhance Carrier Access' wireless product portfolio, which includes the Adit(R) and Axxius(TM) products, creating a leadership position in the wireless data transport solutions market.

Carrier Access is acquiring all of the capital stock of Paragon Networks in a primarily stock transaction that will be accounted for under the purchase method of accounting. The acquisition has been approved by the board of directors of each company and is subject to customary closing conditions. Carrier Access expects the acquisition to close in the current quarter. The acquisition is anticipated to be accretive to earnings in the first quarter of 2004.

"As demand for wireless data proliferates through content-rich applications such as music, games and video images, wireless operators around the world are demanding increasingly sophisticated access technologies and products. This demand is driving a rapid expansion of global wireless communications infrastructures. We believe the combination of Carrier Access and Paragon will provide our combined global customer base with the depth and breadth of products and technologies to address continued subscriber growth and increasing consumer demand for media-rich services," said Roger Koenig, chief executive officer, Carrier Access.

Paragon's products focus on end-to-end cell site access and hub site aggregation, providing port capacities from DS-0 through OC-3 and a full range of functionality including SONET / SDH Add-Drop Multiplexing, Digital Cross Connect, and IP routing capability. Carrier Access' Axxius 800 and Adit 600 products optimize bandwidth efficiency for multiple T1s, E1s and DS3s, and enable IP data service integration and remote management using flexible application service modules. The combined product portfolios offer the widest range of wireless transport access products supported by a single manufacturer.

"We believe that Carrier Access' industry leadership position, strong customer focus, and commitment to technological excellence will provide the ideal combination to bring the benefits of our product solutions to more customers than ever before," said Russ Hawkins, chief executive officer, Paragon Networks. "Paragon is enthusiastically entering this new relationship and welcomes the opportunity to contribute to Carrier Access' strategic direction."

Carrier Access Corp.

Paragon Networks International