TUSTIN, Calif.--(BUSINESS WIRE)--June 3, 1998--PairGain
Technologies Inc. (NASDAQ:PAIR) today issued a response to the many
questions received from its customers, shareholders and the media
about Sprint's future Integrated On-Demand Network (ION), stating that
Sprint's plans to accelerate high-bandwidth deployment are viewed as
a very positive development for the Company.

Impact on Current Business

     RBOCs, competitive local exchange carriers (CLECs), independent
telephone companies and Internet Service Providers (ISPs) will
continue to deploy DSL solutions to provide high-speed services to
their residential and business customers.  The Sprint announcement is
perceived positively by PairGain as it should spur the incumbent
service providers to react more quickly in light of the impending
competitive threat to their existing customer bases.  PairGain is
poised to address the immediate needs of its service provider
customers with an extensive line of megabit access solutions which are
network-proven and available for delivery today.
     Sprint's plans will have a positive impact on the T1 market.  T1
lines will continue to be supplied by regional Bell operating
companies (RBOCs), independent telephone companies and other service
providers.  PairGain is the dominant supplier of DSL-based T1 access
solutions to these service providers.  In discussions with Sprint they
confirmed that PairGain equipment was expected to remain a significant
element of the local loop provisioning of services.
     Sprint's plans will not eliminate the current (and growing)
requirement for additional phonelines to homes and businesses.
PairGain's PG-Flex(TM) and PG-Plus(TM) subscriber carrier solutions
have been widely embraced by the nation's largest telephone companies
to fulfill these requirements.
     Sprint's plans will not address the requirements of private
network owners to interconnect their remote sites in campus area
network environments.  PairGain's Campus products are widely used
today by hundreds of organizations worldwide to extend backbone
networks and provide for LAN interconnectivity.

Impact on Future Business

     PairGain expects that other telephone companies will soon adopt
ATM strategies for integrating voice and data traffic, particularly in
markets where they intend to operate as CLECs themselves. These
technologies will level the playing field in most regions, giving
CLECs access to a wide base of customers. PairGain believes that
except in the case of dense metropolitan areas, the local loop, or
"last mile", will remain the province of the incumbent LEC, who will
utilize fiber as well as xDSL access technologies to connect customers
to their selected service provider. Sprint has confirmed that xDSL
transmission will be the primary methodology for delivering the high
bandwidth required by the new services for small and medium size
customers.
     PairGain, like Sprint, has long recognized the trend towards
high-bandwidth integration of voice, data and video from the desktop.
In response, the company acquired Avidia Systems, an ATM company, in
February of 1997. Since that time, PairGain has been aggressively
developing ATM-based multi-service access platforms and customer
premise devices to serve this market.

About PairGain Technologies

     PairGain Technologies Inc. is the market leader in the design,
manufacture and marketing of advanced xDSL communications systems.
PairGain's products allow network service providers and organizations
with private networks to rapidly deploy high-speed data, video and
voice services to end users over the existing infrastructure of copper
telephone lines.
     PairGain's HiGain(R),PG-Plus(TM), PG-Flex(TM), Megabit Access and
campus area network products are marketed under the trademark
CopperOptics(R), indicating their ability to provide fiber optic
quality transmission over the "last mile" in both public and private
networks worldwide. Additional information about the company is
available at www.pairgain.com.
     Except for the historical information contained herein, the
matters discussed in this announcement are forward-looking statements
which involve risks and uncertainties, including but not limited to
economic, competitive, governmental and technological factors
affecting the company's operations, markets, products, services and
prices and other factors discussed in the company's filings with the
Securities and Exchange Commission.