Ditech Communications Receives Communications Solutions™ Magazine's 'Product of the Year' Award for 2004

Quad Voice Processor™ Honored for Outstanding Innovation

Mountain View, Calif., July 20 -- Ditech Communications Corporation, (Nasdaq: DITC), a leader in the development of voice processing systems for communications networks, announced today that Technology Marketing Corporation (TMC®)'s Communications Solutions magazine online (www.tmcnet.com/comsol) has named Ditech's Quad Voice Processor™ as a recipient of a 2004 Product of the Year Award.

The Quad Voice Processor (QVP™) is Ditech Communications' four port voice processor system designed specifically for wireless voice quality applications. This extensible platform enables carriers to optimize the voice quality of their networks with Ditech's Voice Quality Assurance (VQA™), a complete suite of network-specific voice quality features for improving the mobile users' listening experience. VQA also enables mobile carriers to realize better spectrum utilization through improved Discontinuous Transmission operation (DTX), and by dramatically improving the voice quality delivered with low bit rate Codecs. The QVP is part of Ditech's broad family of voice processing systems that also include the Broadband Voice Processor-Flex, an industry leading platform for deployments that require voice processing at a scale of multiple DS-3, OC-3, STS-1 or STM-1 network interfaces.

"We are delighted to have achieved this award for demonstrated excellence in technological advancement and application refinements for our Quad Voice Processor," said Chalan Aras, vice president of marketing for Ditech Communications. "Our continued investment in voice processing technology as embodied in VQA provides a dramatic difference in voice quality to mobile users and significant economic benefit to carriers who are growing their networks."

The Product of the Year Award winners for 2004 is currently posted on the website of Communications Solutions magazine and can be found at www.tmcnet.com/comsol.

Ditech Communications Corporation

Ditech Communications Corporation is a global telecommunications equipment supplier for communications networks. Ditech Communications' voice processing products serve the needs of mobile and wire-line operators for circuit and packet based networks. Ditech products include high-capacity voice enhancement and echo canceller solutions that utilize advanced software and digital signal processor (DSP) technology. This combination of software and hardware allows Ditech Communications to deliver Voice Quality Assurance™ (VQA™), a robust and cost-effective solution for voice enhancement that includes both noise reduction and echo cancellation to provide improved sound quality on calls made over wireless networks. Ditech Communications' VoIP products combine VQA™ technology with packet voice processing and security capabilities to enable carriers to deploy end-to-end VoIP services across network security boundaries without requiring network re-architecting. Ditech Communications (DITC) is listed on the Nasdaq National Market and is headquartered in Mountain View, California (web site: http://www.ditechcom.com).