Altamar Networks Announces the Orion Optical Amplifier

Next Generation Optical Amplifier Provides Advanced Capabilities in a Compact Form

Mountain View, California, July 2, 2001 - Altamar Networks, a wholly owned subsidiary of Ditech Communications Corporation (Nasdaq: DITC), today announced the Orion, a next generation optical amplifier that provides dynamic power management and gain flattening control in a single, compact unit. In dense wavelength division multiplexing (DWDM) networks, Orion's amplification and dynamic gain control work to maintain the quality and the stability of the other signals on the link by removing any power fluctuations caused when optical signals are added, dropped or switched.

Altamar Networks developed the Orion in response to demand by service providers for optical amplifiers that could meet the dynamic requirements of next generation DWDM networks. In these networks, service providers can actually route a wavelength between two points during the time a customer wants it and then tear down the connection and reuse the wavelength somewhere else in the network. In addition to its power management and gain control capabilities, Orion's third generation optical amplifier design enables single wavelength protection switching, which minimizes the amount of network bandwidth allocated to restoration.

"Optical amplifier technology continues to evolve in response to changing service provider requirements," said Tim Montgomery, president, chairman and CEO of Altamar Networks. "Our newest optical amplifier, Orion, heralds the introduction of our third generation amplifier technology that is key to enabling service providers to offer new services, improve reliability, and lower operations costs. Response to the Orion has been very positive and we're already shipping in volume."

The Orion Optical Amplifier is now available for shipment to network equipment manufacturers and pricing will be released to customers upon request. Further information on the Orion can be found on the Altamar Networks' website located at www.altamar.com.

Altamar Networks

Altamar Networks designs, develops and markets communications equipment for the core optical network. Altamar Networks' flagship product, Titanium Optical Network System, is being developed to integrate the key optical networking functions of switching, transport and network management into a single system that offers carriers radical switching scalability while driving down transport costs. Altamar Networks is a subsidiary of Ditech Communications Corporation (Nasdaq: DITC), and is headquartered in Mountain View, California. (Web site: http://www.altamar.com)

Forward Looking Statement

This press release contains forward-looking statements regarding Altamar Networks and Ditech's expectations of the scheduled release and performance of its new Orion product. Actual results could differ materially as a result of unanticipated factors and events, including the risk of unforeseen technical difficulties, the risk of the inability to procure an adequate supply of reliable components, the risk of failure to generate the customer demand expected by Altamar Networks, and the risk that competitors may develop superior or more cost-effective technology, as well as those detailed in Ditech's Form 10-K/A for the year ended April 30, 2000 (filed August 10, 2000 with the Securities and Exchange Commission).