Interphase Reaffirms Strategic Commitment to Advanced Telecom Computing Architecture (AdvancedTCA)

PLANO, Texas--March 14, 2005-- Interphase Corporation (Nasdaq:INPH), an international supplier of next-generation networking technologies, today reaffirmed its strategic commitment to support the PICMG® 3.X AdvancedTCA (ATCA) specifications as it delivers a portfolio of building blocks for emerging ATCA platforms. This commitment is built on a legacy of Interphase providing Telecom Equipment Manufacturers (TEMs) with standards-based PMC mezzanine modules and blades for CompactPCI® 2.16 platforms. Interphase will offer a broad line of AdvancedMC mezzanine modules, and will continue to expand its current line of iNAV® ATCA Carrier and Network Processor Blades as the needs of this emerging market continue to evolve.

The Interphase ATCA product strategy enables early adopters to leverage their previous development efforts as communications platforms evolve over time. Telecom Equipment Manufacturers are currently developing first-generation ATCA platforms using PMC modules from Interphase Corporation. Customers who are early adopters of ATCA will experience the benefits of working with Interphase as they migrate from communications platforms based on Interphase PMC mezzanine modules to the company's AdvancedMC modules. With a broad portfolio of AdvancedMC mezzanines planned for I/O, network processing, security processing, and computing, Interphase will enable its early-adopter customers to leverage their previous development efforts on next-generation ATCA platforms, thereby saving them time and costs for additional systems integration efforts.

Interphase is currently developing its next-generation of AdvancedTCA blades designed to offer maximized functional density and flexibility for utilizing the full capabilities of standard AdvancedMC mezzanine cards, a product strategy evolved from previously announced first-generation blades designed for use with PMC and PTMC mezzanine cards.

ATCA lays the framework for a new generation of communications infrastructure that will offer a dramatic performance improvement over the systems available today. Targeted for next-generation carrier grade communications equipment, the ATCA series of specifications incorporate the latest trends in high speed interconnect technologies, next generation processors, and improved reliability, manageability and serviceability. Interphase ATCA products are designed to target those application segments with the greatest level of forecasted demand for ATCA, including converging next-generation PSTNs, wireless and edge networks.

"We believe that AdvancedTCA solutions will be the architecture of choice for the most demanding carrier and enterprise applications," said Greg Kalush, President and CEO of Interphase Corporation. "Interphase's product strategy serves to "future proof" our customers' investment by supporting a smooth migration from today's technologies such as CompactPCI and PICMG 2.16 CPSB, to newer technologies like AdvancedTCA."

"ATCA offers key advantages over existing commercial platform designs." adds Felix Diaz, CTO and VP of Engineering of Interphase Corporation. "A larger board footprint that supports up to eight AMC sites enables unprecedented processing density on a single slot, and the vastly improved thermal performance and carrier class system management provides greater flexibility for adding components and functionality. This new system design will enable us to better fulfill our customers' requirements for the most robust wireless, convergence, and network/telephony access applications."

About Interphase Corporation

Interphase enables rapid platform design and integration for the global voice and data communications markets through custom and off-the-shelf communications equipment, embedded software development suites, and systems integration and consulting services for telecom and enterprise networks. The company's products connect computer and telecommunication servers to Wide Area Networks (WANs), Local Area Networks (LANs) and Storage Area Networks (SANs) using Asynchronous Transfer Mode (ATM), Ethernet, Signaling System 7 (SS7), IP, Fibre Channel, HDLC, Frame Relay, and Integrated Services Digital Network (ISDN) technologies. Headquartered in Plano, Texas with sales offices across the globe, Interphase 2004 revenues were $35 million. Clients include Hewlett-Packard, Ericsson, Motorola, Inc., Fujitsu Ltd., Nortel Networks Ltd., Lucent Technologies, Lockheed Martin, and Raytheon. Additional information about Interphase and its products is available through the company's web site at www.interphase.com.

Safe Harbor

This press release contains forward-looking statements with respect to financial results and certain other matters. These statements are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, without limitation, fluctuations in demand, the quality and price of similar or comparable networking products, access to sources of capital, general economic conditions in the company's market areas, and that future sales and growth rates for the industry and the company could be lower than anticipated.

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