VRLK Verilink (MM)

Verilink Announces Modifications to Line of Credit Credit Line Available for Working Capital Needs MADISON, Ala., Nov. 17 /PRNewswire-FirstCall/ -- Verilink Corporation (NASDAQ:VRLK), a leading provider of broadband access solutions, today announced that RBC Centura Bank has waived Verilink's previously announced noncompliance with the tangible net worth financial covenant under the terms of the loan documents. The loan documents have also been modified, among other things, to reduce the total amount available under the line of credit to $3,500,000 from $5,000,000, and to reduce the minimum required tangible net worth covenant to $5,000,000 from $7,000,000. The line of credit expires April 7, 2005. Approximately $2 million is currently outstanding under the line of credit. As a result of the waiver and modifications, Verilink is now permitted to borrow under the line of credit based on eligible accounts receivable. About Verilink Corporation Verilink Corporation is a leading provider of next-generation broadband access solutions for today's and tomorrow's networks. The company develops, manufactures and markets a broad suite of products that enable carriers (ILECs, CLECs, IXCs, and IOCs) and enterprises to build converged access networks to cost-effectively deliver next-generation communications services to their end customers. The company's products include a complete line of VoIP and TDM-based integrated access devices (IADs), optical access products, wire-speed routers, and bandwidth aggregation solutions including CSU/DSUs, multiplexers and DACS. Verilink also provides turnkey professional services to help carriers plan, manage and accelerate the deployment of new services. The company has operations in Madison, AL, Aurora, CO and Newark, CA with sales offices in the U.S., Europe and Asia. To learn more about Verilink, visit the company's website at http://www.verilink.com/ . Note: Except for the historical information contained herein, the matters set forth in this press release, including statements as to future borrowings under the line of credit, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, but not limited to, the potential impact on the Company's liquidity and operations if its line of credit is not extended or renewed; the ability to successfully integrate acquisitions and achieve expected synergies; the ability of the combined company to develop and market successfully and in a timely manner new products and to predict market demand for particular products; the impact of competitive products and pricing and of alternative technological advances; the ability to increase sales of acquired product lines; the sufficiency of cost-saving activities, including the engineering consolidation plan; sufficient cash flow to fund operations and lower than expected cash flows from operations; risks associated with the Company's low level of liquidity and "going concern" paragraph in the report of independent registered public accounting firm for the audited fiscal 2004 financial statements; possible negative effects on our customer base, employees and our ability to obtain additional financing; fluctuations in operating results and general industry, economic and internal controls; the impact of price and product competition; the impact of customer concentration and the financial strength of customers; and changes in demand for the Company's products. A discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements are included in Verilink's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. These forward-looking statements speak only as of the date hereof. Verilink disclaims any intention or obligation to update or revise any forward-looking statements. NOTE: Verilink, the Verilink logo are registered trademarks of Verilink Corporation. Larscom is a registered trademark of Larscom Incorporated. All other trademarks or registered trademarks are the property of the respective owners. DATASOURCE: Verilink Corporation CONTACT: Bill Smith, +1-256-327-2204, or , or Gary W. Gray, +1-408-771-3354, or , both of Verilink Corporation Web site: http://www.verilink.com/

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