Ditech Communications Names Lee House as Vice President of Engineering For Voice Communications and Echo Cancellation Products

Brings Voice Systems and Networking Experience From Jetstream, 3Com and IBM

Mountain View, California, May 15, 2002 – Ditech Communications Corporation, (Nasdaq: DITC) today announced that Lee House has been named as Vice President of Engineering for Ditech's Voice Communications and Echo Cancellation Products. House replaces Serge Stepanoff, who will be retiring after 11 years with Ditech. House's primary responsibility is to oversee all Ditech's voice communications and echo cancellation product development. He will report directly to Tim Montgomery, Ditech's chairman, president and CEO.

"Ditech has built a reputation for engineering and technical excellence in the echo cancellation systems market, where we've consistently delivered products that support higher interface speeds and utilize much less space and power than our competition," said Tim Montgomery. "A significant share of the credit for that reputation goes to our fine Vice President of Engineering, Serge Stepanoff, who is now retiring." Continued Montgomery, "Lee House, our new Vice President of Engineering, has the expertise and experience to enhance Ditech's reputation for building advanced echo cancellation system products. Before joining Ditech, Lee was responsible for development of Jetstream's carrier-class platform and integrated access products, which incorporated both data and voice technologies. Lee also has broad voice communications, DSP, and system development experience as a result of his work at 3Com and IBM. As we look to extend our current line of echo cancellation system products and to develop the next generation of voice products, Lee provides us with the right combination of engineering talent and management leadership."

"Echo cancellation remains an important element for any carrier-class network, whether that is a traditional circuit switched network, or one that includes voice-over-packet, or voice-over-Cable/DSL," said Lee House. "My role is to enhance Ditech's current set of echo cancellation system products to expand our market penetration, and to oversee the development of new products which will utilize Ditech's echo cancellation and voice processing experience. I'm very proud to be joining a team and organization with an established track record of business and technical success."

Lee House has over fourteen years of engineering experience with several major telecommunications companies. House joins Ditech from Jetstream Communications, where he was the Senior Director of Systems Development since 2000. In this role, he was responsible for the development of System Platform and Integrated Access Device hardware and firmware. Prior to Jetstream, he was the Senior Director of DSL Product Management and Business Development for 3Com Corporation. House also served 3Com as Senior Director of Research and Development for Modems and Internet Appliances. From 1989 to 1998, he held a variety of positions at IBM. During his tenure, House held senior management positions in research and development and product management for Token Ring and Ethernet Adapters, Hubs and Switches, as well as serving in many engineering development and design roles. House received both his Masters in Business Administration and his Masters in Electrical Engineering from Duke University. He also holds a BA from Rhodes College and a BSEE from Christian Brothers University.

Ditech Communications Corporation is a global telecommunications equipment supplier for voice and data networks. Ditech's voice products are high-capacity echo cancellers that utilize advanced software and digital signal processor (DSP) technology. This unique combination of software and hardware allows Ditech to deliver Voice Quality of Service (VQoS™), a robust and cost-effective solution for voice enhancement and echo cancellation. Ditech's products for data networks provide building blocks for high-speed, high-capacity optical backbone networks. These products are based on wavelength division multiplexing (WDM), a technology that enables many wavelengths of light, each carrying multiple gigabits of information, to be carried on one fiber optic connection. With Ditech's optical subsystem products, network equipment companies and service providers can quickly and cost-effectively expand their network capacity to meet the growing demands of the Internet age. Ditech (DITC) is listed on the Nasdaq National Market and is headquartered in Mountain View, California (Web site: http://www.ditechcom.com).

Forward-Looking Statements

The statements in this press release with respect to Ditech's expectations of the benefits it will obtain from hiring Mr. House's are forward-looking statements. Actual results could differ materially as a result of many factors and events, including: the risk that House could leave the company for some unanticipated reason; the risk that his new projects may run into unforeseen technical difficulties, or the new products that he develops are not accepted by the marketplace; as well as those detailed in the "Future Growth and Operating Results Subject to Risk" in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operation" of Ditech's Form 10-Q for the quarter ended January 31, 2002 (filed March 18, 2002 with the Securities and Exchange Commission).