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REDWOOD CITY, Calif., January 19, 2001 -- Clarent® Corporation (Nasdaq:
CLRN), a leading provider of Internet protocol (IP) communications
solutions, today reported financial results for the fourth quarter and
full
year ended December 31, 2000.

Net revenue for the fourth quarter of 2000 was $53.2 million, representing
an increase of 17% from $45.5 million in the third quarter of 2000 and an
increase of 186% from $18.6 million in the fourth quarter of 1999.

Excluding the amortization of deferred compensation and intangible assets,
the Company reported pro forma net loss of $2.1 million or $0.05 per basic
and diluted share for the fourth quarter of 2000, compared to net income
of
$1.6 million or $0.04 per diluted share in the third quarter of 2000 and a
net loss of $1.5 million or $0.05 per basic and diluted share in the
fourth
quarter of 1999. Including the amortization of deferred compensation and
intangible assets, the Company reported a net loss of $14.1 million or
$0.36
per basic and diluted share for the fourth quarter of 2000, compared to a
net loss of $39.5 million or $1.08 per basic and diluted share in the
third
quarter of 2000 and a net loss of $3.5 million or $0.13 per basic and
diluted share in the fourth quarter of 1999.

For the full year 2000, Clarent reported revenues of $151.6 million, a
217%
increase over the $47.8 million reported in 1999. Excluding the
amortization of deferred compensation and intangible assets and one-time
charges related to the ACT Networks acquisition, the Company reported pro
forma net income of $1.7 million, or $0.04 per diluted share, as compared
to
a net loss of $11.3 million, or $0.68 per basic and diluted share in 1999.
Including the amortization of deferred compensation and intangible assets
and one-time charges related to the ACT Networks acquisition, the Company
reported a net loss of $54.1 million, or $1.54 per share, as compared to a
loss of $30.8 million or $1.87 per share reported in 1999.

"We have seen a number of developments this quarter that demonstrate our
market opportunity and validate the strategic choices we have made," said
Jerry Chang, Clarent's president and chief executive officer. "We've made
significant early inroads in the Local Access market, with initial
software
shipments to support deployments in multiple geographies, and we've seen
healthy growth and development of our distribution channels. We continue
to
sharpen our focus to seize the tremendous and expanding global market
opportunities."

"Our outstanding fourth quarter results demonstrate that Clarent continues
to lead the revolution in the delivery of next generation communication
solutions," commented Rich Heaps, Clarent's chief operating officer and
chief financial officer. "These results also demonstrate the impact that
a
software-based solution has on the time-to-market for delivery of new
services and applications central to the future success of our customers."

Quarterly Highlights

During the fourth quarter of 2000, Clarent Corporation strengthened its
position as the worldwide leader in IP telephony solutions with the
announcement of key strategic partnerships and customers. Specifically,
Clarent:

* Was named by iLocus as the leader in phone-to-phone IP telephony
market in 2000, for the third year in a row. In 2000, Clarent products
handled 31.6 percent of the estimated 13 billion phone-to-phone IP
telephony
minutes worldwide, according to iLocus.

* Announced that Australian telecommunications service provider,
Cable
& Wireless Optus, chose Clarent communications products to power its
Global
VoIP (Voice over IP) network management platform for long-distance calling
services.

* Announced, with Cadant and Future Networks, the interoperability
of
our respective products to meet the needs of hybrid-fiber coax (HFC)
network
operators who intend to deploy voice services to the home via cable
networks.

* Demonstrated the delivery of packetized voice services based upon
the CableLabs' PacketCable(tm) set of specifications at the Western Cable
Show.

* Announced a collaboration with ThinWEB to provide its customers
with
a rich graphical user interface (GUI) for remotely accessing their VoIP
network databases via any secure Web browser, making network management
and
configuration easier and more efficient.

* Announced a collaboration with Java City Technologies, whose
application suite is expected to offer carriers pre-configured hardware
and
software for building VoIP services on Clarent's communications platform.


About Clarent

Clarent Corporation (Nasdaq: CLRN) is the world leader in providing
intelligent, software-driven products for new generation, IP-based
communications networks. Clarent solutions enable interconnection among
communications service providers' disparate networks and foster the
creation
of global footprints for more than 300 telecom service providers
worldwide,
including AT&T, NTT and China Telecom. Clarent's software platform
encourages innovation by allowing carriers to develop multiple new
features
for consumers and enterprises. Founded in 1996, Clarent is headquartered
in
Redwood City, Calif. and has offices in Asia, Europe, Latin America and
North America. To learn more about Clarent, visit its Web site at
http://www.clarent.com


Forward Looking Statements

This release contains forward-looking statements that involve risks and
uncertainties, including statements about the expected development of the
communications market and the rate and extent of acceptance of IP-based
enhanced communications services. These statements involve risks and
uncertainties, including the Company's ability to introduce new products
and
product enhancements, the successful development of enhanced IP-based
communications services and features, the rate and extent of consumer
acceptance of these services and features, as well as potential issues
relating to interoperability, ability to retain customers, changes in
market
conditions, technological changes, and other factors which could cause
actual results to vary materially from those expressed in or indicated by
the forward-looking statements. These risks and uncertainties are
described
further in the risk factors discussed in Clarent's periodic filings with
the
SEC.

Clarent, the Clarent logo, NetPerformer, DynaStar, Clarent Command Center,
Clarent ThroughPacket, PowerCell, SkyPerformer, ACTview and ServiceXchange
are trademarks or registered trademarks, and "The Clearer. The Better" is
a
service mark of Clarent Corporation in the United States and other
jurisdictions. All other trademarks, registered trademarks and service
marks
are the property of their respective owners.



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