EXHIBIT 99.1

VERILINK CONTACT:

Gary W. Gray, Director of Marketing Communications
Verilink Corporation
510-771-3354
gary.gray@verilink.com

              VERILINK CORPORATION ANNOUNCES $10 MILLION FINANCING

Proceeds to be used for Repayment of Line of Credit, Working Capital and General
                               Corporate Purposes

CENTENNIAL, CO. -- MARCH 21, 2005 -- Verilink Corporation (Nasdaq: VRLK), a
leading provider of broadband access solutions, announced today that it has
entered into a securities purchase agreement which provides for a private
placement of $10 million of senior secured convertible debentures and warrants
with certain institutional investors. The purchase agreement also provides for
up to an additional $5 million of convertible debentures to be issued to the
investors at the investors' option or, under certain circumstances, at the
Company's option. The closing of the financing is expected to occur today. The
Company will use the net proceeds from the financing to repay its $3,500,000
revolving line of credit with RBC Centura Bank and for working capital and
general corporate purposes. The closing of the financing and repayment of the
RBC line of credit will resolve the existing default conditions with respect to
outstanding debt of the Company described in the Company's most recent Form
10-Q.

"This investment provides us additional capital resources to execute our
strategy which is focused on growth and strengthening our position in the global
broadband access market," said Leigh S. Belden, President and CEO of Verilink.
"With the integration of last year's acquisitions now largely completed, we
believe Verilink is well positioned to address carrier requirements for today's
networks while providing an elegant migration path to tomorrow's networks
delivering VoIP and native Ethernet services."

The debentures are convertible into common stock at a conversion price of $3.01
per share, which represents a 15% premium to the closing price of the Company's
common



stock on the Nasdaq National Market on Friday, March 18, 2005. The conversion
price is subject to adjustment in certain circumstances. The debentures bear
interest at a rate of six percent per annum and are repayable in quarterly
payments in either cash or, after effectiveness of the registration statement
referred to below, common stock over a period of up to three years. Verilink
will have the right, beginning one year after effectiveness of the registration
statement, to require conversion of the debentures to common stock if the
closing price of a share of the Company's common stock exceeds 200 percent of
the conversion price for 20 consecutive trading days. The debentures are secured
by substantially all of the assets of the Company. The warrants are initially
exercisable for 830,563 shares of the Company's common stock at a price of $3.41
per share, have a term of five years and will be exercisable beginning six
months after the closing date. The Company is required to file a registration
statement with the Securities and Exchange Commission to register the shares of
common stock issuable in connection with the financing. The Company will seek
stockholder approval for the potential issuance of shares of common stock upon
conversion of the debentures and for principal and interest payments on the
debentures in order to satisfy applicable Nasdaq requirements. The exercise
price of the warrants is subject to adjustment in circumstances similar to the
conversion price of the debentures.

The debentures and the warrants sold in the private placement and the shares of
common stock issuable in connection with the financing have not been registered
under the Securities Act of 1933, as amended, or state securities laws and may
not be offered or sold in the United States absent registration with the
Securities and Exchange Commission ("SEC") or an applicable exemption from the
registration requirements. The debentures and warrants were offered and sold
only to qualified institutional buyers and institutional accredited investors.
This announcement is not an offer to sell or the solicitation of an offer to buy
the debentures, the warrants or shares of common stock of the Company.

This announcement is only a description of the terms of the debentures and
warrants and is not a solicitation of a proxy to approve the terms of the
financing. Information concerning the financing will be included in a Current
Report on Form 8-K and any proxy statement to be furnished in connection with a
meeting of the Company's stockholders.



Kaufman Bros, L.P., an investment banking firm specializing in the
communication, media and technology sectors, acted as sole placement agent to
the Company for the transaction.

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, VoATM, VoDSL
and TDM-based integrated access devices (IADs), optical access products,
wire-speed routers, and bandwidth aggregation solutions including CSU/DSUs,
multiplexers and DACS. The company also provides turnkey professional services
to help carriers plan, manage and accelerate the deployment of new services.
Verilink is headquartered in Centennial, CO (metro Denver area) with operations
in Madison, AL and Newark, CA and sales offices in the U.S., Europe and Asia. To
learn more about Verilink, visit the company's website at
http://www.verilink.com.

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"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995

Except for the historical information contained herein, the matters set forth in
this press release 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 include the prospects for completing
integration of the Company's acquisitions, executing its business strategy,
growth and the strengthening of its position in the global broadband access
market and it's ability to address carrier requirements for future networks and
the resolution of defaults. Such statements involve known and unknown risks,
uncertainties and other factors that may cause the Company's actual results,
performance or achievements to be materially different from the results,
performance or achievements expressed or implied by such forward-looking
statements. Such risks, uncertainties and other factors include, the potential
impact on the Company's liquidity and operations if it is unable to repay the
debentures or meet its working capital needs; the potential dilution to the
company's existing stockholders upon issuance of shares of common stock pursuant
to the terms of the financing, the impact of future developments and unknown
occurrences on compliance with the terms and conditions of financing, the
ability to successfully integrate acquisitions and achieve expected synergies;
the ability 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 impact of cost-saving
activities, including the consolidation plans; the sufficiency of cash flow to
fund operations; risks associated with the Company's lack of liquidity and
"going concern" qualification in the report of independent registered public
accounting firm for the audited fiscal 2004 financial statements; possible
negative effects on the Company's customer base, employees and its ability to
obtain



additional financing; fluctuations in operating results and general industry and
economic conditions; costs associated with 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 risks and uncertainties that could cause actual
results and events to differ materially from such forward-looking statements are
included in the Company's Annual Report on Form 10-K, Quarterly Reports on Form
10-Q and Current Reports on Form 8-K. These forward-looking statements speak
only as of the date hereof. The Company disclaims any intention or obligation to
update or revise any forward-looking statements.

Verilink and the Verilink logo are registered trademarks of Verilink
Corporation.