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Zhone Introduces New Capabilities to Raptor DSLAM Product

New Raptor 100 DSLAM with ADSL2+ Provides Greater Bandwidth, More Uplink Options and Integrated Management Capabilities for Triple-Play Service Delivery

OAKLAND, Calif. — October 5, 2004 — Zhone Technologies, Inc. (NASDAQ: ZHNE), the first company dedicated solely to delivering the full spectrum of next-generation access and transport infrastructure equipment, today announced the availability of its new Raptor 100 DSLAM.This new compact Raptor 100 provides next-generation DSLAM features, with support for ADSL2+ and a broader array of Ethernet uplink options. The small footprint makes the new Raptor 100 ideally suited for central office, remote terminal andsubtended deployments from existing cabinets.

The new Raptor 100 supports ADSL2+ to achieve additional bandwidth and reach while simultaneously preserving investment in previous ADSL CPE already deployed. This new technology is capable of delivering downstream data rate services up to 24 Mbps and upstream data rates ranging up to 3 Mbps. Subscribers beyond the standard serving area also benefit from extended reach capabilities creating new revenue generating opportunities as carriers are able to capture new broadband subscribers and deliver new bundled services including switched digital video.

By simultaneously addressing the need for bandwidth, reach and interoperability, Zhone is enabling operators to more cost effectively provide and deploy cost-effective multi-service networks.

"The delivery of triple-play video, data and VoIP services is predicated on bandwidth," said Steve Rogers, vice president of product management at Zhone. "Achieving sufficient bandwidth requires cost-effectively shortening copper loop lengths by moving DSLAMs closer to the subscriber. By offering the broadest range of line counts along with optional waterproof enclosures, local or line-powering and subtending capabilities, the Raptor family of DSLAMs cost-effectively minimizes loop lengths, eliminating both technical and economic barriers to delivering profitable triple-play services ."

This new version of the Raptor 100 follows the widely accepted success of the earlier Raptor 100 product which has already been deployed by leading carriers globally. The Raptor is a versatile platform that is available in a range of environmentally hardened shelf sizes including 7U, 3U and 1U that can be deployed in the CO, in Remote Terminals or in buildings. The Raptor family supports a wide variety of line interfaces and uplinks including DS1 IMA, OC-12, 10/100 BaseT, Gigabit Ethernet or Resilient Packet Ring over Gigabit Ethernet.

Zhone's integrated ZMS-LT Management System comes embedded as part of the Raptor 100 platform, providing a convenient and scalable provisioning and management program for a single device or small network. Zhone's highly scalable OSMINE-certified ZMS management and provisioning system is also available for managing platforms and services across an entire access network.

The Raptor Next-Generation DSLAM provides the highest density and lowest cost per port of any DSL platform on the market today. In addition, the Raptor is the only family of DSLAMs that offer software upgradeability to a fully functional voice and data NGDLC, and provides in-service software-selectable ATM or IP uplinks. The Raptor thereby makes the delivery of DSL services attractive and simple, regardless of line count while also providing carriers with an elegant migration of their networks to pure packet.

Zhone products are installed today at over 300 carriers and serve over 11 million subscribers worldwide.

About Zhone Technologies, Inc. (Zhone)

Zhone (NASDAQ: ZHNE) designs and manufactures network equipment for network operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video, and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.

Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS™), Multi-Access Line Concentrator (MALC™), Raptor™ ATM/IP DSLAMs, Zhone Residential Gateways (ZRG™), GigaMux™ Optical Transport Systems and Zhone Management System (ZMS™). With deployments at over 300 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses. For more information, please visit http://www.zhone.com

Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice. Copyright 2004 Zhone Technologies, Inc. All rights reserved.

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Zhone, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice.