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inter-touch Selects Zhone's 4800 DSLAM for Broadband Hospitality Solutions

OAKLAND, Calif. — September 27, 2005 — Zhone Technologies, Inc. (Nasdaq: ZHNE), the first company dedicated to building total-delivery solutions for voice, data and video content services worldwide, today announced that it has been selected by inter-touch to deliver Digital Subscriber Line (DSL) hospitality solutions. Zhone's solutions allow inter-touch and its customers to deliver video services over existing in-building copper infrastructure.

inter-touch has been using Zhone for the deployment of its Multi Connect services for a major hotel group in Australia in more than 3,000 rooms. Multi Connect provides high-speed, high quality, simple to use Internet access for multiple users in a meeting or conference environment. inter-touch has also started deployment in Singapore and Malaysia using Zhone's BitSorm 4800 platforms.

"inter-touch has always been a leading provider serving the hospitality broadband market since 1998", said Mr. John Houston, Chief Executive Officer & President of inter-touch. "In using the Zhone platform, we are able to offer DSL based broadband services to our customers with service levels that are enjoyed by our typical CAT 5 based installations.

"inter-touch's selection of Zhone serves as a validation that our product offerings for this market are right on target. Regardless of deployment location, whether central office (CO) deployment, in-building, or hospitality type setting, Zhone's suite of broadband service offerings provide service providers with competitive multi-service delivery," said Gerry Pagano, Zhone's Vice President of Sales for Asia PacRim.

About inter-touch

inter-touch is the leading provider of fast, convenient, reliable and secure wired and wireless broadband connectivity, communications and applications to the business traveler in over 65,000 hotel rooms, conference and meeting facilities, airline lounges and serviced apartments in 34 countries across Asia Pacific, China, the Middle East, Africa and Europe. inter-touch's broadband wireless and wired solutions cater for greater than two million connections annually. Since 1998, inter-touch has partnered with many prestigious hotel brands and management companies around the world including Accor, Boscolo Group, Hilton Hotels, Hyatt International, InterContinental Hotels, Langham Hotels International, Le Meridien Hotels & Resorts, Marriott, Mirvac Hotels & Resorts, Oakwood, Ritz Carlton, Shangri-La Hotels & Resorts, Sheraton, Stamford Hotels & Resorts, Pan Pacific Hotels and Resorts, Principal Hotels and Thistle Hotels. inter-touch is wholly owned by NTT DoCoMo Inc. and is headquartered in Singapore, with offices in 14 countries throughout including the Centre of Excellence for customer support in Kuala Lumpur. For a complete listing of inter-touch hotels or to learn more, please visit www.inter-touch.com

About Zhone Technologies, Inc.

Zhone 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(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) and GrandSLAM ATM/IP DSLAMs, ReachDSL(TM), Network Extender Ethernet in the First Mile bonded solutions, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM), Optical Transport Systems and Zhone Management System (ZMS(TM)). With deployments at over 400 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses. For more information, please visit www.zhone.com.