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Lafourche Telephone Company Selects Zhone's Multi-Access Line Concentrator to Deliver Leading Edge Services

Leading Independent Carrier Selects Single-Line, Multi-Service Network Architecture for Fast, Efficient and Profitable DSL Deployment

OAKLAND, Calif. — December 13, 2005 — Zhone Technologies (NASDAQ: ZHNE) announced today that Lafourche Telephone Company (Latelco), a leading independent telecommunications service provider head-quartered in Larose, Louisiana, has selected Zhone's Multi-Access Line Concentrator (MALC™) for enhanced broadband service delivery and IP services over its existing copper loop infrastructure.

Developed to help service providers address the rampant competitive build-out of the access network, Zhone's next generation Single-Line Multi-Service (SLMS™) architecture allows Latelco to deliver a rich array or broadband services.. In addition, the SLMS architecture has helped to streamline Latelco's network operations by providing the company with a uniform, standards-based architecture with a single management system from which to diagnose, troubleshoot, provision, and bill across all services. Zhone's next-generation SLMS architecture also reduces time-to-market for service delivery.

"At Zhone, we are continuing to develop products that address those issues for which almost every service provider around the world is facing today. Namely, how to build-out their networks so that they can deliver competitively priced broadband services, while at the same time minimizing both the capital and operational expenses usually associated with service and infrastructure expansion," said Eric Presworsky, vice president of product management at Zhone. "Latelco is a great example of a company that truly understands the real benefits of the SLMS architecture."

About Lafourche Telephone Company (Latelco)

Lafourche Telephone Company (Latelco) is an independent telecommunications service provider dedicated to offering residential and business customers with a complete range of services including local, long distance, answering service, dial-up and high speed Internet access.

Latelco has been providing telephone service since 1945 and is a subsidiary of SJI, LLC, an independently owned and operated communications conglomerate head-quartered in Larose, Louisiana. For more information, please visit http://www.latelco.com.

About Zhone Technologies, Inc. (Zhone)

Zhone (Nasdaq: ZHNE) designs and manufactures network equipment for telephone companies and cable operators worldwide. Zhone's products allow network operators to deliver of voice, data and video 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™ and GranDSLAM™ ATM/IP DSLAMs, ReachDSL™ Technology, FiberSLAM™ Optical Line Terminal, Zhone Residential Gateways (ZRG™), GigaMux™ Optical Transport Systems and Zhone Management System (ZMS™). With deployments at over 600 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 © 2005 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.