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Zhone Introduces New Compact Full-Featured MALC 100 to its Market-Leading Broadband Loop Carrier Products

Next-Generation Access Architecture Shortens Loop Lengths to Allow Cost-Effective Delivery of High-Bandwidth Voice, Data and Video Services from Remote Terminals

OAKLAND, Calif. — October 25, 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 the availability of the newest addition to its market-leading Multi-Access Line Concentrator (MALC). The new MALC 100 allows service providers to deliver voice, data, and video services all from a compact 1U Broadband Loop Carrier (BLC).

The new MALC 100 supports 48 ports of ADSL2+, lifeline POTS and integrated splitters with ample bandwidth to deliver high-definition and multiple standard-definition video streams, high speed data and packet voice services to each subscriber. Copper or fiber dual Gig-E uplinks support standards-based Resilient Packet Ring (RPR) technology to provide cost-effective and bandwidth-efficient traffic management with quality of service assurances and network resiliency.

Optional Watertight OSP Enclosures allow for pole, pedestal, or underground deployment and a small footprint allows carriers to deploy closer than ever to their subscribers to assure ample bandwidth for advanced triple play services even to subscribers even in remote serving areas. This flexibility creates new revenue generating opportunities for carriers, allowing them to capture new broadband subscribers and deliver new bundled services including switched digital video throughout their service footprint.

The new MALC 100 follows the market-leading MALC and Raptor products which have been widely deployed by leading carriers globally. Like the Raptor, the MALC is a versatile platform that is available in a range of environmentally hardened shelf sizes including 7U, 3U and now 1U and can be deployed in the CO, remote terminals or subtended from existing cabinets.

By simultaneously addressing the need for bandwidth, reach and interoperability, Zhone allows operators to provide cost-effective voice, data and video services. In addition, the MALC is the only family of BLCs that provide in-service migration from TDM to IP Voice (VoIP) services with software-selectable emergency standalone capabilities. The MALC makes delivery of voice, data and video services possible today while providing an elegant migration to pure packet.

"Carriers are turning to Broadband Loop Carriers to deliver triple-play voice, data and video services," said Eric Presworsky, vice president of product management at Zhone. "As the number one provider of BLC platforms today, Zhone has eliminated both technical and economic barriers to delivering profitable triple-play services."

Zhone's embedded ZMSe management system comes embedded as part of the MALC 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.

About Zhone Technologies, Inc.

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 (MALCÔ), 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 over one million subscriber interfaces shipped and 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 .

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