Press Release

Zhone Technologies and Tekelec Announce Deployment by TSC to Deliver Packet Voice, Data and Video Services

Zhone and Tekelec Demonstrate Proven Interoperability with Customer Deployment

OAKLAND, Calif., and MORRISVILLE, N.C. — November 8, 2005 — Zhone Technologies, Inc. (NASDAQ: ZHNE), the first company dedicated to building total-delivery solutions for voice, data and content services worldwide, and Tekelec (NASDAQ: TKLC), a leading developer of telecommunications products for next-generation fixed, mobile and packet networks, announced today that TSC, a provider of local, long distance, internet and data services headquartered in western Ohio has selected the companies' joint solution. TSC will deploy Zhone's Multi-Access Line Concentrator (MALC™) Next-Generation Packet Loop Carrier, the Tekelec 7000 Class 5 Packet Switch and the Tekelec 6000 VoIP Application Server to deliver voice and data service throughout its serving area.

Zhone's SLMS architecture and Tekelec's softswitch technology allows TSC to actively address the complete voice, data and video service delivery needs of their rural market. TSC is providing services that previously were available only in select major metropolitan markets.

"We are dedicated to bringing our customers state-of-the-art technology and services with a hometown flare for individual customer care," said Jason Neumeier, Chief Technology Officer at TSC. "TSC realizes the success of our company is measured by our customers' satisfaction. We will provide our customers with a winning team and reliable state-of-the-art technology backed by courteous and knowledgeable people to care for their needs and concerns. Our goal is to establish a lasting relationship where the customer is completely satisfied with TSC's services, products and employees."

Zhone and Tekelec also announced a global joint marketing agreement to offer carriers a complete and integrated access/switching solution for delivering reliable, revenue-generating voice and data services.

"Tekelec and Zhone are providing TSC with a solution that gives them a competitive edge and enables new sources of revenue," said Tricia Hosek, president and general manager, Switching Solutions Group, Tekelec. "Tekelec's NGN solutions allow TSC to make the most of its current infrastructure investments while offering new packet services. And, Zhone's advanced access technology further lays the groundwork for TSC to offer a broad set of future services enabled by pure packet technologies."

David Markowitz, vice president of marketing for Zhone, said, "Zhone and Tekelec continue to deploy interoperable products and technology, demonstrating continued market share gains and the rapid adoption of our joint solution. Expanding Zhone's technology through partnerships with vendors like Tekelec accelerates the value of Zhone's product portfolio to our customers."

TSC is an independent telephone company that has been serving Wapakoneta, Cridersville and surrounding areas with phone service since 1895. In 1995, TSC became an Internet Service Provider (ISP) in the northwest Ohio area by establishing bright.net Ohio LLC. By 1998, TSC began offering Cable Television service along with BrightLightning broadband cable modem service. In 2003, TSC expanded its offerings into the City of St. Marys, Ohio.

About TSC

TSC, which is headquartered in Wapakoneta, Ohio, is a rapidly growing provider of integrated telecommunications and related services to residential and business customers in West Central Ohio. TSC offers a comprehensive package of telecommunications and related services including local and long distance telephone service, Internet and data services, as well as video cable TV services. To learn more about the products and services TSC can provide please visit http://www.telserco.com

About Tekelec

Tekelec is a leading developer of now and next-generation signaling and switching telecommunications solutions, business intelligence tools and value-added applications. Tekelec's innovative solutions are widely deployed in traditional and next-generation wireline and wireless networks and contact centers worldwide. Corporate headquarters are located in Morrisville, N.C., with research and development facilities and sales offices throughout the world. For more information, please visit www.tekelec.com.

About Zhone Technologies, Inc. (Zhone)

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™), 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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