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Zhone Technologies Introduces VDSL2 CPE and Line Card for Market Leading Multi-Access Line Concentrator

High Bandwidth Solution Allows Carriers to Deliver Packet Voice, Data and High-Definition Video Services over Existing Copper Loops

OAKLAND, Calif — December 7, 2005 — Zhone Technologies, Inc. (NASDAQ: ZHNE), the first company dedicated to building total-delivery solutions for voice, data and video services worldwide, announced today it's new VDSL2 customer premise equipment and VDSL2 line card for it's Multi-Access Line Concentrator (MALC™) Next-Generation Broadband Loop Carrier.

The new VDSL2 broadband standard from ITU delivers speeds up to ten times the performance of ADSL. Zhone's new VDSL2 solutions adhere to the ITU standards to provide the highest bandwidth available over copper wires, and allows carriers to deliver voice, data and video service over their existing copper loops throughout their serving areas.

Very high-speed digital subscriber line (VDSL) solutions enable asymmetric and symmetric transmission at aggregated downstream and upstream speeds in excess of 100 Mbps. Zhone is using Conexant's VDSL2 CPE and CO chip sets to offer high-speed, long reach and low cost solutions for multi-tenant and multi-dwelling unit (MxU), remote terminal and CO deployments.

Zhone's VDSL2 solution offers full-rate VDSL and VDSL2 performance for packet-based service delivery. This low-power, fully programmable, high performance solution enables service providers to cost-effectively generate additional revenue by delivering triple-play video, voice and data services.

As part of the new technology announcement, Zhone is also introducing a new VDSL2 addition to its comprehensive line of customer premise equipment. This new VDSL2 CPE further leverages the company's expertise in DSL, wireless local area networking (WLAN) and a wide array of products for the digital home.

Zhone's SLMS architecture allows carriers to actively address the complete voice, data and video service delivery needs of their changing markets, allowing carriers to provide services that previously were available only over Fiber to the Premise (FTTP) and Hybrid Fiber Coaxial (HFC) networks.

"Zhone continues to provide solutions that give carriers a competitive edge and enables new sources of revenue," said Teresa Sperry, MALC product manager at Zhone. "Zhone's copper and fiber access solutions allow carriers to make the most of its current infrastructure investments while allowing migration to new packet services."

Features

• Compliant with ITU-T VDSL2/G.993.2, VDSL/G.993.1 ITU-T, ANSI T1-424, ETSI TS 101 270, and China MII VDSL standards
• Long-reach support with US0 Band
• Fully integrated ATM/PTM support
• DSP integrates interleave memory required by high speed video applications
• Programmable transmit power levels and PSD masks
• Maximizes flexibility of deployment scenarios from CO, remote terminal or MxU

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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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.