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Arialink Broadband Selects Zhone's New Compact, Full-Featured MALC 100 Product for Triple Play

New MALC 100 gives Zhone the most comprehensive set of Broadband Loop Carrier solutions in the industry

Oakland, CA — March 21, 2006 — 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 Lansing, Michigan-based Arialink has selected its new MALC 100 Multi-Access Line Concentrator (MALC™) product. As Lansing's leader in Internet and telecommunication connectivity, Arialink selected Zhone's MALC 100 to deploy triple-play bundle packages of phone, cable TV and high-speed Internet. Zhone's new MALC 100 follows the company's market-leading MALC and Raptor products, which have been widely deployed by leading service providers around the world.

"Triple-play bundle packages allow residents to have high-quality services and provides low costs by bundling the service for a price that is less than the price of individual services," said Tim Lebel, Arialink Broadband's vice president of operations in Lansing, Michigan.

With support for both 48 POTS and ADSL2+ ports in a 1U chassis, Zhone's versatile MALC 100 allows service providers to bundle packages throughout their serving areas. And because of its compact size, the environmentally hardened MALC 100 can be deployed in central offices, remote terminals or subtended from existing cabinets.

"Service providers are turning to broadband loop carriers to deliver triple-play services. By simultaneously addressing the need for bandwidth, reach and interoperability, the MALC 100 allows Arialink to provide cost-effective voice, data and video services to its valued customers." said David Markowitz, vice president of marketing at Zhone. "As the newest member of Zhone's family of market-leading broadband loop carriers, the MALC 100 gives Zhone the most comprehensive set of BLC solutions in the industry."

The success of Zhone's MALC family of BLCs is being acknowledged not just by customer wins and market share, but also by telecom industry analysts. In November, an independent analyst firm awarded the MALC the highest ranking of any product in the space, edging out offerings from eight competing vendors. The MALC was also distinguished by industry analyst firm Current Analysis, which called it the only platform deemed "very threatening" to competitors.

"We believe 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," added Markowitz. "The MALC makes delivery of triple-play bundles possible today, while providing an elegant migration path to pure packet."

About Zhone Technologies

Zhone Technologies is a worldwide leading supplier of communications network equipment for telephone companies and cable operators. Zhone is enabling enhanced services by allowing network operators to offer broadband services over their existing networks today while simultaneously retooling for packet-based VoIP and IPTV over both copper and fiber access lines.

By utilizing Ethernet and IP technology, Zhone's products simplify network operations by consolidating multiple services onto a single access line. This convergence of services and networks simplifies provisioning and operations, delivers quality and reliability, and opens the door for delivering exciting new services.

Zhone pioneered this new category of products now commonly referred to as Broadband Loop Carriers (BLCs) which are regarded among the fastest growing segments of the multi-billion dollar DSL market. According to industry analysts, Zhone is first in broadband loop carrier market share. Zhone is also first in Ethernet over bonded copper market share and Zhone's products were awarded top ranking among BLCs.

With corporate headquarters in Oakland, California, Zhone operates development centers across North America and has sales and service facilities and customers spanning the globe. With deployments at over 600 carriers including some of the world's largest networks, Zhone has enabled carriers to reinvent their businesses.

About Arialink

Headquartered in Lansing Michigan, Arialink Broadband is a leading provider in connectivity for businesses, institutions and residential communities. For more information on Arialink Broadband, please visit www.arialink.com or call (517) 492-1350.

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