Zhone Announces High Capacity Ethernet First-Mile Fiber Solution

EtherActive™ FTTP products expand Zhone's EtherXtend™ portfolio to deliver cost-effective high bandwidth Ethernet services over copper or fiber

Oakland, CA — May 25, 2006 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a worldwide leading supplier of VoIP and IPTV equipment for copper and fiber access networks, today announced it's EtherActive™ Fiber to the Premise (FTTP) products that enable delivery of high bandwidth Ethernet services over fiber.

Zhone's new EtherActive Optical Line Terminal (OLT) can support up to 10 subscribers per blade with 10/100/1000Mbps service over either copper or single/dual mode fiber. Zhone's innovative OLT solution allows carriers to mix and match copper and fiber services on the same card.

As part of Zhone's EtherXtend product portfolio, the new EtherActive products allow carriers to deliver Gigabit Ethernet Services directly to homes and businesses. Zhone's EtherXtend products have already received acclaim as being first to market and the market leader in the rapidly growing Ethernet over bonded copper market. Today's EtherActive product announcement expands the EtherXtend product family to include additional Ethernet service options over both copper and fiber access networks. This broad range of Ethernet service solutions are all available on Zhone's highly acclaimed Multi-Access Line Concentrator (MALC™), the world's Number 1 market leading Broadband Loop Carrier product.

By operating on Zhone's market-leading MALC platforms, the EtherXtend product family enables carriers to quickly deliver standards based Ethernet services over existing copper or fiber utilizing industry standard EFM technology. Today's announcement of new Ethernet over fiber solutions complements Zhone's market leading bonded Ethernet over copper products. Together, EtherXtend provides compellingly flexible and manageable Ethernet products over copper or fiber from a single platform and using a common management system.

As market leader in it's class, the MALC delivers carrier class reliability and scalability of the most widely required services deployed by carriers today including POTS, DSL and legacy special services. By simultaneously offering Ethernet service options on the same chassis, the MALC allows these new services to be added with only the addition of a line card. No overlay network or retraining of technical is staff required.

Also announced today was Zhone's Indoor/Outdoor Residential Gateway including 2/4 Ethernet Ports, 2 FXS Ports to support VoIP services and HPNAv3 over copper or coax to support IPTV services. Importantly, Zhone's leading technology solutions not only set the standard for packet and fiber migration, but also maintain support for current market requirements including both DTMF Touch Tone and Pulse Dialing and Loop Start support for both FXS and FXO.

Ethernet is found increasingly today in homes, offices, schools libraries as well as in carrier's transport networks. Among the last vestiges where Ethernet remains absent is in the access network that connects the service provider's network with the subscriber. Zhone's comprehensive EtherXtend Ethernet solutions enable carriers to reach virtually any customer location and allow rapid provisioning of native Ethernet services ranging from megabits to gigabits.

"With the rapid proliferation of bandwidth-hungry Ethernet applications, service providers are looking for elegant ways of delivering high bandwidth Ethernet services that their subscribers demand," said David Markowitz, vice president of marketing for Zhone. "Zhone's EtherXtend products allow service providers the flexibility to deliver Ethernet everywhere over both copper and fiber."

Zhone's EtherXtend products are EFM standards compliant to deliver point-to-point Ethernet connectivity over the WAN. EtherXtend transports Ethernet directly over copper or fiber making it easy for subscribers to interconnect LANs over virtually any distance. These transparent LAN services allow businesses with broadly distributed remote offices to operate as if located on the same local network. By providing the broadest range of bandwidth requirements, service providers can offer a wide array of revenue generating bandwidth-intensive services and applications that their customers demand.

Related Information

• Zhone's Active Ethernet Products
  

About Zhone Technologies

Zhone Technologies, Inc. (NASDAQ: ZHNE) is a global leader in all IP multi-service access solutions, serving more than 750 of the world's most innovative network operators.

The IP Zhone is the only solution that enables service providers to build the network of the future…today, supporting end-to-end Voice, Data, Entertainment Social Media, Business, Mobile Backhaul and Mobility service.

Zhone is committed to building the fastest and highest quality All IP Multi-Service solution for its customers.

Zhone is headquartered in California and its products are manufactured in the USA in a facility that is emission, waste-water and CFC free.

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