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Zhone Technologies Completes Testing Under The IBM System Storage Proven™ Program

Oakland, CA — April 18, 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 its GigaMux products have successfully completed interoperability testing with IBM’s System Storage products and has been confirmed as IBM System Storage Proven. The IBM System Storage Proven program builds on IBM’s already extensive interoperability efforts to develop and deliver products and solutions that work together with third party products.

"This program helps enhance the value and credibility of Zhone’s Optical Product solutions to the end user customer," said Chris Garcia, Product Manager for Zhone “Our participation in the program demonstrates that Zhone and IBM are each focused on customer satisfaction by promoting greater interoperability.”

Zhone’s GigaMux® optical transport system offers carriers unmatched flexibility and control, providing the full range of transport interfaces and capabilities. The GigaMux supports a variety of simultaneous single-wavelength and WDM architectures, including point-to-point, OADM linear, and OADM ring configurations; supporting access, metro and regional distances. GigaMux supports both CWDM and DWDM in the same chassis, on the same fiber, utilizing the same form factor for all modules. This maximizes service flexibility and greatly reduces sparing and inventory costs.

GigaMux Optical Service Level Management provides comprehensive management of optical WDM topologies including ring and mesh, as well as graphical presentation of both the physical and logical network topologies. Zhone’s ColorValve technology enables one module to transport OC-3/STM-1, OC-12/STM-4, OC-48/STM-16, GbE, and FC services and choose between any of these via point-and click commands. This not only reduces truck rolls and related operational costs, but also allows GigaMux simpler sparing and inventory schemes.

Zhone’s In-Wavelength Management technology provides superior management communications among network elements without the need for costly optical supervisory channels, and overkill for the types of services being considered.

With Zhone’s extensive single-service and multi-service transponder options, the GigaMux provides the required interface flexibility for whatever network expansions a carrier faces in the future. In addition, Zhone’s flexible filter architecture supports both fixed wavelengths assignments and ROADM for software provisioned light-path pass-through and termination.

The IBM System Storage Proven program supports the ability of independent hardware and software vendors to build high-quality solutions with the latest technology on leading storage platforms as well as reduce solution design time when multiple, tested building blocks have already been pre-tested.

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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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.