Press Release

Zhone Announces Newest Member of the IMACS Product Family, the IMACS 200

Integrated Solution for Advanced Voice and Data Applications

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Oakland, CA — June 22, 2006 — Zhone Technologies, Inc. (Nasdaq: ZHNE), the first company dedicated to building total-delivery solutions for voice, data and content services worldwide, announced today the introduction of the IMACS 200 to it’s existing IMACS product line.

Optimized for the unique needs of electric utilities, the IMACS 200 system supports a wide range of specialty traffic, including transmission line protection control (EIA-232 electrical and IEEE C37.94 optical), SCADA, surveillance video, substation automation and alarms, radio, Ethernet and telephony.

The IMACS 200 system offers a powerful array of integrated network diagnostic and fault isolation capabilities. These include Bit Error Rate Testers, test tone and signaling state generation, digital and analog loop back-support, and remote configuration and control. IMACS 200 meets stringent standards criteria, such as IEEE 1613, RoHS, and CE, which means it can be deployed anywhere in the network.

Optimized for electrical utility sub-station applications, the IMACS 200 supports the latest IEEE C37.94 standard for data over fiber that is so critical to the secure operation of the electrical grid. Zhone's IMACS 200 can be deployed in harsh environments where conventional communications devices would not survive. Its smaller size and lower price points establish a new competitive benchmark. And its commonality with the Zhone IMACS family means minimal training and familiarization for existing IMACS customers.

"The concept of an integrated one box solution for advanced voice and data applications began with the introduction of the IMACS," said Joe Fortin, associate vice president of Zhone's TDM products group. "With more than 80,000 systems deployed worldwide, the IMACS is an established leader in the access marketplace. The IMACS 200 extends that tradition with an integrated solution optimized to economically address smaller port size applications."

An array of the most popular interfaces and features from the IMACS has been bundled into a small 2U chassis providing the ultimate in ease of installation. However, small in size, does not mean small in feature content. Interfaces ranging from legacy RS-232, V.35, plus 2 and 4 wire analog voice, as well as the more modern Ethernet and C37.94 optical are all supported from the same access device, along with a flexible cross connect fabric for maximum use of existing T1 facilities.

Reliable communications are vital to any organization. The IMACS 200 addresses this need while providing compact size, low cost, and a high level of voice and data integration. This makes it an ideal choice for providing a variety of services to small end points and remote locations in any modern telecommunications network.

Related Information

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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