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Zhone Technologies Enables Working Demonstration of MPEG-4 High Definition IPTV over DSL at IBC

IBC Showcase combines leading technology to deliver practical and cost effective triple play services

Oakland, CA — August 29, 2006 — Zhone Technologies, Inc. (Nasdaq: ZHNE), and its partners Tut Systems and Amino Communications, will be unveiling high quality HDTV broadcast using MPEG-4 Advanced Video Codec (AVC) over xDSL as part of a working IPTV demonstration at IBC September 8-12 at the RAI Congress Centre, Amsterdam on Stand 4.256.

Zhone will feature its MALC Broadband Loop Carrier (BLC) access system for delivering enhanced IP services, including IPTV. Both MPEG-2 and MPEG-4 standard definition and high definition video services will be demonstrated using ADSL2+, VDSL2 and Active Ethernet from a single MALC platform. High speed data and VoIP services will also be included as part of a triple play solution. Zhone will also show its high performance CPE products including ADSL2+ and VDSL2 routers and an Active Ethernet ONT to terminate services at the subscriber.

"The Telco industry has long awaited a practical implementation of HDTV over DSL using MPEG-4 compression", commented Steve Klein, Director Video Solutions for Zhone Technologies. "Zhone is delighted to be among the first to publicly show a fully functional and working demonstration at IBC. The availability of MPEG-4 AVC compression of HDTV over IP alters the playing field in favor of telephone carriers who can now position IPTV over DSL against cable and satellite operators, who have used HDTV as a competitive weapon."

Tut Systems will showcase its Astria® content processor (CP) with its new MPEG-4 AVC HD transcoding solution, along with standard definition MPEG-2 and MPEG-4 AVC compression technology. Astria is a carrier class digital headend system favored and used by telco’s worldwide, with more than 160 Tut-powered IPTV systems deployed today.

Amino Communications will provide its new single chip AmiNET 130 IPTV set-top box that supports MPEG-2/MPEG-4 and HD/SD. Other Amino IP set-top models will also be used as part of the demo.

Other Zhone partners participating in the demo include Minerva Networks, whose middleware will be used to demonstrate IPG, VOD, PVR, Mosaic PIP and Caller ID/TV functionality. Kasenna will provide the VOD system integrated with Minerva demonstrating both standard definition and high definition streaming video.

Visit Zhone at Stand 4.256 to receive a personal demonstration of triple play and BLC capabilities. Zhone will also have on display its’ full line of products including GigaMux WDM optical transport and IPD DSLAM’s.

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.

About Tut Systems, Inc.

Tut Systems, Inc. delivers advanced content processing and distribution products as well as comprehensive system integration services for deploying next-generation data and video services over broadband networks. Service providers, content providers and government agencies worldwide use Tut Systems solutions to deliver broadcast-quality video over broadband networks. Tut Systems is headquartered in Lake Oswego, OR. For more information visit www.tutsys.com or call (971) 217-0400.

About Amino

Amino Communications (www.aminocom.com) supplies the AmiNET™ series of set-top boxes renown for their low-cost and reliability. The AmiNET range materially reduces service operators' capital expenditure, whilst offering the full range of specification required; MPEG2 and MPEG4 encoding standards, standard and high definition TV, personal video recording and home networking. The high performance coupled with the innovative design of Amino's set-top boxes, have brought the series industry accolades and the company a leading position within the IPTV market. Amino Communications is a wholly owned subsidiary of Amino Technologies plc. listed on the London Stock Exchange AIM, symbol AMO. Amino is based near Cambridge, UK, and has offices in Atlanta Georgia and Hong Kong. PR contacts for Amino: Jenna Keighley, EML, +44 (0)20 8408 8000, amino@eml.com

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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.