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Zhone Technologies to Report Fourth Quarter 2006 Financial Results

Oakland, CA — January 4, 2007 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global provider of advanced communications equipment and a leader in VoIP, IPTV, and Ethernet over both copper and fiber access lines, announced today that the company will report its fourth quarter 2006 financial results on Thursday, January 25, 2007, after the close of regular market trading.

Zhone will conduct a conference call and audio webcast to discuss further details of its fourth quarter 2006 results at approximately 2:00 p.m. PT / 5:00 p.m. ET on Thursday, January 25, 2007. This call is open to the public by dialing +1 (866) 700-6293 for U.S. callers and +1 (617) 213-8835 for international callers and then entering passcode 11277115. The audio webcast will be simultaneously available on the Investor Relations section of Zhone's website at http://www.zhone.com/about/investors/ .

A replay of the conference call will be available for approximately one week after the original call by dialing +1 (888) 286-8010 for U.S. callers and +1 (617) 801-6888 for international callers and then entering passcode 90551835. An audio webcast replay will also be available online at http://www.zhone.com/about/investors/ for approximately one week following the original call.

About Zhone Technologies, Inc. (www.zhone.com)

Zhone Technologies, Inc. (NASDAQ: ZHNE) is a global provider of advanced communications equipment to more than 600 operators in both emerging and established markets. Zhone’s market-leading Broadband Loop Carrier equipment enables operators to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to a cost-efficient, all-IP access network. The company’s products address a broad range of applications including residential and business broadband, VoIP, IPTV, and Ethernet over both copper and fiber access lines.

Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS™), Multi-Access Line Concentrator (MALC™), Raptor™ ATM/IP DSLAMs, Zhone Residential Gateways (ZRG™), GigaMux™ Optical Transport Systems and Zhone Management System (ZMS™). For more information, please visit www.zhone.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.