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Zhone Technologies Multi-Service Access Platform Selected by Cavalier Telephone and TV

One of the Largest Full-Service Competitive Providers in the US Chooses Zhone's MSAP as its Premier Three On Platform

Oakland, CA — October 24, 2007 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global provider of advanced communications equipment and a leader in enabling VoIP, IPTV, and Ethernet over copper and fiber access lines, today announced that Cavalier Telephone and TV, one of the largest full-service competitive communications providers in the United States, has selected Zhone's multi-service access platform (MSAP) as its premier Three On TM service solution (Three On is Cavalier's brand name for Triple Play bundled service packages for TV, Internet and Phone). After a phase-one deployment of Zhone's market leading MALC™, Cavalier announced that Zhone's MSAP will serve as the select platform for future network-wide Three On deployments.

Founded less than 10 years ago, Cavalier has grown to 650,000 lines, serving a 16 state region. Cavalier Telephone and TV has remained at the forefront of addressing the digital divide in the United States, bringing twenty-first century voice, video, and ultra high-speed data to business and residential customers. Cavalier's customers now benefit from highly competitive rates for what is among the fastest broadband service networks in the US.

"Cavalier requires keen responsiveness from our vendors and exceptional value that we can pass along to our customers," said Brad Evans, Executive Chairman for Cavalier Telephone and TV. "By delivering the full range of Three On services with a single compact system, Zhone's platform provides both the agility and efficiency we require, so we can ensure our customers high value and fast provisioning of the industry's most advanced services."

Zhone's MALC simplifies the provisioning and management of the full range of multi-play services. Designed for today's evolving network infrastructures, Zhone's consolidated platform strategy enables Cavalier to deliver voice, video, and data services from a single high density, compact, and cost effective MSAP architecture, all provisioned, monitored, and controlled through a single management interface. The density and flexibility of Zhone's MSAP significantly reduces the installation time and general operational expense for Cavalier.

"Cavalier Telephone and TV provide a model of excellence in service provisioning for the entire carrier industry," said Mory Ejabat, Chief Executive Officer for Zhone Technologies. "Cavalier's all-IP network has made premium triple play both available and highly affordable while ensuring exceptional profitability for Cavalier."

About Cavalier Telephone and TV

Founded in 1998, Cavalier Telephone and TV is a full-service, rapidly growing Competitive Local Exchange Carrier (CLEC) operating in 16 states including the District of Columbia. Cavalier has 650,000 lines and over $1 billion in fiber optic networking assets using state-of-the-art technology to offer high-quality phone, Hi-Speed Internet and Digital Television to business and residential customers. Cavalier also provides services to government and wholesale customers. Visit www.cavtel.com for more information.

About Zhone Technologies — Access for a Converging World

Zhone Technologies, Inc. (NASDAQ: ZHNE) is a provider of advanced communications equipment to more than 600 operators worldwide. The company's broad line of access and transport networking solutions enables the full range of multi-play services, including residential and business broadband, VoIP, IPTV, and Ethernet. Zhone's converged access platform improves network agility and reduces costs, allowing operators to rapidly deploy premium services on their existing copper and fiber infrastructure while providing a seamless migration path to an efficient, all-IP network. www.zhone.com

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