Press Release

Zhone Technologies Awarded for Best Practices in Product Innovation

Zhone's FiberSLAM C/DWDM Access Platform Garners 2007 Product Innovation Award from Frost and Sullivan

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Oakland, CA — June 5, 2007 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global provider of advanced communications equipment and a leader in VoIP, IPTV, and Ethernet over copper and fiber access lines today announced that it has received the 2007 Award for Product Innovation from the global growth consulting company Frost & Sullivan. Zhone received the product innovation award for FiberSLAM, a new Wave Division Multiplexing (WDM) access platform designed to drive ultra high-speed optics deeper into the access network. By bringing WDM closer to the subscriber premise service providers can address massive capacity requirements to meet demand for FTTx, mobile backhaul and enterprise services today, while ensuring capacity to provision services such as HD media and video on demand into the future.

FiberSLAM 105 provides up to 12.5 Gigabits (Gbps) of capacity via dedicated wavelength channels, making it ideal for multi-service delivery. Designed for today's hybrid network infrastructures, the platform supports traditional TDM services (T1/E1 and DS3) or all-Ethernet in a single Rack Unit (1RU) environmentally hardened platform for cell tower and remote terminal deployments.

Award recipients are selected for outstanding achievement and leadership in technological innovation, customer service, and strategic product development. In addition to FiberSLAM, Frost & Sullivan acknowledged Zhone's ongoing contribution to access networking, noting the company pioneered the fast-growing Broadband Loop Carrier (BLC) product category.

"A major challenge in this market is to create products that provide new revenue opportunities for service providers, while ensuring compatibility between new and traditional technologies in the carrier network,” said Shirley Hunt, strategic analyst for Frost & Sullivan. “Zhone has clearly shown that it uses product innovation as a method to gain market share and be competitive in a rapidly changing market."

"Zhone is focused on introducing new products that help access providers deliver next generation services in the most practical way possible," said Eric Presworsky, vice president of product management and advanced technology for Zhone. "We believe innovative products are the result of working closely with our customers."

For more information on Frost & Sullivan's Best Practices Awards, visit www.awards.frost.com.

Related Information

About Zhone Technologies – Access for a Converging World

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™).

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