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Zhone Technologies Selected by MC-link as Total Solution Provider for State-of-the-Art IP Networks in Milan and Rome

Zhone Selected for Service Excellence and Integrated Platform Intelligence for EFM, ADSL2+, DS3/E3, and WDM Network Services

Oakland, CA — November 6, 2007 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global provider of advanced communications equipment and a leading supplier for VoIP, IPTV, and Ethernet over copper and fiber access lines, today announced that MC-link, a multi-regional operator headquartered in Rome, Italy, has selected Zhone as its total solution provider from network access to optical transport. In addition to voice services, ADSL2+ and WDM optics, MC-link is among the fast growing ranks of service providers deploying Zhone's high-density EFM line card for its flagship MALC™ multi-service access platform (MSAP). Zhone's EFM solution enables MC-link to quickly deliver fiber-grade business services over voice grade copper, including high revenue E3/DS3 and Transparent LAN Service (TLS). Editors note: See Zhone release dated 10.09.07 "Zhone Introduces Industry's Most Comprehensive EFM and Ethernet over Copper Product Portfolio."

"At MC-link we believe the best solutions offer new opportunities and Zhone's approach clearly exemplifies this philosophy," said Cesare Veneziani, CEO for MC-link. "Zhone's MALC helps us offer a wider range of services at a greater value to our customers. Just as importantly, Zhone is a proactive partner with a deep understanding of customer service."

MC-link currently provides value added business services to 150,000 professional users. Today, over 90 percent of all local telephone exchanges in Rome connect to MC-link's fiber backbone. Zhone's Gigamux™ WDM gear will support the company's expansion throughout the Milan Metro. MC-link will deploy Zhone's multi-service MALC to quickly roll out business xDSL offerings while introducing high-value EFM services at up to 45Mbps symmetrical bandwidth over standard copper phone lines. In addition to superior agility and efficiency in a feature rich access platform, Zhone's MALC enables MC-link to provision premium businesses services quickly and affordably. Advanced layer intelligence includes auto discovery and traffic prioritization for simplified provisioning of quality sensitive services for MC-link's business customers.

"Consolidating access services on a single platform and management system allows MC-link to radically simplify its network inventories and field operations while ensuring rapid response to customer demand," said Cesare Sironi, vice president of the Europe, Middle East, Africa (EMEA) region for Zhone. "MC-link is a valued customer and we share a company vision to deliver service solutions that are among the richest and most complete on the market."

About MC-link

Founded in 1986, from its inception MC-link has been committed to the evolution of the Internet and delivering its customers state-of-the-art broadband services at the greatest value. Today, 90 percent of the local telephone exchanges in Rome connect to MC-link's fiber backbone with expansion underway in Milan.150,000 professional users rely on MC-link for value added business communications services. MC-link is certified ISO 9001, and ISO 14001 in compliance with eco-sustainable technology practices.

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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