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Zhone Technologies to Present at 9th Annual Needham & Company Growth Conference

Oakland, CA — January 3, 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 Chairman and Chief Executive Officer Mory Ejabat will present at the 9th Annual Needham & Company, LLC Growth Conference on Tuesday, January 9, 2007 from 3:00 to 3:30pm EST in New York at the New York Palace Hotel.

Zhone will conduct a live webcast of the presentation. To access the webcast over the Internet, please go to http://www.zhone.com/about/investors/ . Rebroadcast of the presentation will be available shortly after the conclusion of the session and can be accessed over the Internet at http://www.zhone.com/about/investors.

About Zhone Technologies, Inc.

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.