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Zhone Technologies Selected by Blatzheim Networks Telecom GmbH for Company's Triple Play Service Initiative

Zhone Selected for The Full Range of Access Services from One Feature-Rich Platform

Oakland, CA — January 8, 2008 — 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 bn:t Blatzheim Networks Telecom has selected Zhone's multi-service access platform (MSAP) for its triple play service roll-out. Based in Bonn Germany, bn:t Blatzheim Networks Telecom currently provides voice and data services to more than 20 cities throughout Germany. The company has selected Zhone's MALC MSAP to expand its access portfolio to include IPTV. In addition to advanced digital media, Zhone's MSAP strategy enables bn:t Blatzheim Networks Telecom to provision the full range of xDSL services, Voice over IP and/or traditional voice, and carrier grade Ethernet from one feature-rich platform.

"Zhone is an acknowledged leader in the MSAP category and provides the full breadth of services coupled with high-port density in an efficient form factor," said Mr. Guenther Blatzheim, managing director for bn:t Blatzheim Networks Telecom GmbH. "Zhone's MALC provides us the highest degree of service flexibility enabling a low risk entry into IPTV provisioning."

"As a fast-growing service provider, bn:t Blatzheim Networks Telecom requires a platform strategy that is both adaptable and rapidly scaleable to new services," said Cesare Sironi, vice president of Europe for Zhone. "The multi-service platform approach enables bn:t Blatzheim Networks Telecom to generate revenue more efficiently on existing services while ensuring on-demand provisioning for its growing IPTV market."

Noted for reliability and service excellence, bn:t Blatzheim Networks Telecom has provided network services throughout Germany for 15 years.

About bn:t Blatzheim Networks Telecom GmbH

bn:t offers a wide range of voice, access, data center and virtual private network services to business customers all over Germany as well as to private customers, however, on a regional level. bn:t is a full-fledged carrier operating its own network infrastructure. bn:t is interconnected to many of Europe's and Germany's top industry players and has more than 15 years of experience in the telecommunications market.

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 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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