Press Release

Zhone's MALC Selected by Excella Communications to Deliver EFM and ADSL2+ Business Services throughout Las Vegas and Greater Nevada

Excella Cites Platform Agility, Support for Future Services and Simplified Operations in Selection Criteria

Oakland, CA — October 28, 2008 — Zhone Technologies, Inc. (NASDAQ: ZHNE), the global leader in single-platform delivery of voice, DSL, EFM, FTTx and wireless services, announced that Las Vegas based service provider, Excella Communications, has selected Zhone's MALC™ to support the company's EFM and high-speed DSL service expansion. Excella recently installed the MALC with EFM and ADSL2+ line cards and is currently adding ADSL2+ bonding to its service portfolio.

"Offering multiple services over one efficient platform provides a competitive advantage and a wide open growth path," said Jason Koenders, COO for Excella Communications. "As the only locally owned provider serving Las Vegas, operational efficiency and the ability to move fast provide a critical advantage."

Excella's COO stated that the MALC's installation and training were fast and intuitive and post install, a Zhone technician provided a personalized orientation showing the full range of advanced features now available to Excella. Zhone provides the only system to enable the provisioning of voice, Active Ethernet, GPON, EFM, ADSL2+ and Wi-Fi services from one compact, power efficient platform with one integrated management system.

"The MALC ensures that growing operators like Excella can quickly and easily expand service offerings while keeping total ownership costs extremely low," said Steven Glapa, Zhone's vice president of product management and marketing. "The savings in equipment, power, field training and back office management enable the delivery of highly selective services both intelligently and affordably."

About Excella Communications

Excella Communications is Las Vegas' only 100% locally owned and operated fully integrated solutions-based telecommunications and network services provider. Excella allows small to mid-sized businesses to utilize the most technologically advanced voice and data business communications features on a secure, reliable network without purchasing expensive on-premise equipment. Excella provides local and long distance service, high-speed data and Internet access, hosted VoIP telecommunications service (fully unified messaging features and fully hosted PBX services, simultaneous cell phone ring, Web click-to-dial, visual voicemail to e-mail and fax to e-mail), and private Wide Area Network (WAN) services in a simple, understandable and cost-competitive package. All services are provided via Excella's own network equipment and managed locally to assure top performance and rapid service response. Excella works together with reputable IT networks to manage its customers' services over a private IP facilities based network. For more information, visit www.excellacom.com.

About Zhone Technologies -- Access for a Converging World

Zhone Technologies, Inc. (NASDAQ: ZHNE) is a global leader in multi-service access network solutions, serving more than 700 of the world's most innovative network operators. The company offers the industry's broadest fully-integrated portfolio of MSAP, FTTx, EFM and Wi-Fi access technologies, enabling a full suite of services, including residential and business broadband, VoIP, and High-Definition IPTV. Zhone's converged multi-service access platform helps operators rapidly deploy premium services using copper, fiber, and wireless while improving network agility and reducing costs. www.zhone.com

Contacts:

Zhone Investor Relations
Tel: +1 510-777-7013
Fax: +1 510-777-7001
Email: investor-relations@zhone.com
   Zhone Public Relations
Tel : +1 404-460-8578
Email: aurora.arlet@edelman.com
   Jason Koenders
Excella Communications
Tel: 702 888.1005
JasonK@excellacom.com
  

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