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Zhone's Platform Selected by foreThought.net for Network Evolution to Multi-Service Access Strategy

Fast-Growth CLEC Cuts Total Cost of Ownership by Over 50 Percent through Single Platform Provisioning of EFM, Voice, and ADSL2+ Services

Oakland, CA — August 5, 2008 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in multi-service access solutions, today announced that foreThought.net, a leading Denver-based CLEC and Internet Service Provider has selected Zhone's MALC Multi-Service Access Platform (MSAP) to provision premium EFM business services in addition to voice and ADSL2+ throughout Denver and Colorado Springs. Prior to implementing Zhone's MSAP provisioning strategy, foreThought.net utilized three disparate platforms from three separate vendors to provide EFM, voice, and DSL services to its business and residential customers.

"As we move to the next stage of company growth, it's imperative that we can count on our vendors to deliver and grow with us," said Jawaid Bazyar, president and CEO of foreThought.net. "Zhone listens carefully to our needs and consistently delivers what and when they say they will. Building out our network with Zhone's integrated solution portfolio also lays a great foundation for enhancing our service mix while reducing our cost structure and maintaining highly competitive rates."

ForeThought.net is one of the largest providers in the region and recently quadrupled its service footprint, making it the fastest growing operator serving Denver and Colorado Springs. The company's access offerings include premium EFM business services, public Wi-Fi and a full suite of voice and DSL services.

Zhone's EFM solution enables ForeThought.net to deliver speeds up to 2 to 28 times greater than T1 data rates at a comparable price. ForeThought.net is also provisioning ADSL2+ and voice using Zhone's MALC high-density combo line card. The net result minimizes training and field service, while reducing space and power consumption for a total cost of ownership savings of over 50 percent. With Zhone's MALC, foreThought.net also has the option of provisioning IP video and Wi-Fi services via one integrated network architecture.

"In addition to sizeable operational efficiencies, our integrated access network strategy provides foreThought.net a new level of network agility and manageability," said Steven Glapa, VP of marketing and product management for Zhone. "The foreThought.net team will be able to leverage their Zhone infrastructure to drive rapid service innovation for years to come."

About foreThought.net -- Communications Simplified

Founded in 1995, foreThought.net is one of the largest locally owned service providers in Colorado. foreThought.net provides business and residential customers full service communications solutions including voice, ultra high-speed data, public Wi-Fi and a competitive suite of Internet hosting, email and e-commerce solutions. For more information, visit: www.forethought.net.

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

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