Press Release

Zhone MDU Solutions Gain Traction with Aggressive Growth CLEC Maskatel in Quebec

Maskatel Cites Zhone's Robust Platform, Superior Interoperability and Plug and Play Installation as Competitive Differentiators

Oakland, CA — June 30, 2008 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in multi-service access solutions, today announced that leading Quebec CLEC Maskatel has selected Zhone's next-generation MALCTM 1U POTS/DSL platform to provide high-speed services to Multi-Dwelling Units (MDUs). Zhone's 1 Rack Unit (RU), 48 port configuration of voice and ADSL2+ ports with Ethernet uplinks is uniquely suited to the MDU play. Maskatel cited Zhone's robust platform, superior interoperability and plug and play configuration as deciding factors against competing platforms.

Zhone's 1U MALC design provides the field-proven performance of Zhone's multi-service access platform with the latest in processor speeds and chipset evolution for both voice and data services. The product is fully triple-play compatible and comes with Zhone's new easy to use embedded web browser, making the system simple to configure and activate.

"Our business is evolving rapidly in a very competitive market space," said Donald Dupuis, president of Maskatel. "We needed a vendor with cutting edge abilities, based on a mature and stable platform that was price competitive and ready to go. We found Zhone to be the triple winner. The platform fits all of our needs right out of the box."

"Maskatel is an ideal customer for the our 1U MALC product design," said Steven Glapa, VP of product management and marketing for Zhone. "We did a lot of active listening before we delivered on the product and it's paying off in real interest based on ease of install, value and feature set. CLECs and IOCs alike are impressed with what we've crafted and the price point. It's not just a game of speeds and feeds, but of making the overall business fit."

About Maskatel, Téléphone Drummond, and Téléphone Guèvremont

Based in Quebec Canada, Maskatel is registered as a Competitive Local Exchange Carrier (CLEC) in Canada. Maskatel has been serving the St-Hyacinthe area east of Montreal since 1996. Since then, it has steadily expanded to serve other localities in Quebec and currently serves about 25,000 customers. Téléphone Drummond is registered as a CLEC and will start its operations in 2007 to serve the Drummondville area. Téléphone Guèvremont is registered as a Small ILEC and offers service covering the Ste-Rosalie area (now part of St-Hyacinthe) in Quebec.

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
     

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.

©2012 Zhone Technologies. All Rights Reserved. | Privacy Policy | Terms and Conditions