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Press Release

Zhone's Metro Wi-Fi System Honored by NXTcomm EOS Awards for Technology Innovation

Oakland, CA — June 10, 2008 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in multi-service access solutions, today announced that Zhone's new metro Wi-Fi system, SkyZhone((TM)) has been honored by NXTcomm's Eos awards for technology innovation in access networking.

(Note to Editors: Zhone will be featuring SkyZhone at NXTcomm in booth SU5611. See today's release title: Zhone Debuts Game-Changing Metro Wi-Fi Solution)

The SkyZhone system features a number of industry firsts for metro Wi-Fi including, 802.11n, an all-MIMO antenna architecture, integrated DSL backhaul and line powering. The net effect is a Wi-Fi system that cost effectively delivers high-capacity, high-reliability, multi-service networks.

"We're delighted that SkyZhone was selected by the Eos Awards committee as the first place finalist in the access category," said Steven Glapa, vice president of marketing and product management for Zhone. "Wi-Fi is the most ubiquitous wireless interface and SkyZhone offers network operators an excellent opportunity to easily integrate high-reliability Wi-Fi to support devices that are already plentiful in their service footprints."

"This year's Eos winners demonstrated the best and most promising advancements to the network-enabled voice, video and data ecosystem," said Wayne Crawford, NXTcomm Executive Director. "We congratulate Zhone for its leadership, innovation and role in driving our industry forward."

SkyZhone is currently in trials or already deployed in more than 10 networks globally, supporting numerous applications including municipal public safety, video surveillance, consumer-use broadband access, and campus/resort environments.

For more information, please visit http://www.zhone.com/skyzhone

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

NXTcomm

About NXTcomm: NXTcomm has replaced SUPERCOMM. The Telecommunications Industry Association (TIA) and the U.S. Telecom Association (USTelecom), the two organizations that owned and produced SUPERCOMM for 18 years, have joined forces again to produce NXTcomm, which replaces SUPERCOMM as the one event delivering the entire ecosystem of network-enabled voice, video, and data. NXTcomm08 comes to the Las Vegas Convention Center June 16-19 and will co-locate with InfoComm08, the leading audiovisual business-to-business marketplace. For more information, go to www.NXTcommShow.com.

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