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Press Release

Télébec Selects Zhone Technologies for Deployment of New Multi-Service Access Platform

Zhone Platform to Support Télébec's IMS Initiative

Bécancour, Québec — April 2, 2008 — Télébec, Québec's leading regional telecommunications company, and Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in supplying multi-service access technology for VoIP, IPTV and Ethernet over copper and fiber access lines, today announced the successful deployment of Zhone's MALC™ Multi-Service Access Platform (MSAP) as a key component of Télébec's new Voice over IP (VoIP) service offering.

"Télébec is committed to delivering highly innovative IP-based services to our business and residential customers," said Claude Vachon, Télébec's chief technology officer. "Zhone's platform provides superior interoperability along with the feature breadth and service dexterity in line with our philosophy of value and innovation. Responsiveness and commitment to service excellence were also key decision factors over competing platforms," Mr. Vachon said.

Zhone's MALC MSAP is supporting a joint partnership between Télébec and Metaswitch to introduce state of the art digital voice services throughout the region. Zhone's MALC is a key component of this multi-vendor end-to-end VoIP solution as it provides the interface to each customer line. Télébec's ultimate goal is to integrate IP services like Voice on an IMS (IP multimedia subsystem) for highly sophisticated call processing.

"The Télébec network strategy is a model for evolving networks and maximizing the advantages of pure-packet infrastructures through IMS and content layer integration," said Eric Presworsky, chief technology officer for Zhone Technologies. "Zhone is committed to delivering Télébec intelligent platform technologies that deliver the highest value for innovative IP services."

About Télébec, Société en commandite

With the strength of its 750 employees, Télébec, Société en commandite and its subsidiaries offer integrated and innovative telecommunications solutions in 300 Québec municipalities. Totaling 750,000 square kilometers, Télébec's territory is bounded to the north by la Baie-James, to the south by Venise-en-Québec near the U.S. border, to the west by Ville-Marie en Abitibi-Témiscamingue and to the east by the Magdalen Islands. More information about Télébec and its subsidiaries is available at www.telebec.com.

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 multi-service 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

Contacts:
Investors
Tel: +1 510-777-7013
Fax: +1 510-777-7001
Email: investor-relations@zhone.com
   Media
Tel : +1 510-777-7020
Fax : +1 510-777-7001
Email: public-relations@zhone.com
   Alain Danault
Telebec Director Communications & Public Affairs
Tel: 819. 233.6073
Mobile: 819.352.9199
E: adanault@telebec.com
  
  

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Zhone's Single Line Multi-Service architecture (SLMS™), allows carriers to concurrently deliver voice, new premium data and video services over copper or fiber access lines.
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