Press Release

Zhone's Bitstorm VDSL2 and ADSL2+ Platforms Selected by StarNet Telecom

StarNet Switches to Zhone's Bitstorm Platforms - Cites Performance and Advanced Features for Video and Data Provisioning

Oakland, CA — February 10, 2009 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in single-platform delivery of voice, DSL, EFM, FTTx and wireless services, announced that StarNet Telecom has selected Zhone's Bitstorm platform for VDSL2 and ADSL2+ deployment. StarNet noted Zhone's industry leading performance and advanced feature support for the full range of data and video services, including multi-stream HD IPTV and VOD.

Powered by the newest media-optimized VDSL2 chipsets, Bitstorm HP (High Performance) is designed expressly for the exacting service demands required for multi-stream high-definition media. Bitstorm HP cross talk management enhances rate/reach performance enabling StarNet to deliver 100/100 symmetrical services, the maximum bandwidth available over single-pair copper today.

StarNet serves a diverse range of business and residential customers throughout Poland and has provided both ADSL2+ and VDSL since 2005. "Given the widening scope of service requirements, we saw a need to standardize on one vendor platform," said Sebastian Kobierecki, technical director of StarNet Telecom. "After evaluating suppliers we selected Zhone based on platform quality, multi-service functionality and value. Bitstorm also allows us to serve VDSL2 and ADSL2+ side by side without installing a separate ADSL concentrator."

StarNet works with Zhone's regional partner Tritech System Technology who assisted with network efficiency planning, cabling and changeover. "We have a long-standing relationship with Tritech who consistently ensure the best value on high performance products," said Mrs. Agnieszka Karpi_ska, a member of the management board. "By linking Bitstorm ADSL2+ and VDSL2 we're able to provide our customers affordability and a fiber-like experience over copper."

About StarNet Telecom

StarNet Telecom was established in 2001 and provides twenty-first century voice, digital video and data services to more than 1,000 companies all over Poland. StarNet offers a broad range of telecommunications services including network design, installation and maintenance of telephone exchanges and full service administration of business networks. StarNet is ISO 9001- 2000 certified.

About Tritech System Technology

Tritech System Technology Company was established in 2003 with the vision of delivering best in class telecommunications solutions backed by advanced networking expertise. Tritech specializes in three main directions: reliable triple play networks, Voice over IP technologies, and interactive videoconferencing. Tritech is an accredited partner of Tandberg, the leader in the field of videoconference equipment. Renowned strategic partners include: Allied Telesis, Foundry Networks, NetCom- Quintum and Zhone Technologies.

About Zhone Technologies -- Access for a Converging World

Zhone Technologies, Inc. (NASDAQ: ZHNE) is a global leader in multi-service access network (MSAN) solutions, serving more than 700 of the world's most innovative network operators. The company offers the industry's only 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. Based in the United States, Zhone's manufacturing facilities are emission, waste-water and CFC free. www.zhone.com

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