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Zhone's MXK GPON Selected by Estracom for Green Network Initiative

Estracom in Tandem with Zhone Technologies, Dimension Data and the University of Siena and Florence Launch Green FTTx Network Project

Oakland, CA — September 30, 2009 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in network access solutions, announced today the telecommunications consortium Estracom, working with major IT solutions provider Dimension Data (LSE:DDT) has selected Zhone's MXK terabit access concentrator to deliver GPON services in what has been referred to as one of the most ambitious "Green" initiatives in Italy.

Estracom is a telecommunications consortium representing 24 municipalities serving a half million residents throughout Italy's Tuscany region. Estracom's objective is to provide high quality fiber services to residences and businesses at a low cost per user, all by adopting high-efficiency green technology. Additionally, Estracom intends to supply municipal police a modern video surveillance network to efficiently support the growing economic and security needs of its citizens.

Estracom contracted major IT solutions and service provider Dimension Data and Zhone Technologies to streamline its fiber network in the high-density territory of Prato. Zhone's MXK terabit access platform enables Estracom to connect more than 4,000 GPON users with a single chassis while eliminating all active network elements between the Central Office (CO) and the end-user. Zhone's MXK provides a completely passive optical splitter that can be installed anywhere without the need for power. Eliminating the need for electricity at intermediate points in the network provides optimal energy efficiency, while reducing redundant equipment and the risks of network downtime due to electrical outages.

"With the MXK, we are able to supply Tuscany businesses and residences true broadband through an innovative green network design that will reap enormous dividends in energy savings and environmental conservation," said Dennis D'Amico president of Estracom "Zhone's platform and depth of GPON knowledge were invaluable in the network design and the ultimate success of the project."

"This is a landmark project for Estracom and their green initiative serves as a model for other municipalities undergoing network modernization," said Steven Glapa, Zhone's VP of product marketing and management. "The MXK was developed specifically to improve network efficiencies while meeting rapidly escalating broadband demands associated with shifting user models today and into the future."

About Estracom

Founded in 2001, Estracom is a telecommunications company representing a consortium of 24 municipalities in Tuscany with a user base of more than half a million residents.

About Zhone Technologies -- Access for a Converging World

Zhone Technologies, Inc. (NASDAQ: ZHNE) is a global leader in multi-service access 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, improving network agility and reducing the costs of delivering the full spectrum of access services, including residential and business broadband, VoIP, and High-Definition IPTV -- over copper, fiber, and wireless. Zhone is headquartered in California, and its MSAP products are all manufactured in the USA, in a facility that is emission, waste-water, and CFC free.

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