Press Release

Zhone Technologies Expands GPON Portfolio with RFoG

Zhone Partners with Alloptic for Advanced Video Entertainment Services over RF Networks

Oakland, CA — February 18, 2009 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in single-platform delivery of voice, DSL, EFM, FTTx and wireless broadband services, announced today that it will expand its Gigabit Passive Optical Network (GPON) portfolio through a strategic agreement with Alloptic, Inc., the recognized leader in Radio Frequency over Glass (RFoG) solutions. Integrating RFoG with Zhone's standards-based GPON system boosts available spectrum and enables carriers to deliver advanced digital video services without replacing existing analog video headend equipment. The partnership ensures Zhone customers the greatest flexibility in delivering up-to-the-minute entertainment services including interactive programming, video on demand (VOD) and pay-per-view (PPV) over RF-based video networks. Integrating GPON and RFoG allows carriers to pace migration to all-digital networks while ensuring a seamless consumer experience.

"Zhone's integrated GPON - RFoG solution helps carriers realize the multiple efficiency gains inherent to GPON while maximizing service depth and revenue opportunities," said Steven Glapa, vice president of product management and marketing for Zhone. "Integrated GPON - RFoG enables intelligent processes like targeted ad placement, content aware programming and Layer 3 management - all critical to increased carrier revenues and ultimately the quality of experience for the subscriber."

"Enabling 2-way RF services is vital to network operators," said Shane Eleniak, Alloptic VP of marketing and business development. "With RFoG, interactive video and differentiated services are delivered while lowering operational costs and continuing to use existing RF assets. Alloptic is pleased to join Zhone in providing these key competitive features in an integrated GPON - RFoG solution."

About Alloptic, Inc.

Alloptic develops and delivers optical access solutions that enable CATV, telecom, and private network operators to offer converged, communications, entertainment, security, and automation services for both businesses and residential customers. The company is the clear market leader in RF over glass (RFoG) solutions and worldwide deployments. Alloptic's history of innovation dates back to its founding in 1999, including numerous passive optical network (PON) patents worldwide that have fundamentally advanced the capabilities and performance of passive optical-based networks. For more information about Alloptic, please visit http://www.alloptic.com.

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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