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Zhone Announces MXK Terabit-Scale MSAP for Next Class of FTTx Services

Clean-Sheet Architecture Sets New Industry Benchmarks for Non-Blocking Bandwidth, Service Intelligence, and Intuitive Management

Oakland, CA — June 16, 2009 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in access solutions, announced today its MXK intelligent terabit access concentrator line, a category-defining addition to the company's family of carrier-class multi-service access platform (MSAP) products. The new MXK platforms feature a 2x bandwidth improvement over the closest competitor -- with non-blocking capacity of up to 3,600 100 Mbps GPON subscribers or 360 1G Active Ethernet subscribers per chassis -- while leveraging Zhone's well-proven SLMS access operating system for sophisticated service intelligence and ease of management.

Accelerating shifts in subscriber expectations that move ever more traffic from broadcast video to unicast multi-stream HD, video on demand, and immersive games are placing unprecedented demands on access networks. A truly scalable response to these demands requires a clean-sheet approach to access network architecture -- an approach Zhone has pioneered with the MXK platforms. With an initial focus on FTTx applications, the MXK line sets new benchmarks for the industry in a number of areas:

• Upgradability to 1 Terabyte switching capacity by uplink replacement alone
  
• Unrivaled efficiency, supporting up to 9,216 GPON ONTs or up to 360 point-to-point Active Ethernet subscribers in each 8 RU chassis
  
• A range of redundant uplink options from 4 Gbps to 56 Gbps, for optimum network design
  
• Deployment flexibility, with 3 RU x 19", 8 RU x 19", and 8 RU x 23" chassis models
  
• A rich complement of SLMS software features for advanced networking, quality of experience, voice, and security driven by 8 years of commercial operation and collaboration with 700+ service providers worldwide -- including EAPS, layer 3 routing, traffic policing, rate shaping, dynamic bandwidth allocation, and multicast group management
  
• Smart OMCI, a truly standards-compliant implementation of GPON ONT management that offers proven multi-vendor interoperability and, as part of the Zhone Management System, comprehensive, intuitive management for FTTx networks
  

"Zhone has paired high performance with impressive efficiency gains in the MXK for indeed a new benchmark in high capacity service provisioning," said Teresa Mastrangelo, principal analyst of Broadbandtrends.com. "As traffic demands grow exponentially, this level of scalability and the ability to intuitively manage a broad range of services are key to giving network operators the readiness to compete and the headroom to innovate."

"The MXK represents a genuinely new path forward in access network architecture," said Steven Glapa, vice president of product management and marketing for Zhone. "Pairing raw streaming-media bandwidth with intelligent, nuanced management of traffic gives operators a powerful platform to deliver a new class of media services."

Zhone's MXK platforms are available now. They are proving their value through early deployments in a number of customer networks all over the world, and market activity around the new line is rising quickly.

Related Information

• Zhone Technologies Sees Strong Customer Demand for Benchmark-Setting MXK Platform
  

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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