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Press Release

Zhone's EFM Gear Selected by UK Solutions Provider - Updata for Public Sector Broadband Initiatives

Updata Cites Ease of Support, Configuration and Management of Zhone's EFM Platforms in Selection Criteria

Oakland, CA — December 1, 2009 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in network access solutions, announced today that Updata has selected Zhone's EFM platforms to help meet government sponsored broadband initiatives throughout the UK. Updata designs, builds and manages carrier-class networks for UK public sector institutions including government, healthcare and education. Zhone's EFM platform breadth and ease of management were cited by Updata as winning factors in the selection criteria.

More economical for end-consumers than E1 and fiber, EFM services are ideal for customers who need between 2 Mbps and 20 Mbps symmetric service. As a technology bridge to fiber, Updata foresees strong EFM demand in its business for the next five years. Updata provisions fiber and ADSL2+ services in addition to EFM.

"Updata has experienced explosive growth, doubling its revenues over last year with EFM being core to its business," said Mike Scheck, Zhone's VP of International Sales. "For an unbundled local loop carrier, Zhone equipment provides numerous advantages ranging from multi-vendor interoperability, to superior port density."

"Our experience with Zhone's EFM platforms has been extremely positive and we've found the solutions easy to support, configure and manage," said George Cowan, Head of Operations for Updata. "Our customers benefit from the savings innate to EFM technology, compounded by the sizeable savings in deployment and ongoing management costs associated specifically with Zhone equipment."

Zhone's EFM EtherXtend product portfolio is the largest in the industry, offering feature and interface combinations to suit the full spectrum of customer requirements, from low-cost plug-and-play bridges for mass deployments, to sophisticated service intelligence for carrier and wholesale Service Level Agreements (SLAs). Zhone's EtherXtend line, together with Zhone's multi-service access platforms (MSAPs) and SLMS system software provides network operators enhanced network agility and fast efficient provisioning of feature-rich network services.

About Updata

Updata creates, implements and manages secure, cost-effective high-capacity broadband networks for public sector organizations. Updata's highly skilled network architects have deep experience in all major physical network layers and data transmission mediums. Updata networks are designed and delivered with precision and managed to exacting standards. Updata Infrastructure UK Ltd. was incorporated in 2001. Updata is privately owned with headquarters based in Reigate, UK.

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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