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Zhone's USA Manufactured XP Platforms Provide the Industry's Most Competitive Entry into Business EFM and High-Speed Broadband

Zhone's XP 1RUs Give Operators Rapid Deployment and Fast ROI on High-Value HD Video, Voice and Differentiated Data Services

Oakland, CA — March 24, 2009 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in multi-service access solutions, announced today its EXpress Packet (XP) one rack unit (1RU) platform family, giving network operators the industry's most competitive entry into business EFM and premium triple play services. The XP family is based on Zhone's Single-Line Multi-Service (SLMS) access operating system. This gives Zhone XP customers industry-leading price performance paired with ten years of powerful feature development out of the box. Network operators can deliver sophisticated services like intelligent call processing, HD, and video on demand (VOD) over copper with fast return on investment (ROI).

"Zhone's new XP portfolio provides both an accelerated time-to-market proposition and flexible deployment capabilities at an affordable price point," said Erik M. Keith, principal analyst for broadband infrastructure at Current Analysis. "The XP family is a timely offering as network operators are eager to take action on the US broadband mandate to bring universal service to rural and underserved communities."

XP 1RU Platform Family - Designed for Premium Service Delivery and Fast Operator ROI

Built for deployment flexibility and to rapidly scale, XP comes in three models:

1. Raptor XP 170: EFM with support for loop bonding and pseudowire (PWE) traffic transport
2. Raptor XP 150: IP/Ethernet DSLAM with optional built-in POTS splitters
3. MALC XP 150: Compact MSAP with an integrated VoIP gateway for sophisticated call processing.

Zhone's Raptor XP 170: Industry's Most Competitive Entry into EFM

• 24 port SHDSL.bis with 2 Gigabit Ethernet uplinks (copper and fiber)
  
• Serves traditional data over EFM or pseudowire (PWE) over EFM
  
• Bonds up to 8 pairs with hitless adds/drops
  
• Delivers high-value network services including cellular and Wi-Fi backhaul, traffic monitoring/security and symmetrical business services.
  

Zhone's Raptor XP 150 Ethernet/IP DSLAM: High Performance Switching for Bandwidth Intense Services

• 48 ADSL2+ ports with 2 Gigabit Ethernet uplinks (copper and fiber)
  
• XP's non-blocking architecture delivers bandwidth intensive data and video traffic at fiber-speed
  
• Layer 2 features for reliable connectivity and Layer 3 intelligence for traffic prioritization and security enforcement.
  
• Serves HD video, video on demand (VOD) and differentiated IP-based data services
  

Zhone's MALC XP 150: Sophisticated Call Processing in a Stackable 1RU

• 48-port ADSL2+ compact multi-service access platform supports the same data and video features as the Raptor-XP-150 and also serves lifeline POTS voice with VoIP
  
• Integrated voice gateway functionality offers advanced call processing features and comprehensive protocol support (SIP, SIP-PLAR, MGCP, H.248)
  

"The XP family gives network operators the ideal entry point for affordable provisioning of EFM and high-bandwidth triple play," said Steven Glapa, Zhone's vice president of product management and marketing. "Both SLMS and a highly efficient manufacturing model enable us to deliver a very cost effective platform with an industry-leading feature set."

Zhone's manufacturing facilities are based in the US and use the just-in-time approach pioneered by Toyota. The 125-thousand square-foot facility is emission, waste- water and CFC free.

"Zhone is a consistently responsive vendor partner and is highly attuned to our requirements in the field," said Troy Conley, director of network engineering for Consolidated Communications. "The XP products are priced right and timed right, and provide the deployment flexibility to bring high-bandwidth services to virtually any subscriber with a copper line."

Temperature hardened for extreme environments, XP comes with an integrated Web Graphical User Interface for quick service turn up and an optional watertight OSP enclosure for pole, pedestal, or underground deployments. The XP products are also integrated with ZMS (Zhone Management System). With over 5 million ports shipped worldwide, the SLMS access operating system is the common system software for all Zhone platforms and provides network operators a powerful suite of performance features and superior network management and control.

For more information about the XP platform family please visit http://www.zhone.com/promos/xp/ .

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 MSAN, 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 is the only vendor in the field whose MSAN platforms are all manufactured in the USA, and our facilities are emission, waste-water and CFC free. www.zhone.com

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