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Zhone Introduces Industry's Most Comprehensive ONT Portfolio for Snap-to-Fit Provisioning of Differentiated FTTx Services

Zhone Adds Powerful Suite of Automation Features to Cut Time, Cost and Complexity of FTTx Service Delivery

Oakland, CA — October 6, 2009 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in network access solutions, today announced the addition of 24 new zNID models for the industry's most comprehensive ONT (Optical Network Terminal) portfolio. Zhone's snap-to-fit approach means less equipment costs, tighter network integration and targeted service differentiation on the full range of FTTx applications, from distinctive corporate business communications to residential triple-play and mobile backhaul. Zhone's new ONT line includes a powerful suite of automation features to cut installation times and provide ultimate flexibility in the field.

Leveraging fundamental design advancements of the MXK, Zhone's zNID ONTs are optimized to support the shift to unicast media streams that require enormous amounts of dedicated bandwidth. New ONTs serve a vital role in carrying extreme traffic as managed network elements in FTTx architectures. Just as important, application-specific devices enable maximum service differentiation, helping operators to grow revenue opportunities and lock in competitive advantage.

"Because ONTs represent the majority of electronic equipment costs in FTTx networks, selecting the right customer-premise devices for GPON and Active Ethernet isn't only essential for sound network design, it can be a make or break decision for network operators," said Steven Glapa, Zhone's VP of product management and marketing. "Working with our MXK customers around the world provides us the right mix of practical insight and innovation and ultimately inspires the hard work required to reach the highly competitive position this product line holds."

Zhone zNIDs cover the full spectrum of operator needs from simple, low-cost devices for entry-level triple-play, to sophisticated models for high-end business services, mobile backhaul and multi-dwelling units.

Highlights include several industry firsts:

• Zhone Auto Provisioning -- Zhone zNIDs are the only ONTs with Auto Provisioning to gives technicians greater flexibility in the field while streamlining installs and cutting deployment times.
  
• Smart OMCI -- Zhone zNID's are the only ONTs with Smart OMCI, Zhone's standard's based GPON ONT management interface for ease of operations in GPON networks, and superior interoperability in multi-vendor environments.
  
• Any Port - Any Service -- Zhone zNIDs are the only ONTs to take the flexibility of the MSAP model to the CPE.
  
• zNID CPE Manager -- Intelligently automates operations for simplified management and greater network control for Ethernet devices. Includes automatic configuration and activation, enhanced inventory tracking, centralized reporting, configurable back up and restores and managed software upgrades.
  
• Snap to Fit Configuration for Tighter Network Integration and Maximum Service Differentiation -- 27 feature-rich models cover a wide variety of form factors (indoor, outdoor, single-multi-unit) and customer-side physical interfaces for both Active Ethernet and GPON networks (including POTS, 10/100 Fast Ethernet, Gigabit Ethernet, T1/E1, RF video, HPNA, packetized RF return, and RFoG); voice interop through SIP, H.248, MGCP, GR-303, and V5.2; and the options of full NAT, firewall, and residential gateway functionality*.
  
• Zhone's Single-Line, Multi-Service (SLMS) access operating system -- Combines sophisticated service intelligence with intuitive management and a wealth of FTTx networking features. Includes flexible traffic management, enhanced security, and feature-rich voice networking for differentiated service offerings.
  

"The breadth of Zhone's ONT options is a key reason we selected them for our FTTx initiative," said Ms. Sok Channda, President and CEO of MekongNet, who is launching an extensive fiber deployment in Cambodia. "Combined with the impressive non-blocking bandwidth of the MXK, the ability to precisely match our requirements for customer premise equipment and service configuration creates real competitive advantage for us."

"Zhone's ONTs were instrumental in the successful launch of our landmark network project," said Dennis D'Amico, president of Estracom who recently announced an ambitious green initiative to modernize municipal network services throughout Italy's Tuscany region. "Smart OMCI, the ONT auto-provisioning features and the superior management functions all combine to simplify installation and allow hands-off management from the central office for across-the-board efficiency gains."

"Requirements differ substantially between applications as well as across geographies and service provider segments, making Zhone's total ONT suite timely as the market for FTTx continues to expand," said Vince Vittore, Yankee Group's Principal Analyst-Enabling Technologies. "With the new zNID portfolio, and the introduction of the MXK earlier this year, Zhone has significantly evolved the FTTx state of the art."

For more information about zNID ONTs, please visit to www.zhone.com/products/znid/ or call
+1 (877) Zhone-20 (946-6320).

*Not all physical interface options and features are available on all models. See http://www.zhone.com/products/znid/ for a full profile of configuration details.

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.

Contacts:

Investors Tel: +1 510-777-7013 Fax: +1 510-777-7001 Email: investor-relations@zhone.com		Media Tel : +1 510-777-7020 Fax : +1 510-777-7001 Email: public-relations@zhone.com

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