Press Release

Zhone’s MSANs Selected by UAE’s Integrated Telecom Service Provider du for Single-Platform Provisioning of Voice, ADSL2+, EFM and Active Ethernet

Oakland, CA — June 8, 2010 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in network access solutions for fiber, copper and wireless broadband infrastructures, today announced that du (DFM:EITC), an integrated telecom service provider in the UAE, has opted for Zhone's Multiple Access Line Concentrator (MALC) Multi-service Access Node (MSAN) to deliver a broad suite of sophisticated IP access services to its increasing fixed access customers. du selected Zhone's MALC to provide voice, Ethernet in the First Mile (EFM), ADSL2+ and ISDN BRI over IP to its residential and business customers as part of its IP network initiative.

The MALC enables du to rapidly migrate to new IP services without stranding end-customers or network assets. For instance, in addition to the full range of IP services, the MALC enables du to provide ISDN BRI over IP which ensures end-users can preserve investments in existing PBX equipment. du is using Zhone's MALC with full integration and interoperability of voice services (POTS & ISDN). In addition to successful integration and interoperability, du selected the MALC based on platform performance and service breadth. Zhone provides a versatile MSAN platform to deliver voice, Active Ethernet, GPON, EFM, ADSL2+ and Wi-Fi services from one compact, power efficient platform with one integrated management system.

"Our vision is to deliver both our existing and new customers all services over IP while ensuring their investment protection," said Tariq Al Bahri, VP-Fixed Access Networks of du Telecom. "Zhone's multi-service platform allows us to offer a wide breadth of services from a single box."

"As a company, du is extremely forward-looking with a need to deliver fast time-to-market services today while ensuring open service options well into the future," said Hakim Alhusan, Zhone's VP of Middle East and Africa. "We're pleased to be selected by du as a vendor partner and eager to contribute to an infrastructure build that is poised to serve as a global model for IP access networking."

About du

du, the integrated telecom service provider in the UAE, launched mobile telecommunication services in February 2007 across the UAE, in addition to internet and pay TV services that du provides in some of the free zones of Dubai. Call Select, du's nationwide fixed line services for voice telephony, was launched in July 2007. By the end of 2008, over 3 million people in the UAE chose to become du customers.

Among du’s many firsts is its historic Number Booking Campaign for both individuals and business, Pay by the Second billing system, Mobile TV, Mobile Payments, first of its kind ‘WoW’ recharge card (which offers customers the choice between more credit, more time and now ‘more international’ recharge option with additional credit on international calls) and Self Care.
For business customers, du business offers include Closed Business User Group and preferred International Destinations. du Broadcast Services division brings scalable media technology platforms and telecommunication solutions to the broadcast community through its world class teleport (Samacom) and Master Control Room (MCR) facilities.

du products and services for consumers and business are available through du’s retail network, currently numbering 33 du shops located in strategic locations across the UAE, more than 3000 authorized dealers Or through du e-shop, accessible at http://www.du.ae/en/where-to-buy/eshop.html. du shops are a one stop shop for mobile service, carrier select and the payment of the service bills.

du is 39.5 percent owned by the UAE Federal Government, 19.75 percent by Mubadala Development Company, 19.5 percent by Emirates Communications & Technology Company LLC and the remaining stake by public shareholders. It is listed on the Dubai Financial Market (DFM) and trades under the name du.

Awards to date
• du presented with an award for Best Middle Eastern Local Currency Deal 2008 by UK’s EuroWeek
• du won two prestigious awards at UAE Web Awards 2008. du e-shop portal won the best strategic online portal award in the e-commerce category and du media club website won the bronze award in the media and press category.
• du corporate brand launch campaign awarded a Cristal MENA award in 2008
• du declared ‘Best Brand’ at Telecoms World Awards Middle East 2007 for innovative branding and outstanding brand success
• Second place in the New Brand Launch category at the GMR Effectiveness in Marketing Awards 2007
• Silver Award for the best website in the ICT category at the UAE Web Awards 2007
• du WoW TV Commercial awarded amongst the best 50 TV commercials in mobile telecom category in the world for 2007

For further information, please contact du:
Saugat Chatterjee
Public Relations Manager, Channels Communications
Brand & Communications, du
Mobile: +971 55 9367045
Email: saugat.chatterjee@du.ae

Mayssam Hamadeh
Manning, Selvage & Lee
Tel: +971 4 3676 324
Mobile: +971 55 495 6484
Fax: +971 4 367 2615
Email: mayssam.hamadeh@dubai.mslpr.com

About Zhone Technologies

Zhone Technologies, Inc. (NASDAQ: ZHNE) is a global leader in multi-service access solutions, serving more than 750 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 resulting in improved network agility and reduced costs in 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 manufactured in the USA in a facility that is emission, waste-water and CFC free.
Bandwidth Changes Everything™ http://www.zhone.com

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