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Zhone, B.A.S.E. Technologies and Telecom Bonaire Partner to Introduce First GPON and VDSL2 Services to the Dutch Antilles Territory in the Caribbean

Worldwide MXK Sales Grow to 360 Systems

Oakland, CA — May 19, 2010 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in network access solutions for fiber, copper and wireless broadband infrastructures, today announced the incumbent operator for the Island of Bonaire has selected Zhone's MXK and zNID platforms to deliver Fiber to the Home (FTTH) services to greenfield locations throughout the island territories. Telefonia Bonairiano N.V., (Telbo) cited platform performance, capacity and the flexibility to add future services in the winning selection criteria. The Telbo win further expands Zhone's strong presence in the Caribbean.

With a 480 Gbps pure-IP backplane and 4.6 Terabits of switching capacity, the MXK gives Telbo industry-leading throughput and subscriber density in a high performance platform. When paired with Zhone's zNID optical network terminals (ONTs), Telbo has integrated security, sophisticated traffic management and a powerful suite of automation features exclusive to Zhone's GPON and Active Ethernet FTTH system.

Telbo will also repurpose its pervasive copper infrastructure with VDSL2 using Zhone's Bitstorm HP (High Performance) platforms designed to deliver multi-stream high-definition video and immersion entertainment media over copper. Cost optimized and ideal for multi-tenant unit installations, Bitstorm HP provides 24 ports in a 1RU form factor delivering up to 100/100 Mbps symmetrical services on each port with full ADSL2+ support. Telbo will use Zhone's recently announced MXK EFM line cards for remote customer locations.

"Zhone's product portfolio helps network operators grow from simple bandwidth and phone providers into full-scale service providers offering sophisticated business solutions and smart home networks outfitted for interactive media and immersion entertainment," said Christophe Lucas of B.A.S.E. Technologies, Zhone's channel partner serving the Dutch Antilles region of the Caribbean.

"Telbo will be first in the island territories to deliver fiber to the home services with GPON and VDSL2 giving our customers the ultimate telecommunications and entertainment services," said Gilbert de Bree, General Manager of Telefonia Bonairiano N.V. "When we installed our fiber optic network, we knew FTTH would be the future. It was a matter of waiting for an FTTH platform technology that had evolved and matured. The MXK is that platform."

"Now barely into the third quarter of its release, Zhone has already shipped a staggering 360 MXK systems worldwide," said Brian Caskey, CMO for Zhone. "With the industry's highest capacity FTTH platform and the sophisticated provisioning power of the zNID ONT suite, we believe we offer service providers a compelling opportunity to upgrade to FTTH."

About Telefonia Bonairiano N.V.

Telbo N.V. (telbo.an) was established on March 23, 1983 as the only local company offering telecommunication services for the local market on Bonaire. Always seeking new, innovative services that add value to its customers' lives, Telbo has evolved from being a local telephony operator, to a full service Internet communications and entertainment service provider. The Telefonia Bonairiano IPTV service is branded "mitv".

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.

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