Press Release

Zhone Technologies Demonstrates Flagship MXK™ and zNID™ Solutions, Reinforces Regional Leadership at Broadband World Forum 2010

Traction in Europe and Middle East regions driving company success and momentum

Oakland, CA — October 18, 2010 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global pioneer in FTTx network access solutions, announced today its participation in the Broadband World Forum 2010. The company will showcase its flagship MXK™ multi-service access node (MSAN) and indoor Network Interface Device (zNID) gigabit passive optical network (GPON) solutions in Paris, October 26-28, 2010, and highlight best practices for FTTx deployments based on its market insights and extensive experience in the region.

Zhone has experienced significant global momentum with GPON deployments in 2010, fueled primarily by the need for increased bandwidth capabilities among European and Middle Eastern service providers.

"Both operators and utilities throughout EMEA are beginning to make significant investments in fiber network upgrades in an effort to increase the reliability, speed and competitiveness of their triple-play services," explained Brian Caskey, chief marketing officer, Zhone. "And we recognize that not all service providers are transitioning from the same legacy technologies or trying to reach the same customer demographic. That's why we designed our MXK access system with expanded density and flexibility features that could accommodate such varying needs which, we believe, has been a key contributor to our rapid customer growth in the region."

Industry analyst firms Infonetics Research and BroadbandTrends recently recognized Zhone as a top GPON vendor in EMEA, as well as worldwide, citing reliability, cost-effectiveness and overall customer growth.

"Our future-proof system has proven to be a compelling value proposition for many customers and Zhone continues to outpace the competition particularly in Europe and the Middle East," Caskey continued. "We are very proud of our leadership position in these regions and look forward to exhibiting our capabilities at the Broadband World Forum."

Zhone has shipped more than 600 MXK systems total to over 100 service providers globally with a potential capacity to support over 6 million FTTH subscribers. Zhone's MXK platform is a fully redundant, carrier-grade all-IP platform and the industry's first terabit access concentrator. Featuring industry-leading density, scalability and switching capacity, the MXK provides non-blocking capacity of up to 3,600 100 Mbps GPON subscribers or 360 1G Active Ethernet subscribers.

For additional information about Zhone's MXK or zNID platforms, please visit www.zhone.com or stop by Zhone's booth #J21-J22 at the Broadband World Forum, October 26-28, 2010.

About Zhone Technologies

Zhone Technologies, Inc. (NASDAQ: ZHNE) is a global leader in all IP multi-service access solutions, serving more than 750 of the world's most innovative network operators.

The IP Zhone is the only solution that enables service providers to build the network of the future…today, supporting end-to-end Voice, Data, Entertainment Social Media, Business, Mobile Backhaul and Mobility service.

Zhone is committed to building the fastest and highest quality All IP Multi-Service solution for its customers.

Zhone is headquartered in California and its products are manufactured in the USA in a facility that is emission, waste-water and CFC free.

Contacts:

Zhone Public Relations
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