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About Zhone
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Press ReleaseZhone Technologies Announces Completion of Sale and Leaseback of its Oakland CampusOakland, CA — September 29, 2010 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global pioneer in FTTx network access solutions, announced today the completion of the previously announced sale of its Oakland campus, consisting of land and three buildings, to LBA Realty, LLC for approximately $18.8 million in cash. Nearly all of the proceeds were used to pay off the existing debt on the campus. The Company has agreed to rent one of the buildings from LBA Realty for a five-year term. As a result of the transaction, Zhone expects its cash net of debt obligations to improve by approximately $18.0 million and its total cost of occupancy to decrease by over $1.5 million per year. 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, the Zhone logo, and all Zhone product names are trademarks of Zhone Technologies, Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change without notice.
Forward-Looking Statements
This press release contains forward-looking statements that are subject
to the safe harbors created under the Securities Act of 1933 and the
Securities Exchange Act of 1934. Words such as "anticipate,"
"believe," "continue," "could,"
"estimate," "expect," "goal,"
"intend," "may," "plan,"
"project," "seek," "should,"
"target," "will," "would," variations of
such words, and similar expressions are intended to identify
forward-looking statements. In addition, forward-looking statements
include, among others, statements that refer to the expected financial
impact of the sale-leaseback transaction. Readers are cautioned that
actual results could differ materially from those expressed in or
contemplated by the forward-looking statements. Factors that could cause
actual results to differ include, but are not limited to, the
possibility that the sale-leaseback transaction may not result in the
cash improvements or cost reductions that the Company anticipates;
commercial acceptance of the Company’s products; intense competition in
the communications equipment market; the Company’s ability to execute on
its strategy and operating plans; and economic conditions specific to
the communications, networking, internet and related industries. In
addition, please refer to the risk factors contained in the
Company's SEC filings available at www.sec.gov, including without
limitation, the Company's annual report on Form 10-K for the year
ended December 31, 2009 and quarterly reports on Form 10-Q for the
quarters ended June 30, 2010 and March 31, 2010. Readers are cautioned
not to place undue reliance on any forward-looking statements, which
speak only as of the date on which they are made. The Company undertakes
no obligation to update or revise any forward-looking statements for any
reason. |
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