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Zhone Technologies Renews Credit Facility with Silicon Valley Bank

Oakland, CA — March 16, 2010 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in network access solutions, announced today that it has renewed its credit facility with Silicon Valley Bank. The facility provides working capital financing of up to $25.0 million to support borrowings and letters of credit. Zhone has renewed this facility every year since 2003 on substantially similar terms. Details of the arrangement can be found in the loan agreement and disclosures included in Zhone’s Annual Report on Form 10-K for the year ended December 31, 2009.

"The renewal of this credit facility provides the necessary liquidity for us to continue investing in new technologies," stated Kirk Misaka, Zhone's Chief Financial Officer. "Silicon Valley Bank has provided us with working capital financing since 2003 and continues to be an important financing partner for us."

"We are proud to be able to support our clients over the long haul, through all kinds of business conditions. Silicon Valley Bank has extensive experience working with communications and networking companies of all sizes domestically and internationally," stated Robert Hartinger, Managing Director of Silicon Valley Bank. "With over 60% of Zhone's revenue coming from foreign markets, our knowledge of the industry globally was important in providing Zhone a financing solution that fit its business objectives."

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 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.

About Silicon Valley Bank

Silicon Valley Bank is the premier commercial bank for companies in the technology, life science, venture capital/private equity and premium wine industries. SVB provides a comprehensive suite of financing solutions, treasury management, corporate investment and international banking services to its clients worldwide. Through its focus on specialized markets and extensive knowledge of the people and business issues driving them, Silicon Valley Bank provides a level of service and partnership that measurably impacts its clients' success. Founded in 1983 and headquartered in Santa Clara, Calif., the company serves clients around the world through 27 U.S. offices and international operations in China, India, Israel and the United Kingdom. Silicon Valley Bank is a member of global financial services firm SVB Financial Group (NASDAQ: SIVB), with SVB Analytics, SVB Capital, SVB Global and SVB Private Client Services. More information on the company can be found at www.svb.com.
Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Financial Group is also a member of the Federal Reserve System.

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