Press Release

Zhone Adds EFM to Its MXK Platform for Mobile Backhaul Giving Network Operators the Industry's Only Built-In Migration Path from Copper to Terabit-Scale Fiber Access

Zhone's Worldwide MXK Shipments Top 325 Systems in Just over Two Quarters

Oakland, CA — March 23, 2010 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in network access solutions for fiber, copper and wireless broadband infrastructures, today announced EFM line cards for its new flagship MXK multi-service access platform (MSAP). Zhone also cited global shipments for the MXK in excess of 325 systems since announcing the platform just over two quarters ago, with growth of its global customer base to 750 telecom providers worldwide.

MXK with EFM - An Elegant Migration Path to Fiber

Over the next several years, in the U.S. alone, cell site base stations are projected to grow from 200,000 to 300,000. While fiber has made considerable inroads over the past year, approximately two-thirds of Radio Access Nodes (RANs) are still copper fed. Though the gold standard for backhaul is fiber, even if operators could afford to run fiber to every tower, the required labor will take years.

Aggregate forecasts project as many as 5 billion personal devices connecting to mobile networks by 2014. To meet rocketing mobile service demand, providers need practical, high-performance ways to radically boost copper bandwidth now while realizing the enormous cost savings inherent to native Ethernet. At the same time, operators want to ensure a scalable and elegant migration path to fiber.

Zhone's IEEE 802.3ah standard 24 port line card for the MXK enables operators currently served by T1/E1 to upgrade to EFM services while ensuring a ready migration path to fiber. Zhone's MXK with EFM provides a necessary boost in capacity and investment protection with industry's only built-in migration path to a multi-service terabit-scale fiber access solution.

The MXK - A New Generation for Multi-Service Access

The MXK represents a new path forward in multi-service access provisioning, delivering twice the bandwidth capacity of the closest competing platform and architected from inception to accommodate exponential growth over pure-IP networks. A 480 Gbps pure-IP backplane gives network operators 4.6 Terabits of switching capacity and industry leading rack, blade and chassis density with form-factors supporting up to 9,200 subscribers per chassis and 46,000 subscribers per rack. Zhone's unique multi-service Access Operating System software provides a feature-rich interface including touchless EFM provisioning with integrated security and sophisticated traffic management features for greater provisioning flexibility.

"Extremely high-subscriber density, and the ready upgrade path from copper to terabit capacity over fiber makes the MXK a timely play for operators who need to maximize copper assets now while future proofing their positions," said Erik M. Keith, Principal Analyst, Broadband Infrastructure for Current Analysis. "For today, EFM gives operators a cost effective and rapid means of delivering 10 to 45 Mbps to approximately 75% of sites in the US and 80% of sites in Europe that are still underserved by fiber."

"Mobile communications gives access to millions of subscribers worldwide for the first time, providing phenomenal opportunities along with intense bandwidth pressure that will dramatically change the Internet landscape over the next several years," said Brian Caskey, CMO for Zhone. "The MXK is purpose-built to gracefully scale to support and manage astronomical capacity requirements ensuring operator's investment protection and the flexibility to effectively compete in this rapidly changing market."

About The MXK-EFM-SHDSL-24 Port Card with Cross Card Bonding Support

  • Delivers up to 45.6 Mbps to a single end user
  • Delivers up to 13 Mbps per copper pair
  • Provides IP QoS, traffic shaping and dynamic bandwidth allocation
  • Enables touchless EFM provisioning via Zhone's Multi-Service Access Operating System Software

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.

Contacts:

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Email: investor-relations@zhone.com
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