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Zhone Technologies and Greenlight Communications Expanding Triple-play Services in City of Dunnellon, Fla.

Dunnellon, Fla. GPON network signifies growth in Zhone's municipality customer base

Oakland, CA — December 1, 2010 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global pioneer in FTTx network access solutions, announced today that Greenlight Communications, a local service provider, has chosen its industry-leading MXK™ multi-service access node (MSAN) system to develop the Gigabit Passive Optical Network (GPON) network in the city of Dunnellon, Fla. Zhone's GPON solution will enable cost-effective, best-in-class triple-play services to Greenlight customers across the municipality, including residents, businesses and facilities like fire departments, city buildings, and police headquarters.

"Greenlight is pleased to offer the Zhone solution for Active Ethernet and GPON connectivity to the city of Dunnellon as a future-proof investment," noted Jessie Mason, general manager of Greenlight. "We chose Zhone based on its industry reputation for the market-leading MXK, its superior density and processing capabilities and exceptional customer support and network planning, allowing the city to take advantage of planned fiber infrastructure for a faster installation of FTTx services."

"The city of Dunnellon is excited about the reality of broadband development providing unlimited potential opportunities for both residents and enterprises," shared F.C. Stark, vice mayor of Dunnellon. "The economic growth implied by this deployment is significant, and we're looking forward to seeing immediate benefits when the FTTx equipment installation is complete."

Relevant aspects of the MXK for Greenlight and Dunnellon were the value of the advanced connectivity, improved network quality and service consistency. In addition, the high bandwidth solution will accommodate data virtualization, video surveillance, telecommuting and additional value-added services in order to generate revenue and encourage ongoing economic development.

"The agreement with Greenlight and city of Dunnellon marks our growing relationships with municipalities nationwide, speaking of our ability to address not just service provider needs, but those of cities as well," said Brian Caskey, chief marketing officer for Zhone. "In addition, Zhone products are made in the USA and the equipment necessary for this deployment will be manufactured in our Largo, Fla. facility."

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. In addition, MXK's ability to support for Active Ethernet and GPON on the same system enables Greenlight to configure its networks with maximum flexibility and efficiency. Zhone's future-proof MXK platform also offers Greenlight multi-access points at highly efficient capacities and costs and enables the utility to seamlessly and cost-effectively integrate additional broadband technologies such as 10G GPON as consumer demand dictate in the future and technologies evolve to support higher bandwidth.

For more information about Zhone's MXK or zNID solutions, please visit http://www.zhone.com.

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.

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