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Zhone Underscores Strong FTTx Growth with 18 New zNID Optical Network Terminals for GPON and Gigabit Ethernet

Wire-speed architecture delivers best-in-class data throughput regardless of packet size

Oakland, CA — June 15, 2010 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in network access solutions for fiber, copper and wireless broadband infrastructures, today followed its market growth announcement with the introduction of eighteen new zNID optical network terminals (ONTs) for GPON and Active Ethernet deployments.

(Editor's Note: Please see Zhone's release dated June, 7, 2010: Zhone Recognized as a Leading Global GPON Vendor by Infonetics Research and Dittberner Associates)

These newest additions to the zNID-42xx product line provide a 10x performance improvement over earlier models, while optimizing service provider's ONT costs for a wide variety of deployment configurations.

Based on a wire-speed router architecture, Zhone's new ONTs deliver best-in-class data throughput regardless of packet size to support the most demanding FTTx applications. All new models provide dual 1Gigabit Ethernet LAN ports, two or four voice ports with support for SIP, SIP-PLAR and MGCP Voice over IP protocols. This gives service providers an elegant migration path from legacy to softswitch architectures without replacing ONTs.

The latest generation of HPNA chipset for home networking is performance optimized with flexible provisioning over phoneline and coax. Active Ethernet models provide an SFP uplink that supports a wide variety of Active GigE transceivers for even greater deployment flexibility. GPON models are available with and without support for downstream RF Video or RfoG. All models are manufactured in Zhone's USA production facility and are available immediately.

"Zhone continues to gain momentum with the MXK and the newly expanded zNID line," said Teresa Mastrangelo, Principal Analyst for Broadbandtrends. "Zhone has made impressive gains in FTTx globally, particularly in EMEA and CALA where it now ranks among the top three GPON vendors. Besides the inherent product strengths of the MXK and zNID line, Zhone benefits greatly from its ability to address global markets."

"Zhone's MXK and zNID solution deployment is outpacing the industry today due primarily to the immense value delivered to our customers," said Brian Caskey, CMO for Zhone. "Service providers are constrained by bandwidth and the ability to provision new advanced applications seamlessly and cost-effectively. Zhone is helping address the pain points of our customers and helping build their network of the future, today."

Zhone's MXK and zNIDs for FTTx provide a cost efficient, high performance solution for delivering sophisticated services to large numbers of subscribers. In addition to twice the capacity of the closest competing platform, the MXK provides industry-leading density, supporting up to 9,200 users per chassis. For service providers, this means lower bandwidth costs and lowered costs per subscriber. Paired with Zhone's zNID optical network terminals service providers extend network intelligence directly to the subscriber location resulting in fine-tuned performance and remote operations and management. End-to-end network intelligence enables carriers to evolve from bandwidth providers, to communications and entertainment services providers, increasing value and quality of experience for their customers along with average revenue per subscriber.

For more information about Zhone's MXK and zNID FTTx platforms, call (877) Zhone-20 (946-6320 or visit http://www.zhone.com/products/znid/

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 MXK, zNID, FTTx and GPON Solutions estimates and projections of growth. 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, commercial acceptance of our products; intense competition in the communications equipment market; our ability to execute on our 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 Zhone's quarterly report on Form 10-Q for the quarter ended 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. Zhone undertakes no obligation to update or revise any forward-looking statements for any reason.

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 our 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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