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Zhone Technologies' Board of Directors Approves One-for-Five Reverse Stock Split

Oakland, CA — March 5, 2010 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in network access solutions, today announced that its Board of Directors approved a one-for-five reverse stock split of its common stock which will become effective on or about March 11, 2010. The reverse stock split was authorized by Zhone’s shareholders at a special meeting held on October 16, 2008.

When the reverse split becomes effective, every five shares of Zhone’s issued and outstanding common stock will automatically be combined into one issued and outstanding share without any change in the par value of the shares. Following the reverse split, the number of shares of outstanding common stock of Zhone will be proportionally reduced from approximately 151.4 million to 30.3 million
No fractional shares of common stock will be issued as a result of the reverse stock split. Shareholders of record will receive cash in lieu of fractional shares to which they otherwise would be entitled, based upon the closing price of Zhone’s common stock on the last trading day before the reverse split becomes effective.

For a 20 trading day period beginning on the day the reverse split is effective, Zhone's common stock will trade on a post-split basis under the trading symbol "ZHNED" as an interim symbol to denote the reverse split. After this 20 trading day period, Zhone's common stock will resume trading under the symbol "ZHNE".

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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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.