Press Release

Launch of Zhone FiberCell™ Portfolio Enhances Zhone's Mobile Backhaul Solution with New FTTx Capabilities

New solution expands industry-leading MXK reach to offer operators more flexibility in copper and fiber backhaul options

Oakland, CA — March 22, 2011 — Zhone Technologies, Inc. (NASDAQ:ZHNE), a global pioneer in FTTx network access solutions, today introduced its Zhone FiberCell™ portfolio, a carrier-class mobile backhaul solution designed to address mobile operators' increased bandwidth needs in today's data-centric service environment. With the convergence of Internet, wireless and broadband services redefining network requirements, solutions within the new Zhone FiberCell portfolio – in combination with the MXK™ platform – will offer high-performance bandwidth resources to help operators manage higher traffic loads on their existing network infrastructure.

Specifically, the Zhone FiberCell portfolio features alternative backhaul options that give operators the flexibility to choose between copper and fiber, including Ethernet in the First Mile (EFM), Gigabit Passive Optical Network (GPON) and Active Ethernet (AE). By leveraging the operator's existing and new infrastructure, Zhone FiberCell offers the most cost-effective and highest-performance solution for optimal backhaul capability. With these enhanced scalability and mobile support capabilities, operators using Zhone FiberCell solutions for mobile backhaul can anticipate a fast evolution to next generation 3G and 4G networks and services.

"Packet backhaul is absolutely a necessity in today's world of smart devices and increased bandwidth demands," explained Brian Caskey, chief marketing officer of Zhone. "The mobile operators investing in backhaul services rely on IP-based platforms like Zhone FiberCell to offer added flexibility, deliver higher speeds, share resources, ensure seamless management and provide cost-effective scalability. Timing is critical in mobile backhaul and Zhone FiberCell is designed to provide seamless service."

Regardless of the option an operator utilizes, each Zhone customer benefits from efficient deployments and smooth transitions with the combined MXK and Zhone FiberCell solution. For example, operators using EFM can reduce costs significantly while increasing backhaul bandwidth by eight times (8x) the existing T1/E1 backhaul alternatives. The transition to GPON or AE results in exponentially more bandwidth capacity depending upon the network configuration.

In the initial phase, the Zhone FiberCell portfolio will feature three new products, including:

  • Zhone FiberCell MXK Uplink Cards providing integrated timing over packet support, including IEEE 1588 v2 and the ability to accept standard-based timing over Ethernet (SyncE) and external sources including GPS Clock input via the MXK

  • Two Zhone Network Interface Device (zNID) Optical Network Terminals (ONT) (zNID-GE-9480 and zNID-GPON-9480) providing 9 Gigabit Ethernet (GE) LAN, 8 T1/E1, and IEEE 1588 Timing Recovery

In addition, Zhone customers benefit from the Zhone's advanced management capabilities via Zhone Management System (ZMS) upgrades and Zhone EZ Touch Provisioning.

"With the moves to fiber by mobile backhaul transport providers, Zhone's new FiberCell products will make their MXK customers and other service providers take note. FTTx solutions such as this can help protect operators' network investments long-term," explained Michael Howard, principal analyst, Infonetics Research. "Based on our research, we expect that service provider spending on mobile backhaul equipment will exceed $36 billion for the 2010-2014 years worldwide. The reduced cost structure of Zhone's backhaul products should help optimize network traffic flows for wireless operators and translate into additional revenue for wireline service providers."

Zhone has deployed over 1000 of its fully redundant, carrier-grade all-IP MXK platforms with more than 100 service providers globally. Featuring industry-leading density, scalability and switching capacity, the MXK is the industry's first terabit access concentrator and provides non-blocking capacity of up to 3,600 100 Mbps GPON subscribers or 360 1G Active Ethernet subscribers.

For more information about Zhone FiberCell portfolio please visit www.zhone.com/solutions/mbackhaul/. The product suite will also be demonstrated in Zhone's booth #2037 at CTIA Wireless 2011 in Orlando, Fla., March 22-24, 2011. For more information about the MXK solution specifically, please visit www.zhone.com/products/MXK/.

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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Forward-Looking Statements
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