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Zhone Unveils First Set of New FTTN, FTTC, FTTB and FTTP Products for Zhone FiberHome™ Portfolio

First phase of portfolio launch features solutions that extend and complement the market-leading MXK access platform, ensure cost-effective delivery of bandwidth-intensive applications to traditionally challenging and expensive service areas

Oakland, CA — February 8, 2011 — Zhone Technologies, Inc. (NASDAQ:ZHNE), a global pioneer in FTTx network access solutions, unveiled today the details of its new Zhone FiberHome™ portfolio, a compilation of the company's existing fiber-to-the-home (FTTH) access solutions and new last-mile fiber-to-the-node (FTTN), fiber-to-the curb (FTTC), fiber-to-the-building (FTTB) and fiber-to-the-premise (FTTP) connectivity solutions.

The Zhone FiberHome portfolio, – an extension of Zhone's existing FTTx solution portfolio that features the market-leading MXK™ Optical Line Terminal (OLT) and Multi-Service Access Node (MSAN) platform, MX Optical Network Units (ONU), zNID™ Optical Network Terminals (ONT), Residential CPEs and Gateways, and Zhone Management System (ZMS™) platform – will now be strengthened with six new products. These new products, now available in the first phase of the Zhone Fiberhome portfolio launch, are designed to mitigate the challenges global operators are currently facing with last-mile broadband access and connectivity.

Targeting the traditionally challenging and expensive service locations for residential and business users, including rural areas and multi-dwelling units (MDU), the FTTN, FTTC, FTTB and FTTP products will provide VDSL2 and Active Ethernet connectivity in the last mile in a 1U form factor that provides cost-efficiency benefits for operators expanding their multi-service access capabilities. More specifically, some of the new products include the MX 1U SLMS based chassis portfolio, which provides high-speed copper VDSL2 30a and wire-speed Active Ethernet connectivity with Gigabit Passive Optical Network (GPON) and Fast Ethernet/Gigabit Ethernet (FE/GE) uplinks; a new high-performance VDSL2 + Splitter card for the MXK platform; and a new VDSL2 residential gateway. The MX products include a user-friendly web interface for device configuration, monitoring and management and deliver a complete end-to-end broadband solution for both fiber and copper access infrastructures:

• MX-160: A 1U Single Line Multi-Service (SLMS) based platform providing 24-port VDSL2 30a high-speed Copper to the Premise (CTTP) connectivity with ADSL2+ fallback, 4x FE/GE uplink ports, optional POTS splitters

• MX-260: A 1U SLMS based platform providing 24-port VDSL2 30a high-speed CTTP connectivity with ADSL2+ fallback, 3x FE/GE and 1x GPON uplink ports, optional POTS splitters

• MX-180: A 1U SLMS based platform providing 24-port FE wire-speed Ethernet to the Premise (ETTP)connectivity, 4x FE/GE uplink ports

• MX-280: A 1U SLMS based platform providing 24-port FE wire-speed ETTP connectivity, 3x FE/GE and 1x GPON uplink ports

• VDSL2 + Splitter Card: An enhancement to the MXK platform with the introduction of a new high-performance 24-port VDSL2+ Splitter 17a card, to complement the recently introduced 24-port VDSL2 17a card and 24-port VDSL2+ POTS 17a combo card

• 6718-A1 VDSL2 Modem: A new VDSL2 17a Residential Modem with ADSL2+ fallback providing support for 4 LAN ports, 802.11n and USB 2.0

"Global consumer demand for advanced connectivity has put extreme pressure on operators to sustain the quality and reliability of their service levels despite the strains being placed on their networks by today's rapidly expanding and highly bandwidth-intensive applications," said Brian Caskey, chief marketing officer, Zhone. "This need to increase the efficiencies of last-mile access to not only improve network performance, but really extend the reach of the advanced broadband services, has prompted Zhone to expand its next-generation broadband access solutions portfolio. Our new products are already being well received by our customers and we're encouraged that the FiberHome portfolio is the right approach to addressing operators' reach, connectivity and advanced bandwidth needs worldwide."

Operators worldwide are already utilizing Zhone's new FTTC, FTTN, FTTB and FTTP access solutions to extend their fiber and copper reach and deliver multi-play services to residential and business customers in otherwise challenging and expensive service areas. Zhone's newly launched products are currently in global market trials with operators, and some customers are already benefiting in the early deployment stages.

"At Uniserve Communications, the MX-162 has enabled us to extend the reach of our network in the Greater Vancouver area," noted Tom Samplonius, vice president of network operations and technology, Uniserve Communications. "Our customers are primarily residents in MDUs and business users in commercial and shopping centers. Using VDSL2, we have upgraded our network to provide a high-bandwidth service offering that improves the quality and reliability of the end-user experience. Zhone has helped us deliver a solution that will provide our customers with high-speed connectivity while cost-effectively addressing our network migration challenges to support critical bandwidth needs today and in the future."

For more information about Zhone FiberHome portfolio please visit http://www.zhone.com/solutions/fttn/. The product suite will also be demonstrated in Zhone's booth #S13 at the FTTH Conference 2011 in Milan, Italy, February 9-10, 2011. For more information about the MXK solution specifically, please visit http://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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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.

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