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Zhone Technologies Signed by QCOL to Provide Next-Generation Access for FTTH Triple-Play Network

MXK platform to provide 2,000+ subscribers access to triple-play services in Northeast US

Oakland, CA — July 6, 2011 — Zhone Technologies, Inc. (NASDAQ:ZHNE), a global pioneer in FTTx network access solutions, today announced a new customer, QCOL, a western Pennsylvania-based internet services and triple play provider since 1998. QCOL will deploy Zhone's industry leading MXK™ as its primary Gigabit Passive Optical Network (GPON) access platform for the new fiber-to-the-home network it is building to deliver triple-play services to customers.

Specifically, Zhone's MXK solution will equip QCOL to deliver affordable and reliable high speed Internet access, VoIP and video services to more than 2,000 subscribers across Fayette County, Pennsylvania, Garrett County, Maryland and Preston County, West Virginia, all in the northeastern United States beginning in August 2011. The widespread system capabilities of Zhone's MXK platform benefit both QCOL and its subscribers, including utilization of up to one gigabit (1GB) capacity in the home and the ability to support the extreme bandwidth demands generated by multiple high-definition television (HDTV) screens, high definition digital video recorder (HD-DVR) content and video streaming within the home. The system scalability and flexibility of the MXK help future-proof the network for more advanced service rollout while also reducing recurring operating expenses (OPEX) and any adverse customer impact from rollout of these next-generation services.

"The residential and business customers we serve are demanding increasing amounts of bandwidth. We sought a solution to address not only current but future bandwidth requirements," explained Brian Frazee and Doug Friend, owners of QCOL. "We selected Zhone for the impressive density offered by 8-port GPON cards, along with the MXK's superior scale, effective network management capabilities and system flexibility to support multiples services in the same chassis. We were extremely intrigued by the cost savings anticipated for us and our customers."

Zhone has leveraged deep experience in managing the complexity of multi-service access to build the industry's most comprehensive portfolio of FTTx solutions. With QCOL delivering Radio Frequency (RF) video over fiber and the MXK's ability to support the same via either Passive Optical Network (PON) or point-to-point Active Ethernet, the MXK was an ideal fit for this project. QCOL is also deploying Zhone's zNID™ Optical Network Terminals (ONTs) for the end-points.

"Zhone's MXK continues to meet the needs – and exceed expectations – of our customers. Service providers benefit from a near customized offering to satisfy their needs for a high performance access solution. Industry leading flexibility, scalability and a fully integrated management system makes the MXK platform an ideal solution for the growing bandwidth needs of our customers," explained Brian Caskey, chief marketing officer for Zhone. "Our solutions remain a critical piece to the puzzle of customer satisfaction for operators around the world. We are very pleased to begin a new relationship with QCOL and help enable advanced connectivity in the Northeast region."

Zhone has deployed over 1,350 of its fully redundant, carrier-grade all-IP MXK platforms with more than 100 service providers globally in over 40 countries. 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's MXK solution or to learn more about the other solutions offered in the new Zhone FiberHome™ portfolio, please visit http://www.zhone.com/products/MXK/ or http://www.zhone.com/solutions/fttn/.

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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