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Press Release

Zhone Technologies Introduces New zNID GPON Product Portfolio at Leading Industry Tradeshows

ONT portfolio expansion at FTTH and BBWF complements recent MXK 194/198 launch to provide multi-service, high bandwidth connectivity for customers globally

Oakland, CA — September 27, 2011 — Zhone Technologies, Inc. (NASDAQ:ZHNE), a global leader in FTTx network access solutions, today announced the immediate availability of its new zNID 24xx GPON Optical Network Terminals (ONTs). As part of ongoing efforts to increase cost efficiency and service differentiation, these new indoor zNID GPON ONTs with rich features and functionality are optimal for both Greenfield and expansion FTTx networks globally, and leverage features and best-in-class performance delivered by Zhone's widely deployed 42xx series outdoor zNIDs. Zhone will showcase the new zNID ONTs at the FTTH Conference in Orlando, Fla., Sept. 26-30, 2011 and at Broadband World Forum 2011 in Paris, France, Sept. 27-29, 2011.

"Zhone continues to leverage its deep experience in managing the complexity of multi-service access to build the industry's most comprehensive portfolio of FTTx customer premise equipment for GPON and Active Ethernet standards," emphasized Brian Caskey, chief marketing officer of Zhone. "We believe ongoing product expansion, including the latest zNID GPON ONTs and the newly announced MXK 194 and MXK 198 1U GPON OLTs, will enhance Zhone's leadership position in the industry and highlight our continued focus towards technology innovation. As the industry leverages high-bandwidth fiber, Ethernet and advanced copper connectivity to enrich user experience, Zhone is committed to introducing high performance FTTx products and solutions that will continue to differentiate the offerings of our customers globally. The new series of zNIDs provide a highly competitive price point while providing a compelling solution for complex triple-play applications."

With converged multi-service solutions for home and business needs, the new product line integrates and leverages Zhone's FTTx product portfolio including Zhone MXK™, Zhone Management System (ZMS™) and Zhone EZ Touch Provisioning System™. The new zNID 24xx indoor residential ONT products, with support for the ITU-T G.984.5 enhancement band standard and built in wavelength blocking filters, ensure that service provider networks are next-generation GPON-ready.

The new zNID GPON 24xx family now includes the following six products, all providing GPON uplinks, targeted at the indoor residential market segment:

• ZNID-GPON-2402: 2 GE LAN ports
• ZNID-GPON-2403: 2 GE LAN ports, RF Video
• ZNID-GPON-2424: 2 POTS ports, 4 GE LAN ports
• ZNID-GPON-2425: 2 POTS ports, 4 GE LAN ports, RF Video
• ZNID-GPON-2426: 2 POTS ports, 4 GE LAN ports, WiFi, USB
• ZNID-GPON-2427: 2 POTS ports, 4 GE LAN ports, WiFi, USB, RF Video

For more information about Zhone's zNID ONT product family or to learn more about the various applications please visit the new CPEs portfolio on the Zhone website.

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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