Alhambra-Grantfork Telephone Chooses Zhone Technologies’ MXK Platform for FTTH and Multi-Service Deployment

Illinois residents will gain access to higher-speed, higher-quality voice and data services with new fiber network

OAKLAND, Calif.--(BUSINESS WIRE)-- Zhone Technologies, Inc. (NASDAQ:ZHNE), a global pioneer in FTTx network access solutions, today added Alhambra-Grantfork Telephone Company to its customer roster as it expands relationships with regional service providers in the United States. Alhambra-Grantfork Telephone will use Zhone’s MXK™ industry-leading Multi-Service Access Node (MSAN) and Gigabit Passive Optical Network (GPON) solution to offer local residences and small businesses state-of-the-art IP-based services beginning in April 2011. During a five-month trial period that concluded in March 2011, the Zhone MXK demonstrated the impressive flexibility in facilitating network and service upgrades to a multi-service deployment including ADSL2+, VDSL and GPON services off the same MXK, leading to the full-scale deployment currently underway. Once the project is complete, Alhambra-Grantfork Telephone will deliver affordable and reliable high speed Internet access and VoIP services to its customers via a copper and fiber network.

“Our 1,100 line network addresses residential and business customers and it required an increased density and scale, which Zhone provides with its MXK solution,” said Kevin Osterbur, general manager of Alhambra-Grantfork Telephone. “Not only does the system offer increased bandwidth for our customers, but this upgrade promises additional savings and simpler upgrades in the future. The flexibility to support multiple services from the same MXK system and the availability of the 8-port GPON card were key factors in our decision to choose Zhone for our network build.”

Zhone has extensive experience in managing the complexity of multi-service access and, as a result, has built the telecom industry's most comprehensive portfolio of scalable FTTx and multi-service solutions. Zhone was able to provide optimum cost efficiency and maximum service differentiation through the MXK, in combination with the zNID GPON Optical Network Terminals (ONTs) that will be installed at the residence and business sites to support individual subscriber service needs.

“We knew Alhambra-Grantfork Telephone needed a multi-service solution support for both DSL and fiber access solution with cost-effective and enhanced flexibility and scale and that was our primary goal with this project. However, because of our commitment to them as a long-term partner, we are also focused on providing the guidance needed to ensure their investment will support seamless network upgrades now and in the future as new customer demands dictate infrastructure expansions,” explained Brian Caskey, chief marketing officer for Zhone. “It’s clear from our recent North American momentum that the ease of use and flexibility of our fiber access solutions are core strengths that appeal to service providers, and we will continue to adapt our solutions to fit the needs of our customers – and their customers.”

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’s MXK solution or to learn more about the other solutions offered in the new Zhone FiberHome™ portfolio, please visit http://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.

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.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “plan,” “project,” “seek,” “should,” “target,” “will,” “would,” “ultimately”, “validate”, “likely, variations of such words, and similar expressions are intended to identify forward-looking statements. Readers are cautioned that actual results could differ materially from those expressed in or contemplated by the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, commercial acceptance of the Company’s products; intense competition in the communications equipment market; the Company’s ability to execute on its strategy and operating plans; and economic conditions specific to the communications, networking, internet and related industries. In addition, please refer to the risk factors contained in the Company's SEC filings available at www.sec.gov, including without limitation, the Company's annual report on Form 10-K for the year ended December 31, 2010. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update or revise any forward-looking statements for any reason.

CONTACT:

Edelman for Zhone Public Relations
Sara Zavala, +1-702-644-2465
sara.zavala@edelman.com
or
Zhone Investor Relations
Tel: +1-510-777-7013
Fax: +1-510-777-7001
investor-relations@zhone.com

KEYWORDS:   United States  North America  California  Illinois

INDUSTRY KEYWORDS:   Technology  Data Management  Internet  Networks  Software  Telecommunications  Mobile/Wireless  VoIP

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