Zhone Technologies to Showcase Advanced New VoIP and IPTV Capabilities at Supercomm 2005; Multi-Softswitch VoIP Solutions and IPTV Featuring HDTV and MPEG-4 AVC Over Copper or Fiber to be Highlighted

Business Wire, June 7, 2005

OAKLAND, Calif. -- Zhone Technologies, Inc. (Nasdaq:ZHNE), the first company dedicated to building total-delivery solutions for voice, data and video content services worldwide, today announced that it will showcase its market leading Multi-Access Line Concentrator (MALC(TM)) and GigaMux solutions at the Supercomm 2005 convention, June 7-9, at McCormick Place in Chicago (booth # 42030).

Zhone's VoIP and IPTV demonstrations will feature standard definition (SD) and high definition television (HDTV) signals over both copper and FTTH networks using International Telecommunication Union's (ITU) passive optical network (PON) technology. Zhone will also be demonstrating both MPEG-2 and MPEG-4 streams, conditional access and interactive gaming in collaboration with its industry leading solutions partners.

Zhone's Supercomm product and technology demonstrations will include a single MALC 319 simultaneously running:

- Converged IP voice, data, and video over both ADSL2  and
              PON
            - Multi-Softswitch VoIP supporting multiple simultaneous
              softswitches
            - MPEG4 and MPEG2 video over ADSL2 
            - HDTV over ADSL2 
            - Interactive video gaming

Also being featured for the first time will be Zhone's recently announced distributed Emergency Stand Alone (ESA) System which allows the MALC product family to provide intra-switching when links to the Class 5 switch are down. ESA eliminates the need for expensive remote switches in most network applications and supports both emergency 911 services and basic local call features such as Caller ID and Call Waiting even when the host switch is inaccessible. Importantly, Zhone's ESA implementation allows for one or more MALCs to participate in an ESA cluster. In ESA mode, subscribers are able to place calls to any party within a single MALC shelf or to any other party connected to a MALC on the same cluster. These clusters are user defined and a given MALC can participate in multiple clusters.

In addition, Zhone will be demonstrating it's new Zhone Management System Embedded (ZMSe), the newest addition to ZMS and its comprehensive suite of management products. ZMSe is a full-featured, web enabled embedded device management tool for element management and service provisioning across Zhone's Single Line Multi-Service (SLMS) products. ZMSe provides carriers with an easy-to-use, cost effective solution for configuring their Zhone network elements including the MALC and Raptor ATM/IP DSLAM. ZMSe is specifically designed for carriers requiring a GUI configuration tool that can be quickly learned and deployed.

As part of Supercomm's conference programs, Zhone will also be discussing best practices in real-world VoIP and IPTV solutions as part of several panels and seminars. These include:

Monday June 6 10:30 a.m.
            Session: USTA IP Video Conference @ SUPERCOMM
            Speaker Stephen Klein
            Title: Studio Requirements and the Impact on Technology
            Decisions
            Location: McCormick Place, S102 - Level 1 South Building

            Monday June 6, 1:00 p.m.
            Session: VoIP Strategies for Service Providers
            Speaker David Markowitz
            Title: New Rules in Telecom Services
            Location: Grand Ballroom, Hyatt McCormick

            Wednesday June 8, 9:45 a.m.
            Session: IEC Communications Forum @ SuperComm (W18D)
            Speaker Stephen Klein
            Title: The Promise of Triple Play Now Hits Mainstream

            Wednesday June 8, 3:00 p.m.
            Session: Exploration Theater
            Speaker Stephen Klein
            Title: Architecting a Capacity Optimized Triple Play
            Network

About Zhone Technologies, Inc. (Zhone)

Zhone (Nasdaq:ZHNE) designs and manufactures network equipment for telephone companies and cable operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video, and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.

Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With deployments at over 300 service providers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses. For more information, please visit http://www.zhone.com.

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. Copyright (C) 2005 Zhone Technologies, Inc. All rights reserved.