Zhone Technologies Multi-Access Line Concentrator Awarded Top Ranking in Latest Industry Analysis; Zhone MALC Identified as Very Threatening by Leading Industry Analysis Firm

Business Wire, Nov 17, 2005

OAKLAND, Calif. -- Zhone Technologies, Inc. (NASDAQ:ZHNE), the first company dedicated to building total-delivery solutions for voice, data, video and entertainment services worldwide announced today that Zhone's Multi-Access Line Concentrator (MALC(TM)) was awarded the top ranking among Broadband Loop Carrier products by independent technology analyst firm Current Analysis.

In its most recent review of Broadband Loop Carrier products, Current Analysis rated offerings from eight competing vendors including Alcatel, Calix, Ciena, Lucent, Occam, Samsung and Tellabs. The products were evaluated based on five categories including Scalability, Packet Migration Flexibility, Legacy Voice Support, DSL Support and Price. Each product was assigned a score for each category based on its merits in the specific area. Zhone's MALC received the highest ranking of all products reviewed with a composite score of twenty-four out of a possible score of twenty-five.

In addition to top marks in numerical scoring, Zhone's MALC was also distinguished by Current Analysis in this most recent report as the only platform deemed 'very threatening' to competitors.

"Zhone can assert with validity the highest DLC (and DSLAM) density/scalability metrics on the market with support of up to 960 ADSL2 ports per MALC chassis and 5,760 ADSL2 ports per seven-foot rack," said Ron Westfall, Principal Analyst for Broadband Infrastructure at Current Analysis. "The MALC enables carriers to transition from TDM voice services to converged, packet-based voice, data and video service offerings as driven by customer demand."

The MALC platform supports software-selectable service ports, integrated cross-connect, integrated loop qualification with internal splitters, and flow-through provisioning capabilities to aid Zhone's efforts to clearly differentiate the platform from traditional DLC platforms. The addition of the PON components as well as RPR transport technology to the MALC line demonstrates Zhone's strong commitment to the next-generation (fiber-based) broadband access market, bolsters the architecture's "protocol- and media-agnostic vision," and enhances and extends the service life of the platform. This also allows Zhone to offer common hardware and management systems for both copper and fiber access media.

The market-leading MALC and Raptor products have been widely deployed by leading carriers globally. The MALC is a versatile platform that is available in a range of environmentally hardened shelf sizes including 7U, 3U and now 1U and can be deployed in the CO, remote terminals or subtended from existing cabinets.

By simultaneously addressing the need for bandwidth, reach and interoperability, Zhone allows operators to provide cost-effective voice, data and video services. In addition, the MALC is the only family of BLCs that provide in-service migration from TDM to IP Voice (VoIP) services with software-selectable emergency standalone capabilities. The MALC makes delivery of voice, data and video services possible today while providing an elegant migration to pure packet.

"Carriers are turning to Broadband Loop Carriers to deliver triple-play voice, data and video services," said David Markowitz, vice president of marketing at Zhone. "As the number one BLC platform on the market today, Zhone's MALC has already been validated by the market place as the best platform for delivering profitable triple-play services. This recent product assessment by Current Analysis further validates the MALCs superior feature, density and cost benefits."

About Zhone Technologies, Inc. (Zhone)

Zhone designs and manufactures network equipment for network 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) and GranDSLAM(TM) ATM/IP DSLAMs, ReachDSL(TM) Technology, FiberSLAM(TM) Optical Line Terminal, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With deployments at over 600 carriers 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.

For more information, please visit www.zhone.com