Shawnee Telephone Company Selects Zhone for $8.5 Million RUS Funded Broadband Stimulus Project

Southern Illinois Sustainable Broadband Transformation Project to Bring High-Speed Telecommunication Services to One of the Nation’s Most Remote Regions

OAKLAND, Calif.--(BUSINESS WIRE)-- Zhone Technologies, Inc. (NASDAQ:ZHNE), a global leader in network access solutions for fiber, copper and wireless broadband infrastructures, today announced that broadband stimulus award winner Shawnee Telephone Company has selected its multi-service access node (MSANs) for support of the Southern Illinois Sustainable Broadband Transformation project.

Shawnee was awarded $8.5 million in federal and state funds to connect 1,209 households; 438 businesses; and 35 public schools, libraries, law enforcement offices and medical facilities in one of the nation’s most remote and underserved regions. Long distances and a geographically dispersed population have posed ongoing challenges in bringing broadband access to the 90 Illinois communities that comprise Shawnee, one of the largest and most remote contiguous service areas in southern Illinois.

By using Zhone’s MSAN platform, Shawnee can utilize a combination of broadband technologies including Gigabit Passive Optical Network (GPON) and ADSL2+ to more cost effectively provide equal opportunity high-speed access to even the most rural locations.

Slated to begin this month, the Southern Illinois Sustainable Broadband Transformation project will provide direct employment for nearly 100 people in an area with one of the nation’s highest unemployment rates. Fiber connectivity will enable local school and community college systems to provide online learning and additional college preparatory classes in a move to permanently bolster opportunity and economic advantages for the region. Shawnee has also proposed free access to personal computers and training to further bridge the opportunity divide for low income residents.

“Zhone’s single-platform, multi-service approach to broadband access provisioning provides both the flexibility and service scalability required for the success and ongoing growth of this project,” said Mike Grisham, controller for Shawnee Telephone Company. “Zhone is consistently responsive in helping us meet the unique challenges in rural service provisioning, both in upfront equipment value and by significantly lower ownership costs over the long term.”

“This is one of many stimulus contracts for Zhone and validates that our MSAN solutions and intelligent end terminals are designed for low-touch and no-touch provisioning from central office locations which is a critical advantage for serving rural areas,” said Brian Caskey, chief marketing officer for Zhone. “By providing access – starting at the desktop – Shawnee has shown extreme foresight and commitment to ensuring real long-term educational opportunities, growth and economic promise to the area.”

The Southern Illinois Sustainable Broadband Transformation project was awarded $7.35 million in grants and loans from the U.S. Department of Agriculture’s Rural Utility and $1 million in matching funds from the Illinois Department of Commerce and Economic Opportunity.

About Shawnee Telephone Company

Shawnee Telephone Company, headquartered in Equality, has provided high quality telecommunications access to citizens in its service territory, one of the most remote areas of the country, for more than 60 years. Today, the company and its subsidiaries serve more than 90 southern Illinois communities and have one of the largest contiguous service areas in southern Illinois.

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 our 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.

CONTACT:

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

KEYWORDS:   United States  North America  California  Illinois

INDUSTRY KEYWORDS:   Technology  Internet  Networks  Telecommunications  Mobile/Wireless

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