Zhone Recognized as a Leading Global GPON Vendor by Infonetics Research and Dittberner Associates

Zhone's MXK Multi-Service Access Platform Estimated to Be Amongst the Fastest Growing GPON Solutions Worldwide

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 results from leading market analysis firms, Infonetics Research and Dittberner Associates. Results show Zhone’s GPON port shipment year-over-year growth at 4,580% from Q1 2009 to Q1 2010, thereby outpacing the industry average. The company saw rapid adoption of its MXK and zNID FTTx system in EMEA and CALA.

Zhone Highlights: Infonetics Research, PON and FTTH Equipment and Subscribers, June 1, 2010 and Broadband Aggregation Hardware and Subscribers, May 26, 2010

• Year-over-year growth of GPON port shipments at 4,580%
• Top 3 vendor ranking for GPON OLT and ONT in EMEA and CALA
• Leading vendor for MSAP/DSL ports for CALA

Zhone Highlights: Dittberner Associates, 1Q10 DSL, FTTH, and FTTB/LAN Access Shipment Analysis, June 4, 2010

• 3rd worldwide in total GPON ONT and OLT ports
• 2nd in CALA in GPON ONT and OLT ports
• 2nd in EMEA in GPON ONT and OLT ports

“Since announcing the MXK, Zhone has continued to increase traction in key growth markets, including the Americas and the Middle East,” said Jeff Heynen, Directing Analyst, Broadband and Video for Infonetics Research. “Subscriber density, expanded throughput performance of the MXK, and a broad range of zNID ONTs have helped Zhone expand its FTTX market presence worldwide.”

“Zhone is in the right place at the right time with its MXK platform for FTTx,” said James Heath, Research Director, Broadband and Next Generation Markets for Dittberner Associates. “Virtually limitless bandwidth, service intelligence and ease of use features like auto-provisioning enable service providers to significantly lower bandwidth costs while raising quality of experience and consequently average revenue per subscriber.”

“Our MXK and zNID FTTx system allows carriers to evolve from bandwidth providers, to communications and entertainment services providers,” said Brian Caskey, CMO for Zhone. “Our customers are building the networks that will shape our future, supplying entertainment, business and mobile backhaul services with an FTTx system built to endure.”

About Zhone Technologies

Zhone Technologies, Inc. (NASDAQ: ZHNE) is a global leader in multi-service access solutions, serving more than 750 of the world's most innovative network operators. The company offers the industry's only fully-integrated portfolio of MSAP, FTTx, EFM and Wi-Fi access technologies resulting in improved network agility and reduced costs in delivering the full spectrum of access services, including residential and business broadband, VoIP, and High-Definition IPTV — over copper, fiber, and wireless. Zhone is headquartered in California and its MSAP products are manufactured in the USA in a facility that is emission, waste-water and CFC free.

Bandwidth Changes Everything™ http://www.zhone.com

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,” variations of such words, and similar expressions are intended to identify forward-looking statements. In addition, forward-looking statements include, among others, statements that refer to MXK, zNID FTTx and GPON Solutions estimates and projections of growth. 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 our products; intense competition in the communications equipment market; our ability to execute on our 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, 2009 and Zhone’s quarterly report on Form 10-Q for the quarter ended March 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. Zhone undertakes no obligation to update or revise any forward-looking statements for any reason.

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
E: investor-relations@zhone.com
or
Public Relations:
Tracy Oliver, +1-510-665-7984
Mobile: +1-925-640-0989
E: tracy@skycastlemedia.com

KEYWORDS:   United States  North America  California

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

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