Zhone Expands End-to-End MSAP Performance With Two New Optical Network Terminals...

Zhone Expands End-to-End MSAP Performance With Two New Optical Network Terminals for Active Ethernet

Zhone's zNID Suite for Active Ethernet Simplifies Installation and
Management of Multimedia Home Networks
OAKLAND, Calif.--(Business Wire)--
Zhone Technologies, Inc. (NASDAQ:ZHNE), a global leader in
multi-service access equipment for VoIP, IPTV and Ethernet over copper
and fiber access lines, today announced two new Fiber to the Home
(FTTH) gateways. The new models include the zNID(TM) multimedia
outdoor gateway which brings the same layer-three intelligence and
Quality of Service (QoS) features available for GPON to point to point
Ethernet installations. Zhone also introduced its new zNID indoor
gateway designed for high performance WiFi networks. Both new FTTH
gateways provide end-to-end integration with Zhone's IEEE standard
Active Ethernet (AE) line card for its market-leading MALC(TM)
Multi-Service Access Platform (MSAP).

"Zhone continues to be an innovator in the next-generation access
sector, this time bringing advanced management capabilities to FTTH
networks, for both Active Ethernet and GPON," said Erik M. Keith,
senior analyst for broadband infrastructure at Current Analysis.
"Reducing truck rolls while maximizing remote control and management
of FTTH subscribers' home networks enables operators to deliver higher
QoS and Quality of Experience (QoE) capabilities, thereby enhancing
overall service differentiation, which can create an important, even
critical competitive advantage."

Unleashing Subscriber Networks

Zhone's MSAP network strategy gives operators a comprehensive
choice of access technologies for delivering new services, ranging
from point-to-point AE, GPON, and bonded copper pairs. Network
planners are future-proofing their infrastructures to prepare for the
next generation of applications, including multiple HD streams,
supersensory gaming and the rapid evolution cycles associated with
user generated content.

A critical challenge facing carriers is how to effectively
integrate home networks to achieve end-to-end performance on par with
modernized infrastructures. Traditionally home networks exist as
static islands isolated from the network at large, offering operators
little or no remote visibility or advanced management capabilities.
Blind subscriber networks can quickly erode the bottom line for
carriers. The Yankee Group projects support calls and truck roll costs
to top $6.5 billion by 2010 for IPTV alone. Early provisioning
mistakes lead to quick customer churn, especially when provisioning
IP/HDTV services where the consumer aesthetic is uncompromising. By
bringing remote intelligence to the subscriber site, carriers can
dramatically reduce provisioning and management costs while improving
customer features and total Quality of Experience (QoE). Further, with
Zhone's zNID gateway suite, carriers can provide differentiated new
services like home video security and anywhere access to electronic
command centers within the home via secure virtual private networks
(VPNs).

"End to end system performance and superior management integration
were deciding factors in SRT's selection of Zhone as the primary
access vendor for our Active Ethernet build," said Shawn Grosz,
director of network technology for SRT Communications. "Attitude was
another factor. Zhone consistently takes an active partnership role in
the success and performance of our network and our business."

SRT needed to address the digital divide between its metro
customers who receive up to 8 Mbps ADSL service and its rural
customers who were relegated to dial up speeds. Opting to future proof
its rural serving area with fiber, SRT now uses the same MALC platform
to provision FTTH to rural locations and ADSL to the metro via its
extensive copper network.

Untangling Home Wiring

Based on the IEEE 802.ah interoperability standard, Zhone's zNID
product family provides carriers with a suite of ease-of-use features
for service providers and consumers that are new to the industry. Like
the zNID for GPON, service changes or upgrades are managed remotely
via Zhone's TR-069 automatic configuration server, the same management
standard already used for millions of DSL installations worldwide. The
zNID provides versatile deployment options including standard coax
cable or ordinary twisted pair copper which are standard in most
homes. Providers bypass time, costs and risks associated with in-home
drilling and cabling. Using standard jacks, coverage becomes as
seamless and intuitive as electricity throughout the entire house at
100+ Mbps.

More Choice

Ideal for multi tenant unit (MTU) installations, Zhone's zNID plug
and play indoor WiFi gateway is designed for ease of use and
installation. The zNID WiFi gateway operates in bridged and router
mode providing, 54 Mbps WiFi coverage and 100 Mbps total bandwidth for
all voice and data. The indoor zNID gateway supports Wi-Fi Multimedia
(WMM) QoS standard and provides advanced voice quality features for
Voice over IP.

"Bringing a high degree of manageability to subscriber networks
enables operators to provide more service differentiation to their
customers at lower cost," said Steven Glapa, vice president of
marketing and product management for Zhone. "Beyond management and
increased functionality, there is a clear economic advantage to
working with well-integrated end-to-end platforms."

The Zhone Difference:

Zhone's zNID Intelligent Home FTTH Gateways for Active Ethernet

zNID 4200 Series Outdoor Multimedia Gateway

-- Easy installation and management of advanced media and home
networking services

-- Dual wiring support provides complete home coverage with no
new wiring

-- Intuitive end-user interfaces and value added networking
features

-- VoIP, Ethernet and IPTV via standard coax and/or phone line,
POTs and IPTV support

-- SIP support for intelligent VoIP call processing

-- Remote monitoring & addition of new services -- advanced QoS

-- Multiple management options include Zhone's standard TR-069
management system already used with millions of DSL
installations

-- Single system solution includes firewall security

-- Password protected VPN for anywhere connectivity

-- Rapidly deploy 100 + Mbps to every home for state of the art
multimedia networks

zNID 1100 Series Indoor WiFi Gateway

-- 100 Mbps total bandwidth with Integrated 802.11g WiFi (54 Mbps
wireless)

-- Operates in bridged or router mode

-- Integrated 4-Port 10/100Base-T Ethernet Bridge

-- 2 VoIP ports with advanced call QoS features and integrated
failsafe

-- SIP support for intelligent VoIP call processing

-- Call forwarding, call waiting, call transfer, caller ID and
3-way conferencing

-- Multiple management options include Zhone's standard TR-069
management system already used with millions of DSL
installations

-- Universal plug and play installation

About Zhone Technologies -- Access for a Converging World

Zhone Technologies, Inc. (NASDAQ:ZHNE) is a provider of advanced
access network equipment to more than 600 operators worldwide. The
company offers the industry's broadest portfolio of fully-integrated
access solutions, enabling the full range of multi-play services,
including residential and business broadband, VoIP, IPTV, and
Ethernet. Zhone's converged multi-service access platform improves
network agility and reduces costs, allowing operators to rapidly
deploy premium services on their existing copper and fiber
infrastructure while providing a seamless migration path to an
efficient, all-IP network. www.zhone.com

Zhone Technologies, Inc.
Susie Choy, +1-510-777-7013 (Investor Relations)
Fax: +1-510-777-7001
investor-relations@zhone.com
or
For Zhone Technologies, Inc.
Tracy Oliver, +1-510-665-7984 (Public Relations)
or +1-925-640-0989 (mobile)
tracy@skycastlemedia.com

Copyright Business Wire 2008