Zhone`s New MXK Intelligent Terabit Access Platform Gains USDA Rural Utilities Service Acceptance for FTTx Services

MXK Eligible for RUS Funding to Speed Universal Broadband Service
OAKLAND, Calif.--(Business Wire)--
Zhone Technologies, Inc. (NASDAQ:ZHNE), a global leader in network access
solutions, announced today that its new MXK() platform has been accepted by the
US Department of Agriculture`s Rural Utilities Service (RUS) for use by RUS
program participants. RUS and the National Telecommunications and Information
Agency (NTIA) are responsible for dispersing the $7.2 billion in economic
stimulus funding allocated for broadband initiatives under the 2009 American
Recovery and Reinvestment Act (ARRA).

RUS provides grants and low cost loans to help network operators secure
authorized equipment to bring high-speed broadband services to rural and
underserved communities. Zhone products first gained RUS acceptance in 2003,
with the recently announced MXK being the newest addition to the program.

Zhone`s MXK represents significant milestones in broadband access networking and
is expressly designed to support the new generation of HD media and on-demand
video that require enormous amounts of dedicated bandwidth. In addition to
providing a 2x bandwidth improvement over the closest competing platform, the
MXK leverages Zhone`s well-proven SLMS() access operating system, giving network
operators sophisticated service intelligence and intuitive management with ten
years of feature development right out of the gate. The MXK is also the only
platform to feature Smart OMCI() (Optical Network Terminal Management Control
Interface) for true ONT standards-based interoperability and ease of use.

"Zhone`s MXK is well-suited to NTIA and RUS stimulus projects," said Ron
Westfall, Research Director, Access and Applications for Current Analysis. "The
platform is designed to substantially reduce the cost of broadband for operators
and thereby improve service availability and speed, right in line with the Obama
Administration`s goals for the broadband stimulus programs."

"We`re impressed with the performance, ease of installation, flexibility and
cost effective price per port provided by Zhone," said Jeff Lee, Plant Manager
for Wisconsin based Chequamegon Communications. "The MXK has the horsepower and
the backplane to offer the mega capacity and port counts we need to meet the
ever-growing bandwidth desires of our customers."

"We are very proud of what we`ve accomplished with the MXK, and we`re excited by
the opportunity that RUS listing provides our customers," said Steven Glapa, VP
of product management and marketing for Zhone. "We believe that the MXK`s
benchmark-setting performance can indeed make a significant contribution toward
the achievement of America`s broadband objectives."

For more information about Zhone`s MXK, or to ask about the RUS program please
visit http://www.zhone.com/products/MXK/ or call (877) Zhone-20 (946-6320).

About Zhone Technologies - Access for a Converging World

Zhone Technologies, Inc. (NASDAQ:ZHNE) is a global leader in multi-service
access solutions, serving more than 700 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, improving network agility and
reducing the costs of 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 all 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.

Zhone
Molly Deltoro, +1-510-777-7013 (Investor Relations)
Fax: +1-510-777-7001
investor-relations@zhone.com
Tracy Oliver, +1-510-665-7984 (Public Relations)
Mobile: +1-925-640-0989
tracy@skycastlemedia.com

Copyright Business Wire 2009