Access Media 3 Selects Zhone for Reliable Access Solutions

Thu Aug 30, 2012 9:02am EDT

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Contacts

Aurora Arlet Zhone Investor Relations
Edelman for Zhone Public Relations Tel: +1 510.777.7013
Tel: +1 404.460.8578 Fax: +1 510.777.7001
E: aurora.arlet@edelman.com E: investor-relations@zhone.com

Access Media 3 Selects Zhone for Reliable Access Solutions
Growing triple-play service provider leverages MXK to offer high speed television and voice services to multi-tenant residential properties throughout the U.S.

Oakland, CA - August 30, 2012 - Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in FTTx network access solutions, today announced a new MXK(TM) deployment with Access Media 3 (AM3), a rapidly growing triple-play service provider to multi-tenant residential properties in the Chicago, Georgia, Minneapolis/St. Paul, South Florida, Tennessee, Virginia and Washington D.C. markets.

As connectivity demands increase in the multi-unit dwelling market, the flexibility and scalability of the Zhone MXK platform is sought after by service providers across the globe to meet the demand of these unique customers. DSL is not fast enough to support the integration of home services such as high speed internet, television and video-on-demand. As a result, many service providers, like AM3, are turning to very-high-bit rate DSL (VDSL) to provide residents with complete home communications and entertainment packages. AM3 selected Zhone's MXK platform to help meet the challenge of providing multi-tenant property owners and property managers with greater choice of internet, video and voice bundles to choose from.

"AM3 provides high speed internet, television and voice services to more than 500 properties," says Vito Caragiulo, senior vice president of technology for AM3. "Providing service to more than 50,000 subscribers requires reliability and excellent support. VDSL provides an incredible amount of bandwidth-with speeds up to 52 megabits per second (Mbps)-which supports our triple-play services. We turned to Zhone for this deployment because their solutions are flexible, reliable and cost-effective. The products are stable, easy to operate and easy to deploy."

"The ability of the MXK to provide connectivity in facilitating service upgrades to FTTx has been repeatedly demonstrated in similar projects throughout the United States," says Brian Caskey, chief marketing officer for Zhone. "Zhone's success in building the telecom industry's most comprehensive portfolio of scalable FTTx solutions is a direct reflection of the reliability of our products and the value provided to our customers. The MXK helps empower our customers to deliver the newest high speed services to their subscribers."

The number of MXK platform deployments has more than doubled since Q2 2011, expanding from approximately 1,500 systems to more than 3,650, generating a total subscriber capacity of 27 million. In Q2 2012, alone, Zhone shipped more than 400 MXKs. Featuring industry-leading density, scalability and switching capacity, the MXK is the industry's first terabit access concentrator and provides non-blocking capacity of up to  3,600 100 Mbps GPON subscribers or 360 1G Active Ethernet subscribers. Zhone's ONT deployment growth has also grown more than 9,500 percent since Q1 2009.

For more information about Zhone's MXK solution, please visit http://www.zhone.com/products/MXK/.

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 its 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. Specifications, products, and/or product names are all subject to change without notice.

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 financial estimates; projections of revenue, margins, expenses or other financial items. 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 the Company's products; intense competition in the communications equipment market; the Company's ability to execute on its 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, 2011 and the Company's quarterly report on Form 10-Q for the quarters ended March 31, 2012 and June 30, 2012. 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. The Company undertakes no obligation to update or revise any forward-looking statements for any reason.

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