Zhone Technologies, Inc. (NASDAQ:ZHNE), a global leader in FTTx network access solutions, today announced the deployment of over 2,000 MXK™ multi-service access node (MSAN) platforms across the globe. Zhone has increasingly focused its development, sales and marketing efforts on the fast-growing Gigabit Passive Optical Network (GPON), Active Ethernet (AE) and Very high bit rate Digital Subscriber Line (VDSL2) markets to augment consumer and business services globally. In July 2011, MXK also reached a significant milestone of being deployed with over 150 service providers in over 40 countries.

“Zhone is a top 5 global player in the emerging FTTH category, based on our analysis of the market,” said David Emberley, research manager of telecommunication infrastructure at IDC. “The strength of Zhone’s position in the global FTTx market is due in large part to its robust product portfolio and targeted focus on access technologies. As a pure-play, Zhone faces tremendous competitive pressure from significantly larger vendors. Zhone's continued technology enhancements and its global customer diversity have enabled it to grow its FTTx deployments significantly in 2010 and 2011. The broadband access market is poised for an upgrade from copper based infrastructure to deep fiber and fiber to the home and Zhone stands to gain further if it can execute its go-to-market strategy.”

Zhone’s powerful combination of best-in-class solution design, continued innovation, technology leadership and global customer service capabilities translates into ongoing expansion of its customer base across the Middle East, Central and Latin America (CALA), Europe and North America regions. Zhone’s leadership status in the global fiber-to-the-home (FTTH) market demonstrates the value that service providers place on the company’s ability to consistently deliver high-quality, high-performance single line multi-service (SLMS)-based multi-service access solutions.

“The MXK, zNID™ GPON and AE Optical Network Terminals (ONTs), Zhone Management System (ZMS™) and Zhone EZ Touch Provisioning™ system offer a powerful combination of customizable solutions for our customers to expand network reach and service offerings in response to rapidly changing user demands,” outlined Brian Caskey, chief marketing officer at Zhone. “Our IP Zhone℠, Zhone FiberHome™ and Zhone FiberCell™ solution portfolios empower operators to sustain the value of their copper, fiber and Ethernet investments long-term and design a cost-effective, scalable and future-proof network.”

Zhone FiberHome portfolio of products and solutions, including the MXK platform, fulfills the network requirements of both international and domestic customers’ broadband expansion efforts for residential and business users and the growing opportunity in the mobile backhaul market provide ongoing opportunities for Zhone to further deploy the MXK platform globally.

A few of the recent MXK deployments announced include:

To-date, Zhone has deployed more than 2,000 of its fully redundant, carrier-grade all-IP MXK platforms with more than 150 service providers globally. Total subscriber capacity supported by these deployments now exceeds 14 million. 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.

For more information about Zhone’s MXK solution or to learn more about its various applications, including mobile backhaul, please visit the Zhone FiberHome™ or Zhone FiberCell™ portfolios on the Zhone website.

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, 2010 and the Company’s quarterly report on Form 10-Q for the quarter ended March 31, 2011. 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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