Zhone Technologies Announces Network Expansion With SRT Communications To Support Microsoft Mediaroom

Zhone Technologies, Inc. (NASDAQ:ZHNE), a global leader in FTTx network access solutions, today announced that its industry-leading MXK™ multi-service access node (MSAN) will be used by SRT Communications (SRT) in combination with Microsoft® Mediaroom® to deliver new IPTV and video services via ADSL2+ and fiber-to-the-home (FTTH) networks.

As the largest telephone cooperative in North Dakota, SRT serves 48,000 customers, including consumers, businesses and governmental agencies, and has remained a regional leader in deploying enhanced telecommunications services for the past 60 years. SRT currently provides broadband and dial-up Internet services, wireless service and cable TV as well as traditional telephone, leased line, voicemail and long-distance voice services. After a year-long trial with Zhone, SRT chose to fully utilize the MXK for its new Microsoft Mediaroom-based video offering (SRTVision) to achieve its expansion plans to reach the 5,800 unserved subscribers in its coverage area. SRT is also one of Zhone’s first customers, having deployed the MALC™ MSAN solution almost a decade ago when SRT was seeking an extendable and cost-effective solution to deliver broadband services to its customers.

“Zhone has proven to be a valuable partner in our growth strategy over the years, providing the technology solutions and support needed to design flexible access networks for our multi-play service needs,” noted Shawn Grosz, Director of Network Technology, SRT Communications. “Zhone’s support of the Microsoft Mediaroom platform, their overall responsiveness during the trial phase and the ability of the MXK system to effectively support our unique mix of multicast and unicast network traffic needs will help improve our ability to deliver IPTV services effectively to our customers. With the migration flexibility of the existing MALC installed base, we were able to ensure that the new network build utilizing the MXK system will be completed cost-effectively.”

Zhone’s consistent leadership and solution efficiencies have not only enabled SRT to expand the reach of its services, but rapidly upgrade all of its offerings when needed to maintain a competitive edge. Microsoft Mediaroom-powered TV services are being offered by over 40 network operators, delivering services to more than seven million consumer households equaling more than 15 million set top boxes deployed throughout the Americas, EMEA and APAC. The Mediaroom platform enables SRT to deliver a consistent premium entertainment experience across multiple screens and networks.

“This deployment of Microsoft Mediaroom using Zhone’s MXK is a testament to the unique flexibility we have in supporting a variety of Gigabit Passive Optical Network (GPON) and Active Ethernet (AE) service models,” noted Brian Caskey, chief marketing officer at Zhone. “Specifically, Zhone's MXK platform, in combination with other solutions from the Zhone FiberHome™ portfolio, is providing a critical foundation for customers such as SRT that are not only aggressively driving broadband expansion across North America, but ensuring that such network investments are maximized for multiscreen delivery services.”

Zhone has deployed more than 2,000 of its fully redundant, carrier-grade all-IP MXK platforms with more than 150 service providers in over 40 countries. 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. Microsoft and Mediaroom are trademarks of the Microsoft group of companies.

Copyright Business Wire 2010

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