Zhone Reaffirms Number One Market Leadership in Broadband Loop Carrier

    Business Editors/High-Tech Writers

    OAKLAND, Calif.--(BUSINESS WIRE)--May 11, 2005--Zhone Technologies, Inc. (Nasdaq:ZHNE), the first company dedicated to building total-delivery solutions for voice, data and content services worldwide, announced today that it has reaffirmed its number one market share position as reported by Broadband Trends Research in the fast growing Broadband Loop Carrier (BLC) market. In the first quarter of 2005, Zhone's flagship Multi-Access Line Concentrator (MALC) and Raptor ATM/IP DSLAM products became the first of any BLC product to exceed over 100,000 DSL ports in a single quarter.
    "The Broadband Loop Carrier is the fastest growing segment in the DSL access market, as reported in the most recent quarter on a worldwide basis," said Teresa Mastrangelo, principal analyst at Broadband Trends Research. "This most recent report, clearly demonstrates both the validation for this category and the acceptance of Zhone's products as the leader in the space."
    For the first quarter of 2005, Zhone's BLC business grew over 100% from the previous quarter and over 500% over the first quarter of 2004.
    "Telecommunications carriers around the world are looking for broadband solutions that allow them to deliver IPTV, VoIP and Triple Play services to their entire subscriber base," said Mory Ejabat, Zhone's Chairman and CEO. "Zhone has made substantial investments in developing products that meet the exacting needs of both North American and international carriers. We are pleased not only with the substantial number of ports shipped in the first quarter, but also in the balanced contribution of shipments attributable to each of our operating regions."
    The MALC and Raptor products provide the highest density and lowest cost per port of any DLC or DSL platform on the market. In addition, Zhone's environmentally hardened low-port count solutions allow carriers to minimize loop lengths and provide precisely the right sized DSL platform for every demographic requirement. Zhone's solutions allow even the most remote subscribers to enjoy interactive broadband services and allows carriers to realize new revenue opportunities by delivering digital voice, data and video services throughout their serving areas.

    About Zhone Technologies, Inc. (Zhone)

    Zhone (Nasdaq:ZHNE) designs and manufactures network equipment for network operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video, and entertainment services over their existing networks while simultaneously retooling for converged packet based voice (VoIP) and video (IPTV) over copper or fiber access lines.
    Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With deployments at over 300 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses. For more information, please visit http://www.zhone.com.

    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. Copyright (C) 2005 Zhone Technologies, Inc. All rights reserved.

    For more information, please visit http://www.zhone.com.

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CONTACT: Zhone Technologies, Inc. Siobhan McMullin, 510-777-7020 (Media) smcmullin@zhone.com Investor Relations, 510-777-7013 investor-relations@zhone.com

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: TELECOMMUNICATIONS SOFTWARE NETWORKING INTERNET E-COMMERCE PRODUCT SOURCE: Zhone Technologies, Inc.

Copyright Business Wire 2005