Zhone Technologies Advances Network Efficiency for Scandinavian Service Provider

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Zhone's MXK helps JNT cut support costs and increase broadband speeds

Oakland, CA June 26, 2014

Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in FTTx network access solutions, today announced that Finnish service provider Jakobstadsnejdens Telefon Ab (JNT), has chosen to deploy Zhone's MXK, replacing AXE traditional telephony stations and old ADSL Digital Subscriber Line Access Multiplexers (DSLAMS), improving the networks overall speed and efficiency. Headquartered in Jakobstad, Finland, JNT provides broadband, VoIP, television and IT solutions to consumers, enterprises, communities and other telecom operators in both Finland and Scandinavia.

JNT is the leading company in FTTH and fiber networks in Finland. The company chose to install Zhone's MXK to reduce support and energy costs by replacing older, inefficient units with one MXK. The deployment enables JNT to produce greener services, higher speed broadband and will allow for an easy upgrade to fiber in the future.

"Zhone's unique and adaptable solutions allow us to provide faster and better quality services for our customers while also enabling us to upgrade our network easily in the future," said Kenneth Nylund, chief technology officer at Jakobstadsnejdens Telefon Ab. "Broadband access is guaranteed to everyone in Finland, and we go above and beyond to provide our customers with the best possible services available."

"Zhone's MXK helped JNT reach its goal of providing high speed services at lower costs," said Brian Caskey, chief marketing officer at Zhone Technologies. "Zhone's portfolio meets the diverse needs of service providers by offering highly scalable platforms with full-featured support."

Finland is one of the world's leading countries in information and communications technology (ITC) because according to CNN, no matter how secluded the area is, all inhabitants are guaranteed broadband access by law. High speed networks and mobile networks are so important that there are actually more wireless subscriptions in Finland than there are people in the country, via The World Bank.

Zhone continues to provide innovative access solutions, delivering voice, video and data services over copper and fiber. For more information on Zhone's FiberHome™ portfolio please visit http://www.zhone.com.


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.

Contacts:

Zhone Investor Relations
Tel: +1 510-777-7013
Fax: +1 510-777-7001
Email: investor-relations@zhone.com
   Zhone Public Relations
Tel : +1 404-460-8578
Email: aurora.arlet@edelman.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.

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, 2013. 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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