Zhone Technologies Aids Norvado in Transition to Full Fiber Network

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Zhone's MXK enables broadband speeds up to 1 GB for counties in northwestern Wisconsin

Oakland, CA August 12, 2014

Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in the fiber access market, today announced the completion of Norvado's Fiber to the Home (FTTH) project, which began in 2008 and was made possible through installation of Zhone's MXK platform. The FTTx Gigabit Passive Optical Network (GPON) enables Norvado, an advanced telecommunications provider in Cable, Wisconsin, to join a handful of Wisconsin companies offering Internet subscribers broadband speeds up to one gigabit.

Norvado's business and residential subscribers benefit from fast delivery of affordable and reliable high-speed Internet access, VoIP and video services based on the company's investment in Zhone's fiber network solutions. Approximately 5,500 subscribers are currently using the Norvado network in four northern Wisconsin counties, including Bayfield, Ashland, Douglas and Sawyer. As broadband demands continue to increase across the globe, Zhone's ability to provide GPON connectivity has been demonstrated in similar projects such as JNT, Gavlenet and IP UtiliNet.

"Gigabit broadband speeds are bringing greater opportunity for growth in North Western Wisconsin, and broadband access is quickly becoming a staple for economic development," said Jeff Lee, plant manager at Norvado. "We chose Zhone's MXK platform to help us transition to a full fiber optic network because of its reputation for performance, scalability and density."

"Consumers today expect fast, reliable and affordable Internet services, whether they live in a city, the suburbs or in a small town. By selecting Zhone's MXK platform, Norvado has been able to deliver fast speeds and affordable prices with an aggressive timeline, making this project a huge success," said Brian Caskey, chief marketing officer at Zhone Technologies. "Norvado has reported that businesses are moving to the area in order to have access to the faster broadband speeds, which shows just how important broadband services are to driving growth throughout the U.S."

Zhone continues to demonstrate global expansion of its industry-leading MXK platform, surpassing more than 6,700 system deployments with more than 150 service providers around the world at the end of Q2 2014. Zhone provides 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 the fiber access market, 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 Investor Relations
Tel: +1 510-777-7013
Fax: +1 510-777-7001
Email: investor-relations@zhone.com
   Aurora Arlet
Edelman for 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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