Zhone Technologies and FONEX Provide Custom-Built Fiber Network for ECFiber

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Zhone's products help deliver high-speed Internet and telephone service to business and residential customers

Oakland, CA February 11, 2014

Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in FTTx network access solutions, has joined forces with FONEX Data Systems Inc., a leading telecom equipment supplier, to bring high-speed bandwidth to ECFiber (the East Central Vermont Community Fiber Network). ECFiber is a group of 24 local municipalities that, in partnership with ValleyNet, a Vermont based non-profit organization, is building a fiber optic network capable of delivering high-speed Internet and telephone service to homes and businesses in participating towns.

Zhone's custom-designed hardware solution, along with FONEX's knowledge of network architectures and industry standards, provided ECFiber with the flexibility it needed to build the fiber optic network. Zhone's collaboration with FONEX ensured a purpose-built and cost effective solution that met the technical and operational needs of both large and small communities and the scalability of the equipment allowed for a network that could be built in stages as the funds are raised.

"Zhone's unique portfolio of products and solutions enabled successful collaboration with FONEX to create a high-speed network, giving ECFiber's business and residential customers access to sophisticated applications," said Brian Caskey, chief marketing officer at Zhone Technologies. "The new network will enable ECFiber to successfully expand service offerings and increase broadband speed while achieving optimum cost efficiency."

The FTTH solution contains Zhone's MXK platform, a fully redundant, carrier-grade all-IP platform and the industry's first terabit access concentrator. Featuring industry-leading density, scalability and switching capacity, the MXK provides non-blocking capacity of up to 3,600 100 Mbps GPON subscribers or 360 1G Active Ethernet subscribers.

"Zhone and FONEX worked together to provide and deliver fast and high-quality all IP multi-service solutions for ECFiber's customers," said Stan Williams, interim chief executive officer, ECFiber. "The partnership was seamless and the network has been a huge success for our community and its residents."

FONEX's proposed solution to ECFiber included configuration for future network expansion, onsite training and local area support. FONEX works in partnership with its customers to provide optimized network design solutions and maximize fiber utilization. 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.

About FONEX Data Systems Inc.

FONEX is a leading carrier-class telecom equipment supplier focused on delivering optimized network infrastructure design solutions. We specialize in providing purpose-built access, metro edge and CPE fiber optic network solutions to network service operators with the latest cutting-edge devices from top industry manufacturers. With our combined collective knowledge and integration capabilities, FONEX provides the technical expertise needed to troubleshoot, analyze and design systems that achieve the best cost vs. performance solution for our clients' requirements. We also offer network design and staging support services. FONEX supports organizations in Canada, US, France and Italy. For more information, please visit www.fonex.com.

About ECFiber

ECFiber, (the East Central Vermont Community Fiber Network) is legally-constituted as a municipality through an InterLocal Contract (ILC) pursuant to Vermont Law. It has a Governing Board consisting of one delegate and one alternate delegate appointed by the Select Boards or City Council in each of the 23 member towns and one city (Montpelier).

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, 2012 and the Company's quarterly report on Form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and September 30, 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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