Zhone Technologies Enables Argentinian Cooperative to Provide Advanced Video, Voice and Data

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Zhone's MXK increases speed and quality of services for residents of San José, Argentina

Oakland, CA August 28, 2014

Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in the fiber access market, today announced that Cooperativa de Electricidad, Servicios Públicos y Vivienda Ltda. "San José" has selected Zhone MXK and zNIDs to provide triple play services in the Buenos Aires district of San José, with intention of eventually expanding services to Santa María and Santa Trinidad. The installation makes this deployment one of the first pure triple play services over a Gigabit Passive Optical Network (GPON) in the local telecom cooperatives market.

Cooperativa Eléctrica San José was founded in 1961 and became a telecom operator in 1993. It is located in the south of the Buenos Aires province, and provides electrical and telecommunications services to business and residential customers in San José, Santa María and Santa Trinidad. The cooperative selected Zhone's solutions through its local reseller partner, Argentinian Communication Partner SRL (Commpartner).

"The cooperative decided to make the leap towards upgrading quality and quantity of the services we offer and installed Zhone's solutions to provide voice, data and video services over IP to all our subscribers," said Diego A. Schmidt, general manager at Cooperativa de Electricidad, Servicios Públicos y Vivienda Ltda. "San José". "Zhone and Commpartner walked us through the analysis and implementation process, and we were very impressed with the selection of equipment options available. The deployment made us one of the first cooperatives to implement GPON technology in our market, expanding service options for our customers and giving us a more competitive edge."

"Zhone and Commpartner worked with Cooperativa Eléctrica San José to ensure that the right solution was identified to fit their unique needs," said Brian Caskey, chief marketing officer at Zhone Technologies. "Zhone's MXK platform is assisting the cooperative in establishing a reputation as one of the most forward looking telecom operators in the area, providing efficiency and reliability to its business and residential customers."

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.

About Communication Partner SRL

Communication Partner SRL is a regional system integration company, focused on providing end to end solutions in telecommunications using wireless, copper and fiber based technologies. The company was founded in 2001 and its goal is to provide their customers with integrated Data, VoIP and IPTV solutions with quality and optimum cost. The company is located in the capital city of the Córdoba province and its customer base ranges from small businesses to large telecommunications companies in the Southern Cone of Latin America.


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 o Form 10-K for the year ended December 31, 2013 and the Company's quarterly report on Form 10-Q for the quarter ended March 31, 2014 and June 30, 2014. 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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