Zhone's Arca-DACS and Sechtor 300 Products Acquired by Verilink

OAKLAND, Calif. & CENTENNIAL, Colo.--(BUSINESS WIRE)--Sept. 30, 2005
Verilink Corporation (Nasdaq:VRLK), a leading provider
of broadband access solutions, and Zhone Technologies, Inc.
(Nasdaq:ZHNE), the first company dedicated to building total-delivery
solutions for voice, data and video content services worldwide, today
announced that Zhone's Arca-DACS and Sechtor 300 products have been
acquired by Verilink. 
For the past several years, Verilink has been a major OEM of these
products with a successful sales and service record of deploying these
products at some of the world's largest carriers. As such, Verilink is
uniquely qualified to provide continued sales and service of these
products to the Arca-DACS and Sechtor 300 customer base. 
Mory Ejabat, Chairman and CEO of Zhone, said, "We are pleased that
Verilink has chosen to include the Arca-DACS and Sechtor 300 products
in its family of telecommunications product portfolio. With this
transaction, our customers benefit from continued sales of these
products as well as from Verilink's experience in servicing these
products at its largest customers." 
"In addition to expanding our product portfolio to the network
edge, this acquisition is important for Verilink as the Arca-DACS is
an integral part of a network solution we supply to our largest
customer," said Leigh Belden, President and CEO of Verilink. "We have
been supplying this product to our customers under OEM for over three
years and have gained a tremendous level of operational and field
experience. With this we are well prepared to continue supporting our
existing customer as well as those gained through this agreement." 
The ARCA-DACS 100 and Sechtor 300 products are ideally suited for
grooming fractional T1s at the network access facility, allowing
carriers to choose switching granularity from DS3 down to DS0, all in
one efficient, effective, and economical platform. The Arca-DACS and
Sechtor 300 are OSMINE-certified and Network Equipment Building
Standard (NEBS) Level-3 compliant. Both are carrier-class products
designed to deliver reliable 99.999% service with no
single-point-of-failure. The products also comply with all physical,
power, and software requirements needed for installation in a central
office, remote node, or customer site. 
As an important component of this deployment, both the Arca-DACS
and Sechtor 300 have completed the OSMINE Services certification
process for Telcordia(TM) Network Configuration Manager (NCON) and
Telcordia(TM) Loop Facilities Assignment and Control System (LFACS)
support. This certification helps to ensure operations systems
automation to deliver services in a timely fashion and on a volume
basis. Customers also will benefit from improved billing, ordering,
repair and account management services. 
The OSMINE services process is an important aspect of a carrier's
service offering. The completion of the OSMINE services process allows
carriers to pre-qualify the ordering, circuit engineering and
provisioning of the service. This flow-through integration reduces
provisioning intervals and associated costs. The result for the
subscriber is quicker turn-up of service. 
Under the terms of this agreement, Zhone will receive 2 million
common shares of Verilink in exchange for the inventory, equipment and
liabilities associated with the products. 
About Verilink Corporation 
Verilink Corporation (NASDAQ:VRLK) is a leading provider of
next-generation broadband access solutions for today's and tomorrow's
networks. The company develops, manufactures and markets a broad suite
of products that enable carriers (ILECs, CLECs, IXCs, and IOCs) and
enterprises to build converged access networks to cost-effectively
deliver next-generation communications services to their end
customers. The company's products include a complete line of VoIP,
VoATM, VoDSL and TDM-based integrated access devices (IADs), optical
access products, wire-speed routers, and bandwidth aggregation
solutions including CSU/DSUs, multiplexers and DACS. The company also
provides turnkey professional services to help carriers plan, manage
and accelerate the deployment of new services. Verilink is
headquartered in Centennial, CO (metro Denver area), with operations
in Madison, AL, and Newark, CA, and sales offices in the U.S., Europe
and Asia. To learn more about Verilink, visit the company's website at
About Zhone Technologies, Inc. 
Zhone 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) and GrandSLAM ATM/IP DSLAMs,
ReachDSL(TM), Network Extender Ethernet in the First Mile bonded
solutions, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM), Optical
Transport Systems and Zhone Management System (ZMS(TM)). With
deployments at over 400 carriers including among some of the world's
largest networks, Zhone has enabled network operators to reinvent
their businesses. For more information, please visit 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.
Verilink and the Verilink logo are registered trademarks of Verilink
Corporation. All other trademarks or registered trademarks are the
property of the respective owners. 
Zhone Technologies, Inc.
Jessica Mullens, 510-777-7020 (Media)
Fax: 510-777-7001
Investors, 510-777-7013
Fax: 510-777-7001
Verilink Corporation
Gary W. Gray, 510-771-3354
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