Zhone Technologies, Inc : North State Turns to Zhone ONT for Rapid IPTV Deployment

   Zhone Technologies, Inc : North State Turns to Zhone ONT for Rapid IPTV
                                  Deployment

Contacts

Aurora Arlet                       Zhone Investor Relations
Edelman for Zhone Public Relations Tel: +1 510.777.7013
Tel: +1 404.460.8578               Fax: +1 510.777.7001
E: aurora.arlet@edelman.com        E: investor-relations@zhone.com

           North State Turns to Zhone ONT for Rapid IPTV Deployment
 Large independent telecommunications and home entertainment company in North
    Carolina leverages Zhone products to support Plex Advanced TV offering

Oakland, CA -Jan. 16, 2013 -Zhone Technologies, Inc. (NASDAQ: ZHNE), a
global leader in FTTx network access solutions, today announced that its
industry-leading ONT was deployed by North State, a leading broadband and
entertainment provider based in High Point, North Carolina, to deliver IPTV
and video services via fiber-to-the-home (FTTH). As one of the largest
independent communications and home entertainment providers in North Carolina,
North State maintains a robust network comprising more than 68,000 miles of
high-capacity fiber delivering voice, video, broadband Internet for
residential services and networking, IP services, and critical back-up and
disaster recovery solutions for businesses.

In July 2012, North State enhanced their Plex Advanced TV offering, providing
customers the highest quality interactive TV services available. Supported by
Zhone's cutting edge ONTs with integrated Residential Gateway functionality,
North State has since then moved more than 5,000 live customers to the new
platform. With Zhone as the access platform, the ONT acts as a smart device
providing full gateway functionality, thus eliminating the requirement for a
second device inside the home to control routing functionality needed to
deliver enhanced features.

"Zhone has proven to be a valuable partner in our growth strategy over the
last 12 years, providing the technology solutions and support needed to design
flexible access networks for the latest service offerings," said Royster
Tucker III, chief operating officer of North State. "Zhone's support of our
video platform and the ability of the MXK system to rapidly and effectively
support our unique network traffic needs will help improve our ability to
deliver IPTV services effectively to our customers. With the migration
flexibility of the existing MALC installed base, we were able to ensure that
the new network build, utilizing the MXK system, would be completed
cost-effectively."

Zhone's consistent leadership and solution efficiencies have not only enabled
North State Communications to expand the reach of its services, but rapidly
upgrade all of its offerings when needed to maintain a competitive edge.
Innovative IPTV services, such as Plex Advanced TV, enable North State
Communications to deliver a consistent premium entertainment experience across
multiple screens and networks.

"The rapid deployment of Plex Advanced TV, using Zhone's MXK is a testament to
the unique flexibility we have in supporting a variety of Gigabit Passive
Optical Network (GPON) and Active Ethernet (AE) service models," said Brian
Caskey, chief marketing officer at Zhone. "Specifically, Zhone's MXK platform,
in combination with other solutions from the Zhone FiberHome(TM) portfolio,
provides the cost efficiency needed to deliver advanced triple-play services
in a highly competitive price range."

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.

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, 2011 and the
Company's quarterly report on Form 10-Q for the quarters ended March 31, 2012,
June 30, 2012 and September 30, 2012. 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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Source: Zhone Technologies, Inc via Thomson Reuters ONE
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