Zhone Technologies, Inc : Farmers Telephone Selects Zhone for Business and Residential IPTV Deployments

  Zhone Technologies, Inc : Farmers Telephone Selects Zhone for Business and
                         Residential IPTV Deployments

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

Farmers Telephone Selects Zhone for Business and Residential IPTV Deployments
South Carolina service provider leverages ADSL Residential Gatewayproducts to
                    meet growing demand for IPTV services

Oakland, CA - Jan 30, 2013 - Zhone Technologies, Inc. (NASDAQ: ZHNE), a global
leader in FTTx network access solutions, today announced a new ADSL deployment
with Farmers Telephone Cooperative, Inc., a South Carolina based triple-play
service provider that has served Clarendon, lower Florence, Lee, Sumter and
Williamsburg counties for more than 60 years. Farmers Telephone will deploy
Zhone's 6519 ADSL Residential Gateway products to deliver IPTV services to
business and residential customers.

The demand for IPTV services is growing at a rapid rate globally, presenting
an opportunity for service providers to generate new revenue streams. In fact,
there have been more than 15 million new IPTV subscribers during the past year
according to a survey published on October 16, 2012 by Broadband Forum. As the
demand forIPTV steadily increases, ADSL will continue to dominate the
telecommunications industry. Service providers like Farmers Telephone are
turning to Zhone's 6519 ADSL Residential Gateway technology because it enables
faster data transmission overcopper than a conventional voiceband modem. 

"Zhone's ADSL technology provides an excellent platform for delivering IPTV
services," said Jay Brown, chief network officer for Farmers Telephone.
"Additionally, the company's customization program reduces installation time.
The superior understanding and implementation of services to support various
IPTV middleware made Zhone the best partner for this deployment."

Zhone's 6519 ADSL Residential Gateway products provide an advantage with the
integration of Option 121 and other features required for the IPTV deployment.
The 6519 ADSL Residential Gateway products have been successfully used for
residential and business deployments for high-speed internet access (HSIA) and
video-on-demand services.

"North America is leading in global IPTV adoption," said Brian Caskey, chief
marketing officer for Zhone. "The growing demand for IPTV services presents
great opportunity for U.S. service providers to reach new subscribers and
generate revenue. Because new ways to engage in media gives consumers greater
choice of how to watch television, service providers that offer IPTV will be
able to meet the demand for new services and gain profit benefits from this
emerging market. Through the deployment of ADSL Residential Gateway
technology, Zhone helps its customers capitalize on this trend."

For more information about Zhone's ADSL Residential Gateway technology, please
visit http://www.zhone.com/products/6519-A1/

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
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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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