Zhone Technologies, Inc : Ligue Telecom Leverages Zhone for Full Fiber Network Deployment in Brazil

Zhone Technologies, Inc : Ligue Telecom Leverages Zhone for Full Fiber Network
                             Deployment in Brazil

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

  Ligue Telecom Leverages Zhone for Full Fiber Network Deployment in Brazil
       MXK, zNIDs deliver VOIP and data services to customers in Brazil

Oakland, CA - Jan 31, 2013- Zhone Technologies, Inc. (NASDAQ: ZHNE), a global
pioneer in FTTx network access solutions, announced today that its
industry-leading MXK(TM) multi-service access node (MSAN) system has been
deployed as the core enabler of Ligue Telecom's new Gigabit Passive Optical
Network (GPON) solution in Brazil. A combination of the MXK and Zhone Network
Interface Device (zNID) Optical Network Terminals (ONT) were used to support
customers across the service footprint. 

Ligue Telecom, servicing Brazil since 2006, provides VOIP and data services
toresidentialand business customers and also provides wholesale termination
for otherproviders and companiesin the Parana stateof Brazil, one of the
fastestdeveloping parts of the country. Ligue Telecom's choice to deploy
GPON is a direct response to customer demand for higher speed, premium
services with flexible pricing. After evaluating the MXK, Ligue Telecom found
they could maintain competitive service tiers while achieving faster return on
investment (ROI) over lower capacity platforms. The service provider began
integrating Zhone's MXK terabit access platform into its network in 2012 and
plans to add premium GPON services, expanding the network to service several
additional cities in the region by mid-2013.

"GPON significantly expands Ligue Telecom's service offering and gives them a
competitive edge," explained Brian Caskey, chief marketing officer at Zhone.
"In fact, GPON's unique high-bandwidth capability encourages operators - and
gives them the expanded resources - to launch future-focused,
revenue-generating services that are increasing demand."

"Zhone's GPON solutions give us the bandwidth capacity and service agility to
expand our network in a truly future-proof manner," said Romeu Medeiros,
technical director for Ligue Telecom. "With our expanded bandwidth capacity,
we are now able to efficiently deliver the high-quality advanced services that
will accelerate our growth strategy in the coming months. Zhone's portfolio of
zNID ONTs and the MXK help us extend our reach with our customers."

Ligue Telecom will immediately benefit from the platform's streamlined network
upkeep, output management and customer provisioning capabilities, which
minimize the resources needed for support, maintenance and technical personnel
training. The MXK's ability to support Active Ethernet and GPON on the same
system enables Ligue Telecom to configure its networks with maximum
flexibility and efficiency. Longer term, Zhone's future-proof MXK platform
offers Ligue Telecom multi-access points at highly efficient capacities and
costs that will allow the operator to seamlessly and cost-effectively
integrate additional broadband technologies such as 10G GPON as customer
demand dictates.

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

For more information about Zhone's MXK or zNID solutions, please visit
http://www.zhone.com. 

About Ligue Telecom
Ligue Telecom is a company specialized in multimedia communication services.
Acting since 2006, we have MCS (Multimedia Communication Services) and the
FSTS (Fixed Switched Telephone Services) licenses, being able to act in fixed
telephony, internet and lP telephone areas.

Using advanced technology, Ligue Telecom provides groundbreaking solutions and
we are permanently committed to provide great quality in services, with data
security, productivity and cost reduction for the satisfaction of our
customers, even if they are in residential market, corporative or public
sector.

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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"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
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addition, please refer to the risk factors contained in the Company's SEC
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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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