Zhone Technologies, Inc : Klisa Telecom Selects Zhone to Provide Advanced Broadband Services to 20,000 Subscribers 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: firstname.lastname@example.org E: email@example.com Klisa Telecom Selects Zhone to Provide Advanced Broadband Services to 20,000 Subscribers Brazilian service provider deploys MXK for Fiber and Copper based MSAN services Oakland, CA -Feb 5, 2013- Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in FTTx network access solutions, today announced that through a partnership with reseller Digistar, Brazilian company Klisa Telecom has deployed the Zhone MXK solution to support advanced broadband services in the city of Montes Claros, Brazil. The company also selected the platform for 10 additional cities in the state of Minas Gerais, Brazil. Klisa Telecom plans to offer high speed voice and data services to their customers using the MxK 819 with a mix of GPON, ADSL+POTS and VDSL2+POTS combo cards for FTTx services. Paralleling Brazil's rapid economic growth, the number of broadband subscribers in 2012 grew 51.5 percent year-over-year according to Brazil's Associacao Brasileira de Telecomunicacoes (Telebrasil). Despite growing consumer demand, the region suffers from a lack of affordable high speed links and wireless technologies in non-licensed frequencies not feasible as a solution to improve the situation. To meet the growing demand for advanced broadband services in the region, Klisa Telecom was determined to bring new and competitive access technologies to the Montes Claros area. Klisa Telecom selected Zhone's solutions due to its scalability and ease of deployment, along with the company's reputation for high quality customer service. "We selected Zhone's MxK to provide a solution that both improved our customers' services speeds, as well as overall affordability," said Edson Xavier Veloso Junior, Klisa Telecom's technology director. "The MxK allowed us to mix a variety of technologies into the same chassis, expanding our service offerings over fiber and incorporating new products over copper." "The Klisa Telecom deployment, and the recently announced Ligue deployment illustrate Zhone's continued momentum in Latin America," said Brian Caskey, Zhone's chief marketing officer. "The MxK has the perfect combination of access interfaces, density and price for operators in Brazil and the international market - as a whole." Zhone's MXK platform is a fully redundant, carrier-grade all-IP platform and the industry's first terabit access concentrator. Featuring industry-leading density, scalability and switching capacity, the MXK provides non-blocking capacity of up to 3,600 100 Mbps GPON subscribers or 360 1G Active Ethernet subscribers. About Klisa Telecom Klisa has a nation-wide license to operate multimedia communications services since 2008 and its headquarters are located in Montes Claros, northern Minas Gerais state. Klisa has a management and operation team formed by professionals that strive to provide high quality services to their customers. Klisa business focuses on providing network infrastructure in two main business segments, business lan to lan connectivity and internet access. The company currently provides access services to approximately 20000 subscribers in an area of 300Km around Montes Claros using wireless and fiber optic networks. About Digistar Digistar is a Brazilian company that since 1999 provides solutions to the IT and telecommunication market, through a well-structured quality policy and actions aimed at improving the quality, provides products for high availability and reliability. Digistar is located in the São Leopoldo Technology Park in Rio Grande do Sul state(RS). Partner Zhone Technologies in 2007 and it is specialized in converging solutions in voice, data and video. Digistar also manufactures a variety of products for the telecommunications market, such as routers, gateways, modems, CPEs, PBX and management software as well as CTI (Computer Telephone Integration) solutions for call centers for hotels, hospitals and medium to large size companies. Digistar's mission is to develop, produce and sell high quality products and services with the latest technology and optimal cost. 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. ### ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Zhone Technologies, Inc via Thomson Reuters ONE HUG#1675408
Zhone Technologies, Inc : Klisa Telecom Selects Zhone to Provide Advanced Broadband Services to 20,000 Subscribers
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