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Zhone Technologies, Inc : Klisa Telecom Selects Zhone to Provide Advanced Broadband Services to 20,000 Subscribers

  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: aurora.arlet@edelman.com        E: investor-relations@zhone.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.

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Source: Zhone Technologies, Inc via Thomson Reuters ONE
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