Zhone Technologies, Inc : Zhone Partners with MegaSys for Advanced Utility Network Management Offering

  Zhone Technologies, Inc : Zhone Partners with MegaSys for Advanced Utility
                         Network Management Offering

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

 Zhone Partners with MegaSys for Advanced Utility Network Management Offering
 MegaSys' Telenium system to be integrated into the Zhone IMACS Product Line

Oakland, CA -March 5, 2013- Zhone Technologies, Inc. (NASDAQ: ZHNE), a global
leader in FTTx network access solutions, today announced a strategic
partnership with MegaSys for the integration of its Telenium system into the
Zhone IMACS product line. This integration provides utility customers, such as
energy providers, carrier class telecom networks and government agencies with
unsurpassed processing power, network management capabilities, scalability and
database growth opportunities, helping them to meet more stringent Power and
Utility Network Management and operational requirements.

The Zhone IMACS product line - touting more than 150,000 systems deployed
worldwide - offers utilities the most flexible and robust array of integrated
network diagnostic and fault isolation capabilities on the market. Through the
integration of MegaSys' Telenium system, the Zhone IMACS now provide utility
operators with fast, feature rich network management software. Structured on a
high-performance object oriented database, Telenium offers operators essential
features including auto-population of network architecture, circuit management
capabilities, high throughput alarm processing and network element backup.

"This  partnership  merges  two  well-known  companies  and  products  in  the 
utilities market  - pairing  together  MegaSys' reputable  network  management 
system with  Zhone's  widely  deployed intelligent  channel  bank,"  said  Joe 
Fortin, associate  vice  president  of  Zhone's TDM  products  group.  "As  an 
integrated solution,  we can  provide customers  with the  most versatile  and 
scalable management system."

Recognized five times by the Utilities Telecom Council (UTC) as the Best
Telecom Services Product, MegaSys' Telenium network management software
package is designed to provide telecommunications, cable, government and
utility markets with the tools they need to keep their network performing at
optimal levels.

"The concept of an integrated access for advanced voice and data applications
began with the introduction of the IMACS," said Brian Caskey, Zhone's chief
marketing officer. "Zhone has not strayed from this vision. With the
integration of MegaSys' Telenium system, we will continue to provide customers
with the fastest and most complete network management solution available
today."

The versatility, scalability and ease of configuration of MegaSys' Telenium
are what make it the network management solution of choice for energy
providers, carrier class telecom networks and government agencies. Features
include:
· Fault Management - Processes network alarms in real-time to isolate
and fix problems quickly.
· Configuration Management - Configures and manages network elements
from multiple locations.
· Accounting Management - Provides an up-to-date list of what
equipment is in the network
· Performance Monitoring - Analyzes graphical trends and service
chains to make informed decisions.
· Security Management - Keeps network and data safe through advanced
security features.

Optimized for the unique needs of utilities, the Zhone IMACS support a wide
range of specialty traffic, including transmission line protection control
(EIA-232 electrical and IEEE C37.94 optical), SCADA, surveillance video,
substation automation and alarms, radio, Ethernet and telephony.

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.

About MegaSys
MegaSys® Computer Technologies is a major supplier of advanced Network
Management Systems for the telecommunications market based on its flagship
product Telenium®. MegaSys has developed the most powerful and flexible
network management system available, designed on an intelligent, high
performance, object oriented database that provides unsurpassed processing,
network management and database growth. Earning a reputation as a world-class
performer in network management, MegaSys has delivered Telenium solutions
across North America, Asia-Pacific and Europe. MegaSys customers include
wireless and broadband carriers, CLECs, IXCs, cable companies, private
utilities and state agencies, ranging in size from small regional networks to
large national networks. Additional information is available at
www.megasys.com.

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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