Zhone Technologies, Inc : Zhone Selected by Electrical Cooperative for First Utility Provided Fiber Network in Buenos Aires

 Zhone Technologies, Inc : Zhone Selected by Electrical Cooperative for First
                Utility Provided Fiber Network in Buenos Aires

Contacts

Kierstin Coatney                   Zhone Investor Relations
Edelman for Zhone Public Relations Tel: +1 510.777.7013
Tel: +1 404.460.8599               Fax: +1 510.777.7001
E: kierstin.coatney@edelman.com    E: investor-relations@zhone.com



  Zhone Selected by Electrical Cooperative for First Utility Provided Fiber
                           Network in Buenos Aires

   Argentinian utility deploys MxK and zNID GPON ONTs to provide high speed
                                  broadband

Oakland, CA -March 18, 2013- Zhone Technologies, Inc. (NASDAQ: ZHNE), a global
leader in FTTx network access solutions, today announced that Cooperativa
Eléctrica de Luján has selected Zhone for a new GPON deployment in the city of
Luján through a strategic partnership with Trans Industrias Electrónicas S.A.
Zhone's MxK 319 and zNID 2402 GPON ONTs were selected for the network to
increase the cooperative's bandwidth offering to its customers and to also
provide opportunities to be more competitive within the industry.

Cooperativa Eléctrica de Luján is the incumbent power supplier, servicing
approximately 40,000 customers in the Buenos Aires Province of Argentina.
Taking advantage of its footprint, the cooperative also offers internet access
services with a variety of copper and wireless technologies to its
subscribers. Recently, the cooperative decided to deploy fiber solutions to
better compete with major telecommunications and cable providers in the
region, choosing Zhone because of the company's reputation for proven
technology, high quality products and excellent customer service.

"We plan to deploy Zhone FTTH solutions to help us better position our
services against competitive offerings, as well as expand our offering into
areas where our competitors are currently lacking," said Pablo Fernández,
technical manager at Cooperativa Eléctrica de Luján. "Our decision to deploy
GPON is a direct response to customer desire for bandwidth speed and
affordability."

The deployment with the electrical cooperative in Latin America, made possible
through a strategic partnership with Trans Industrias Electrónicas,
strengthens Zhone's portfolio and aligns with its corporate focus to
continuously meet the highest standards of customer satisfaction by constantly
improving the capabilities, quality, and delivery of goods and services.
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.

"Zhone's MxK solutions will enable Cooperativa Eléctrica de Luján to compete
with other providers in the market while growing its service offerings," said
Brian Caskey, chief marketing officer at Zhone. "Zhone's portfolio of MxK and
zNID GPON ONTs will help expand the company's reach in the city and meet
customer demands for high speeds and bandwidth hungry applications, showing
product flexibility for adapting to markets other than traditional telcos."

Trans Industrias Electrónicas is an engineering company operating more than 25
years in the Argentinean telecommunication market. It has been a reseller of
Zhone products since 2005 and introduced Zhone DSLAM, MSAN, and OLTproducts
to more than 20 customers in the market. To emphasize this partnership, Zhone
and Trans Industrias Electrónicas will be conducting a joint presentation at
NPlay Córdoba on March 18 and 19 at the Sheraton hotel inCórdoba,Argentina.

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

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
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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, 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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