Zhone Technologies, Inc : Warner Properties Communications Selects Zhone for VDSL2

 Zhone Technologies, Inc : Warner Properties Communications Selects Zhone for
                                    VDSL2

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

                                      

                                      

           Warner Properties Communications Selects Zhone for VDSL2

 Deployment provides high speed connections for buildings in the Twin Cities
                                    market

                                      

Oakland, CA -April 3, 2013- Zhone Technologies, Inc. (NASDAQ: ZHNE), a global
leader in FTTx network access solutions, today announced that Warner
Properties Communications (WPC), a full-service satellite/Internet provider,
has selected Zhone for the integration of its VDSL2 technology. Through this
deployment, WPC will be able to provide high speed data, video and voice
services to its more than 15,000 subscribers in the Twin Cities market.

VDSL2 is a technology that enables telcos to maintain bottom-line costs while
remaining competitive with cable providers by delivering fiber-like speeds
over copper lines. For WPC, it specifically offers symmetrical access
mirroring existing capabilities with Ethernet deployments consisting of 10/100
mbps port speeds. VDSL2 also allows WPC to scale capital expenditure as
subscribers increase, allowing for initial deployment costs to be more
reasonable for its current footprint.

"Warner Properties Communications needed a solution for buildings not wired
with category five cables or better, and thus could not use Ethernet. Coax
solutions such as DOCSIS were too expensive and not suitable for a deployment
this size," said Chase Rydberg, director of network operations at Warner
Properties Communications. "Zhone's VDSL2 products allowed us to have a
symmetrical last-mile solution for every building we provide with Internet
access."

Specializing in high performance and cost effective Internet access to low and
high-rise residential buildings, Minn.-based WPC works with providers that
offer metro fiber solutions to bring reliable high speed access to the
buildings. WPC also works with property owners to establish a building-wide
network, enabling homeowners to have access to their own available
infrastructure.

"Zhone's VDSL2 will enable Warner Properties Communications to provide
buildings with fiber-like speed over copper, increasing bandwidth and
addressing challenges for Ethernet," said Brian Caskey, chief marketing
officer at Zhone. "The solution is cost effective and customers will benefit
from increased reliability and efficiency."

VDSL2 technology allows operators to meet immediate challenges with a
comprehensive solution while preparing their networks for the imminent and
eventual switch to a complete FTTH network. According to a recent report by
RVA, the annual direct investment in FTTH networks will reach $4.7 billion by
2017 and total investment in FTTH over the next five years will be $18
billion.

Zhone's FiberHome portfolio of products and solutions fulfills the network
requirements of broadband expansion efforts for residential users. For more
information about Zhone's various applications, including VDSL2, please visit
the Zhone FiberHome(TM) portfolio.

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, 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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