Zhone Technologies, Inc : AXTEL TV Over GPON: The Cutting Edge of Service Differentiation

  Zhone Technologies, Inc : AXTEL TV Over GPON: The Cutting Edge of Service
                               Differentiation

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

Julio Salinas                      Adrian De los Santos
AXTEL's Media Relations:           AXTEL's Investor Relations:
Tel: 52.81.8114.1144               Tel: 52.81.8114.1128
E: contacto@axtel.com.mx           E: IR@axtel.com.mx

      AXTEL TV Over GPON: The Cutting Edge of Service Differentiation
Mexico's Second-Largest Fixed-Line Telecom Operator Relies on GPON Solution to
                     Expand FTTx Services into New Cities

Oakland, CA -April 16,2013 - Zhone Technologies, Inc. (NASDAQ: ZHNE), a
global leader in FTTx network access solutions, today commemorates longtime
customer, AXTEL (BMV:AXTELCPO), for its successful launch of AXTEL TV in five
major Cities: Mexico City, Guadalajara, Monterrey, Querétaro and San Luis
Potosí. With more than 16,000 customers signed up since service was launched
in February, IPTV is already proving to be a winning strategy for AXTEL in the
residential and small and medium business market segments. This service is
offered over AXTEL's fiber-based Gigabit Passive Optical Network (GPON),
utilizing Zhone's MXK(TM) terabit-scale, multi-service access node (MSAN)
system and zNID optical network terminals (ONT).

Over the last year, AXTEL's customer base for voice and data services more
than doubled to 130,000 subscribers, due to its superior quality, reliability
and feature capabilities. Branded as AXTEL X-tremo, business and residential
customer service options include speeds of up to 150 Mbps in a symmetrical
way, and in a short time AXTEL X-tremo will increase the speed of the service
up to 200 Mbps. AXTEL is leveraging its existing GPON customer base by
enticing customers to add AXTEL TV to their service plan with special offers.
The GPON network is also being extended to two additional cities already.

AXTEL's IPTV Basic Plan includes 45 AXTEL IPTV SD channels, 4 HD channels and
50 audio channels. In the Ultra Plan there are 67 SD channels, 4 HD channels
and 50 audio channels. The most comprehensive plan is Total, which comes with
76 SD channels, 8 HD channels, 50 audio channels and Video on Demand. Ultra
and Total plans include DVR STB, which enables users to record from 50 to
1,000 hours of programming. For plans other than Total, Video on Demand can
also be acquired at additional fees.

"Zhone's GPON solutions exceed the performance, reliability and efficiency
levels that we need to be successful on our market strategy," said Victor Raul
Rangel, technology development director of AXTEL. "In addition, the company's
consistent strategic guidance, technical expertise and forward-looking product
roadmap have been critical enabling factors to realizing our business plan
both in the early stages of deployment and long-term."

Mexico provides tremendous potential for internet growth, with only roughly 25
percent of the population receiving Internet connectivity. Zhone's
industry-leading GPON solutions, including the
MXK and zNID platforms, provide a highly scalable and cost efficient medium
for delivering sophisticated services to large numbers of subscribers - thus
driving more widespread communications accessibility for consumers in Mexico.

"For AXTEL, 150 Mbps Internet access, triple play and other applications are
now possible thanks to a fiber access network which is no longer a bottle
neck," said Brian Caskey, chief marketing officer at Zhone. "Zhone is
recognized as a leader in GPON solutions globally and is committed to
providing AXTEL with a highly optimized, scalable and feature-rich solution
that will enable it to meet advanced connectivity goals for its customers."

AXTEL is benefiting from increased service differentiation across Mexico with
the integration of Zhone's zNID ONTs into the overall FTTH system. Designed to
meet AXTEL's specific network requirements, the GPON zNID platform delivers
best-in-class data throughput regardless of packet size to support the most
demanding FTTH applications the operator decides to offer.

Zhone's MXK is the industry's first intelligent terabit access concentrator
providing industry-leading density, throughput and switching capacity. With
non-blocking capacity of up to 3,600 100Mbps GPON subscribers or 360 1 Gigabit
Active Ethernet subscribers per chassis and well-proven single line
multi-service (SLMS) access operating system, MXK equips service providers
such as AXTEL with sophisticated service intelligence to guarantee a
consistently high quality experience for subscribers across all of Mexico.

For more information about the MXK platform or zNID ONTs, please visit
http://www.zhone.com.

About AXTEL
AXTEL is a Mexican telecommunications company with significant growth in the
broadband segment, the most advanced pay television service, and one of the
leading companies in information and communication technologies solutions in
the corporate, financial and government sectors. The Company serves all market
segments - corporate, financial, government, wholesale and residential with
the most robust offering of integrated communications services in Mexico. Its
world-class network consists of different access technologies like fiber
optic, fixed wireless access, point to point and point to multipoint links, in
order to offer solutions tailored to the needs of its customers. AXTELCPO
trades on the Mexican Stock Exchange since 2005.

Visit AXTEL website on www.axtel.com.mx

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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