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Zhone Technologies, Inc : Tilgin Teams with Zhone Technologies for Connected Home Ecosystem

 Zhone Technologies, Inc : Tilgin Teams with Zhone Technologies for Connected
                                Home Ecosystem

Contacts

Aurora Arlet             Zhone Investor Relations     Eric Hjelmestam
Edelman for Zhone Public Tel: +1 510.777.7013         Vice President Solution &
Relations                                             Marketing, Tilgin
Tel: +1 404.460.8578     Fax: +1 510.777.7001         Tel: +46 8 572 387 33
E:                       E:                           E:
aurora.arlet@edelman.com investor-relations@zhone.com eric.hjelmestam@tilgin.com

      Tilgin Teams with Zhone Technologies for Connected Home Ecosystem

  Tilgin TR-069 Auto Configuration Server, tGem, and Zhone's indoor GPON ONT
             family complete successful interoperability testing

Stockholm, Sweden and Oakland, CA, May 7, 2013: Tilgin, a leading provider of
solutions for multi-play and FTTx broadband access and Zhone Technologies, a
global leader in FTTx network access solutions, today announced a strategic
partnership to integrate Tilgin's TR-069 management suite, tGem, with Zhone's
indoor GPON ONT product line - providing operators with a robust plug-and-play
network management solution for triple-play offerings.

In a continued effort to provide the industry with cutting-edge solutions for
triple-play delivery, Tilgin strengthens its Connected Home ecosystem by
teaming up with a leading FTTx access solution provider and thereby position
tGem as a respected management platform for the GPON market.

"All TR-069-enabled GPON devices can now reap the benefits of next-generation
remote management solutions," said Eric Hjelmestam, vice president Solution &
Marketing at Tilgin. "This allows operators to deliver a rich service
portfolio to their subscribers from day one, in a controlled way, and with
high levels of customer satisfaction."

"Through this strategic partnership, Zhone opens up the capability to provide
remote management for the entire TR-069 ecosystem," said Brian Caskey, chief
marketing officer at Zhone Technologies. "Working together, we will continue
to provide operators with the fastest and most complete remote network
management solution available today."

Tilgin's ACS, tGem, is a comprehensive remote management platform for the
management of devices compliant with Broadband Forum's TR-069 standard. tGem
addresses the full life-cycle of Customer Premise Equipment (CPE) devices in a
multi-vendor context: from initial activation to service upgrade, from
proactive maintenance procedures to subscriber care. Delivering remotely
managed services is an essential part of all successful service providers'
business strategy. This approach keeps the operational cost low while at the
same time increasing the base of new revenues in a timely manner. Another
essential key to success is to maintain customer satisfaction high and reduce
churn. With its Intelligent Mass Management concepts and Alarms and Monitoring
features, Tilgin ACS delivers on all accounts.

Zhone's indoor GPON ONT family has many options for deployment of services.
Models range from a single Ethernet port to a model with 24 voice ports and 24
Ethernet ports allowing the service provider to choose the right model for the
job. The indoor GPON portfolio also includes models with T1/E1 interface for
transport over a packet network.

-End -

About Tilgin
Tilgin's high-performance, software-controlled home gateways and remote
management solutions turn online homes into a profitable business for
operators and a personalized experience of quality and simplicity for their
customers. Our telecom-grade solutions allow for managed services - for triple
play and beyond - to be introduced instantly and individually. With easy
integration in operational and business support systems, they substantially
reduce operators' cost while creating loyal and satisfied customers and a
strong brand. Tilgin systems and solutions are deployed at more than 100
operators in more than 30 countries giving Tilgin a strong client base with a
broad international reach. Tilgin was founded in 1997. Tilgin is headquartered
in Kista, Sweden, and has a network of international sales partners.

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 http://www.sec.gov, including without limitation, the
Company's annual report on Form 10-K for the year ended December 31, 2012 and
the Company's quarterly report on Form 10-Q for the quarter ended March 31,
2013. 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.

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Source: Zhone Technologies, Inc via Thomson Reuters ONE
HUG#1699759