Zhone Technologies, Inc : Zhone Technologies Compliant with NASDAQ Listing Requirements

  Zhone Technologies, Inc : Zhone Technologies Compliant with NASDAQ Listing
                                 Requirements

Zhone Investor Relations:       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

Oakland, CA -  August 6,  2013 - Zhone  Technologies, Inc.  (NASDAQ: ZHNE),  a 
global leader  in FTTx  network  access solutions,  announced today  that  the 
Company received formal notice from The  NASDAQ Stock Market LLC on August  6, 
2013, advising that the Company has regained compliance with NASDAQ's  minimum 
bid price requirement,  as set forth  in NASDAQ Listing  Rule 5550(a)(2),  and 
otherwise satisfies  all  requirements for  continued  listing on  The  NASDAQ 
Capital Market. Shares of Zhone's common stock closed Monday, August 5,  2013 
at $3.01 per share. Accordingly, the matter has been closed.

  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 products 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 inthe Company'sSEC
filings available at www.sec.gov, including without limitation,the
Company'sannual 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-looking statements for any reason.

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Source: Zhone Technologies, Inc via Thomson Reuters ONE
HUG#1721525