Zhone Technologies, Inc: Cable Operator, TVFuego Selects Zhone Technologies for New GPON Network

 Zhone Technologies, Inc: Cable Operator, TVFuego Selects Zhone Technologies
                             for New GPON Network


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

   Cable Operator, TVFuego Selects Zhone Technologies for New GPON Network
  Zhone enables one of the largest GPON deployments in Argentina, continuing
                              traction in LATAM


Oakland, CA - September 26, 2013 - Zhone Technologies, Inc. (NASDAQ: ZHNE), a
global leader in FTTx network access solutions, today announced that TVFuego
has selected Zhone for a new GPON network deployment that will enable greater
bandwidth support for its customers. Headquartered in Rio Grande on the island
of Tierra del Fuego, Argentina, cable operator TVFuego will deploy Zhone's MXK
and zNIDs to provide triple play services to approximately 18,000 residential
and business subscribers in the Rio Grande area. This is one of the largest
GPON deployments to date in Argentina.

Prior to Zhone's deployment, TVFuego offered triple play through Data Over
Cable Service Interface Specification (DOCSIS). TVFuego chose to deploy GPON
because it is the only technology that allowed growth without immediate
limitations, providing a more scalable solution for their future bandwidth
needs. Through implementing the GPON network, the operator is now able to
offer a wide range of services at lower costs.

"Zhone's forward-looking approach to TVFuego's specific needs, as well its
impressive portfolio of products and local support, made it the superior
choice for our new GPON network," said Jose Luis Paños, chief executive
officer of TVFuego. "Zhone's services have given TVFuego the ability to
provide our customers with the increased bandwidth capacity and reliability of
services that they desired."

The island of Tierra del Fuego has one of the toughest environments for
outside fiber because of year-round high winds and below-freezing temperatures
in the winter. The island was recently connected to a new mainland backbone
with a new fiber that allowed them to access higher speed connections,
substantially increasing bandwidth capabilities in the area. Zhone needed to
work closely with local reseller, Communications Partner, to ensure the design
and engineering for deployment of the MXK and ONTs were adaptable to TVFuego's
specific needs.

"Zhone provides truly scalable solutions and this deployment is an excellent
example of the adaptability of our products, expanding our foothold on the
cable market," said Brian Caskey, chief marketing officer at Zhone
Technologies. "This year, Zhone has made significant traction in Latin
America, with recent deployments in Brazil, Mexico and Argentina. We are
excited to partner with TVFuego to provide faster and more reliable triple
play services to its customers in Tierra del Fuego."

Zhone has built the industry's most comprehensive portfolio of FTTx customer
premise equipment, for both Active Ethernet and GPON standards, including a
variety of configurations for residential, business, MDU, and cellular
backhaul applications. For more information on Zhone's innovative solutions,
please visit Zhone's FiberHome(TM) portfolio or go to 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,"
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"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
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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 and the
Company's quarterly report on Form 10-Q for the quarters ended March 31, 2013
and June 30, 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
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