Zhone Technologies, Inc: Zhone Technologies Enters 2014 with Continued Momentum for MXK and Growth for FiberLAN

    Zhone Technologies, Inc: Zhone Technologies Enters 2014 with Continued
                   Momentum for MXK and Growth for FiberLAN

Contacts


Aurora Arlet                       Zhone Investor Relations
Edelman for Zhone Public Relations Tel: +1 510.777.7013
Tel: +1 404.908.3186               Fax: +1 510.777.7001
E: aurora.arlet@edelman.com        E: investor-relations@zhone.com



Zhone Technologies Enters 2014 with Continued Momentum for MXK and Growth for
FiberLAN
Leader in FTTx network access solutions shows increased traction in Q4 with
5,772 MXK system deployments

Oakland, CA - January 30, 2014 -Zhone Technologies, Inc. (NASDAQ: ZHNE), a
global leader in FTTx network access solutions, brings in the new year with
continued momentum for the global deployment of its industry-leading MXK(TM)
multi-service access node (MSAN), and substantial growth for its Gigabit
Passive Optical Network (GPON) and Active Ethernet (AE). Additionally, the
company continues to see a rise in deployments of its Optical LAN solution,
FiberLAN.

Zhone shipped approximately 400 MXKs in Q4 2013, expanding the total number of
MXK platform deployments to more than 5,700 units worldwide. This increase is
a direct reflection of market demand for high-speed, fiber capable solutions.
According to a report by Vertical Systems Group, Ethernet will contribute more
than 75 percent of total global business bandwidth by 2017. Demonstrating
strong industry leadership, Zhone continued to focus deployment efforts on
Gigabit Passive Optical Networking (GPON). The company increased its GPON
subscriber capacity to 38 million, and deployed more than 590,000 FTTx OLT
ports and 118,000 zNID ONT ports.

"Each of Zhone's solutions, including its MXK platforms, provide business and
residential customers with unique fiber solutions that expand service
offerings and increase value through future opportunity for network
enhancement," said Brian Caskey, chief marketing officer at Zhone
Technologies. "Zhone continues to drive momentum for its FTTH network access
solutions across global markets while also generating interest in its Optical
LAN solution."

Zhone's FiberLAN is a high-performance, high density GPON based Optical LAN
solution (OLS) that delivers high speed data, voice and video to multi-level,
multi-unit commercial and industrial complexes, including hotel rooms,
bandwidth demanding desktops and work-stations. Zhone's FiberLAN conserves
energy and reduces operating costs. In Fall 2013, a Crowne Plaza Hotel in
Clayton, Mo. deployed Zhone's FiberLAN to provide its guests with reliable
high-speed Internet and greater bandwidth availability, ultimately increasing
hotel occupancy by 20 percent in the 6 months following the deployment.

Also, in late 2013, Zhone announced it was taking on a leadership role as a
founding member of the Association for Passive Optical LAN (APOLAN). The
non-profit's mission is to support the growth of Passive Optical LAN and Zhone
continues to be a strong advocator of this mission.

Zhone's FiberHome portfolio of products and solutions fulfills the network
requirements of both international and domestic customers' broadband expansion
efforts for residential users. Featuring industry-leading density, scalability
and switching capacity, the MXK is the industry's first terabit access
concentrator and provides non-blocking capacity of up to 3,600 100 Mbps GPON
subscribers or 360 1G Active Ethernet subscribers. Additionally, growing
opportunities in business services delivery provide ongoing prospects for
Zhone to further deploy the MXK globally with the company's FiberLAN solution.

For more information about Zhone, or to learn more about its various
applications, please visit the Zhone FiberHome(TM) or Zhone FiberCell(TM)
portfolios on Zhone's website 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
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 and the
Company's quarterly report on Form 10-Q for the quarters ended March 31, 2013,
June 30, 2013 and September 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 Globenewswire
HUG#1757925
 
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