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

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™ 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™ or Zhone FiberCell™ 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.

Contacts:

Zhone Investor Relations Tel: [phone] Fax: [phone] Email: [e-mail]		Zhone Public Relations Tel : [phone] Email: [e-mail]

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.

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