Advanced Communications Technology Selects Zhone for Delivery of Integrated Voice and Data Service.

Business Editors/High-Tech Writers

OAKLAND, Calif.--(BUSINESS WIRE)--Sept. 4, 2003

Zhone's MALC Packet Digital Loop Carrier and Sechtor 100 Gateway

Selected for Expanded Voice and Data Service Offerings

Zhone Technologies today announced that Advanced Communications Technology (ACT), a leading provider of telecommunications services to underserved Wyoming markets, has selected Zhone's Single Line Multi-Service (SLMS(TM)) architecture to provide their subscribers with higher value broadband offerings, including DSL and advanced voice services.

As a key component to Zhone's architecture, the Multi-Access Line Concentrator (MALC) provides unified aggregation, provisioning, and management of POTS, T1, DSL, and ATM connections in a single, centrally manageable device. The Sechtor 100 delivers full-featured packet voice gateway functionality at a low-cost entry point.

"The quick deployment of broadband services coupled with voice offers tremendous revenue potential, but it typically entails costly technical hurdles that need to be overcome," said Tim Green, vice president and general manager of ACT. "As a leading fiber optic carrier throughout Wyoming, our challenge is to rapidly deliver the highest quality broadband data and voice services that our customers demand, while controlling costs. Zhone's solutions allow us to expand our network with an integrated platform that simplifies network management, reduces service provisioning intervals and expands our service offerings to provide convenient, cost effective, and secure voice and data solutions to our customers."

"Zhone is developing products that address the real world problems that facing service providers today. Namely, the build-out of a network infrastructure that can deliver broadband solutions today, while providing the scalability to allow for additional applications and services of tomorrow," said Marty Hahnfeld, vice president of North American sales at Zhone. "ACT understands the importance of extending and building on to its existing infrastructure in order to capture this enormous market opportunity for delivering high value broadband services."

Expanding Services and Applications

Zhone's Single Line Multi-Service (SLMS(TM)) architecture will allow ACT to connect copper, fiber, wireless and coaxial loop plants through a single integrated infrastructure. The Zhone Management System (ZMS(TM)) offers a single, consistent interface from which to diagnose, troubleshoot, provision, and bill across all services. The MALC plays a key role in the SLMS framework by supporting both traditional voice and broadband data services in a single platform, delivering any service to any subscriber over either a single packet or dual voice and packet infrastructure.

About Advanced Communications Technology, Inc. (ACT)

ACT is a full service communications solutions provider located in Sheridan, Wyo. Small business or large, Inter-exchange carrier or ISP, ACT's advanced fiber optic network truly provides "access without limits."

ACT began offering communications solutions in 1997 under parent company Range Telephone Cooperative. In 2001, ACT completed the installation of an advanced fiber optic network between Montana and Wyoming. This new facility connects with the Montana Advanced Information Network (MAIN) and major interstate carriers in Casper, Wyo.

ACT completed the installation of new fiber optic communications lines in Sheridan, Wyo., and has begun offering a full suite of state-of-the-art communications services this year, including high speed Internet and custom calling features.

For more information about ACT and their services, please visit the ACT Web site at http://www.actaccess.net or e-mail [e-mail].

About Zhone Technologies, Inc. (Zhone)

Zhone's strategy combines existing solutions with Zhone's internally developed intellectual property to create a portfolio of scalable next-generation network products supporting a rich array of voice, data, video, and entertainment services. The company was founded by the senior management team that grew telecommunications pioneer Ascend Communications, Inc., from its startup roots to the multi-billion-dollar company acquired by Lucent Technologies (NYSE:LU) in June 1999. In July 2003, Zhone and Tellium (Nasdaq:TELM) announced that the two companies have entered into a definitive agreement to merge the two companies. Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), FlexBand(TM) Multi-service port, Zhone Management System (ZMS(TM)), Broadband Access Node (BAN(TM)), Multi-Access Line Concentrator (MALC(TM)), AccessNode(TM) and Universal Edge(TM) 9000 products (purchased from Nortel Networks -- NYSE/TSE: NT), Sechtor(TM) universal voice gateway, the Z-Edge(TM) access products and RAPTOR(TM) DSLAM.

Forward-Looking Statements 

Certain matters discussed in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements in this release include, but are not limited to the ability to provide advanced new access and transport offerings for the company's customers, the competitive landscape in its industry, prevailing market conditions and the company's ability to successfully fulfill its customers' needs. Actual results could differ materially from those projected in or contemplated by the forward-looking statements. Factors that could cause actual results to differ include general economic conditions, the pace of spending and timing of economic recovery in the telecommunications industry and in particular the access networks industry, the company's inability to sufficiently anticipate market needs and develop products and product enhancements that achieve market acceptance, and higher than anticipated expenses the company may incur in future quarters. In addition, please refer to the risk factors contained in Zhone's SEC filings, including, without limitation, Zhone's Registration Statement on Form 10 filed with the SEC on April 30, 2003, as amended.

For more information about Zhone and its products, please visit the Zhone Web site at http://www.zhone.com or e-mail [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.