Arialink Broadband Selects Zhone's New Compact, Full-Featured MALC 100 Product for Triple Play; New MALC 100 Gives Zhone the Most Comprehensive Set of Broadband Loop Carrier Solutions in the Industry.

OAKLAND, Calif. -- Zhone Technologies, Inc. (Nasdaq:ZHNE), the first company dedicated to building total-delivery solutions for voice, data and video content services worldwide, today announced that Lansing, Michigan-based Arialink has selected its new MALC 100 Multi-Access Line Concentrator (MALC(TM)) product. As Lansing's leader in Internet and telecommunication connectivity, Arialink selected Zhone's MALC 100 to deploy triple-play bundle packages of phone, cable TV and high-speed Internet. Zhone's new MALC 100 follows the company's market-leading MALC and Raptor products, which have been widely deployed by leading service providers around the world.

"Triple-play bundle packages allow residents to have high-quality services and provides low costs by bundling the service for a price that is less than the price of individual services," said Tim Lebel, Arialink Broadband's vice president of operations in Lansing, Michigan.

With support for both 48 POTS and ADSL2+ ports in a 1U chassis, Zhone's versatile MALC 100 allows service providers to bundle packages throughout their serving areas. And because of its compact size, the environmentally hardened MALC 100 can be deployed in central offices, remote terminals or subtended from existing cabinets.

"Service providers are turning to broadband loop carriers to deliver triple-play services. By simultaneously addressing the need for bandwidth, reach and interoperability, the MALC 100 allows Arialink to provide cost-effective voice, data and video services to its valued customers," said David Markowitz, vice president of marketing at Zhone. "As the newest member of Zhone's family of market-leading broadband loop carriers, the MALC 100 gives Zhone the most comprehensive set of BLC solutions in the industry."

The success of Zhone's MALC family of BLCs is being acknowledged not just by customer wins and market share, but also by telecom industry analysts. In November, an independent analyst firm awarded the MALC the highest ranking of any product in the space, edging out offerings from eight competing vendors. The MALC was also distinguished by industry analyst firm Current Analysis, which called it the only platform deemed "very threatening" to competitors.

"We believe the MALC is the only family of BLCs that provide in-service migration from TDM to IP Voice (VoIP) services with software-selectable emergency standalone capabilities," added Markowitz. "The MALC makes delivery of triple-play bundles possible today, while providing an elegant migration path to pure packet."

About Arialink

Headquartered in Lansing, Michigan, Arialink Broadband is a leading provider in connectivity for businesses, institutions and residential communities. For more information on Arialink Broadband, please visit www.arialink.com or call 517-492-1350.

About Zhone Technologies, Inc.

Zhone (Nasdaq:ZHNE) designs and manufactures network equipment for network operators worldwide. Zhone's products allow network operators to deliver a rich array of voice, data, video, and entertainment services over their existing networks while simultaneously retooling for converged packet-based voice (VoIP) and video (IPTV) over copper or fiber access lines.

Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Multi-Access Line Concentrator (MALC(TM)), Raptor(TM) and GranDSLAM(TM) ATM/IP DSLAMs, ReachDSL(TM) Technology, FiberSLAM(TM) Optical Line Terminal, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With over one million subscriber interfaces shipped and deployments at over 400 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses. For more information, please visit www.zhone.com. 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. Copyright (C) 2006 Zhone Technologies, Inc. All rights reserved. For more information, please visit www.zhone.com.