Attica Telecom Selects Zhone's Multi-Access Line Concentrator to Deliver Voice, Data and Video Services in Greece; Next-Generation Access Architecture Brings Cost-Effective Triple Play Services to the Cradle of Civilization.

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 Attica Telecommunications S.A. has selected and deployed Zhone's Multi-Access Line Concentrator (MALC(TM)) to provide its customers with leased lines and wholesale ADSL access throughout Athens, Greece.

Attica Telecommunications has installed Zhone's MALC, with ADSL 2+ and Gigabit Ethernet line cards to bring voice, data, video and wholesale internet access to customers in the wider Athens region. Voice and data traffic, as well as broadcast and multicast video streams, can be carried efficiently throughout Zhone's access network using the MALC's integrated Gigabit Ethernet transport with Resilient Packet Ring technology.

Zhone's comprehensive solution can be easily managed with the Zhone Management System (ZMS), a common flow-through provisioning and management platform. Zhone's ZMS management system has been OSMINE certified to facilitate integration into existing OSS systems. Attica Telecommunications' customers will begin introducing services mid September.

"Zhone offers the most cost effective and highest-density concentration of any broadband platform we have reviewed" said Themis Papaioannou, CEO, Attica Telecommunications. "Zhone's MALC enables our customers to simplify network integration and deliver the diversity of services required to compete. Reduced deployment and operations costs translate to improved service and greater rates for our customers."

"The MALC enables Zhone's customers to offer diversified, toll-quality voice and new premium data services while substantially reducing operating costs at the same time," said Mike Scheck, Zhone's vice president of Global Carrier Sales. "As with all of Zhone's products, the MALC leverages the service provider's investment in existing legacy networks, while allowing the flexibility to migrate seamlessly to emerging packetized voice technologies."

About Attica Telecommunications

Attica Telecommunications has created a large fiber optic Metropolitan Area Network in the wider Athens region to serve fixed and mobile telecom operators, service providers, ISPs, systems integrators and large public and private enterprises, offering to them leased lines of high quality and capacity. Attica Telecom connects the customer sites directly with fiber and can provide fully redundant connections, both in terms of path protection and equipment protection, guaranteeing the highest level of network availability. For more information, please visit: www.atticatelecom.gr.

About Zhone Technologies, Inc.

Zhone 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 ATM/IP DSLAMs, ReachDSL(TM), EtherXtend Ethernet in the First Mile bonded solutions, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With 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)2005 Zhone Technologies, Inc. All rights reserved.