Bayland Telephone Selects Zhone's Single Line Multi-Service Delivery Platforms for Voice and Data Services.

Business Editors/High-Tech Writers

OAKLAND, Calif.--(BUSINESS WIRE)--Sept. 16, 2003

Next-Generation Packet Digital Loop Carrier Allows Cost-Effective

Delivery of Voice and Data Services in Rural Markets

Zhone Technologies announced today that Bayland Telephone, Inc. (Bayland) a provider of local, long distance, wireless, internet, and data services headquartered in Abrams Wisconsin has selected Zhone's innovative Single Line Multi-Service (SLMS) architecture to support the company's comprehensive narrowband and broadband service offerings.

Using Zhone's SLMS architecture, Bayland is addressing the needs of a growing market that no other carrier has had the ability to successfully target. In this role, Bayland is providing services in its marketplace that were not previously available in its service areas.

"Zhone designed its Single Line Multi-Service (SLMS) architecture with a clear understanding of the business challenges service providers face in this rapidly changing telecommunications environment," said Roger Hermsen, President of Bayland. "We need to make the most of current infrastructure investments and preserve our existing revenue, but at the same time we also must lay the groundwork for the broad set of future services enabled by packet- and cell-voice technologies. Zhone's SLMS architecture is designed to smooth this transition."

Bayland is serving both residential and business subscribers around the state of Wisconsin. The network is now being further enhanced with the addition of Zhone's MALC and redundant Sechtor 100A product.

The MALC is the industry's first next-generation, high-density packet DLC specifically developed to support both traditional TDM and broadband access in a single platform, delivering any service to any subscriber over a single common infrastructure. Designed for outside cabinet deployments, MDU's and CO's, the MALC product family was developed specifically to extend the multi-service network across the local loop / last mile -- combining traditional voice including TDM-based POTS, xDSL (ADSL, SDSL, G.SHDSL, VDSL), T1/E1, ATM T1/E1, CAS, ISDN and BRI voice-over-packet and broadband data in a true carrier-class access platform.

In Bayland's network, Zhone's MALC enhances the network by providing the highest available density and backhaul flexibility all with integrated management and provisioning.

"Zhone's SLMS Architecture enables telephone operators to offer diversified, toll-quality voice and new premium data services while substantially reducing operating costs at the same time," said David Markowitz, Vice President of Marketing for Zhone. "As with all of Zhone's products, the MALC and Sechtor 100 leverage the service provider's investment in existing networks, while allowing flexibility to integrate seamlessly into emerging packet voice, data and video technologies."

About Bayland Telephone, Inc. (Bayland)

For almost a century, people in Northeast Wisconsin have relied on Bayland Telephone to provide them with the most reliable, state-of-the-art telephone communications. As a complete communications source providing local, long distance, wireless, internet and data services, Bayland's strategy is to aggressively provide the latest in innovative services, enhanced by superior knowledge, and service.

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, RAPTOR(TM) DSLAM, Zhone Residential Gateway (ZRG) and FiberJack(TM).

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.