Broadband Gateways and Zhone Technologies Partner, Work Toward Open-Standards Based Interoperability.

Business/High-Tech Editors

PLANO, Texas--(BUSINESS WIRE)--May 30, 2001

Product Integration Allows Carriers to Deliver Voice and Data over

Broadband via Packet Network, Leveraging Existing Infrastructure

Broadband Gateways, Inc. announced a partnership this week with Zhone Technologies, Inc. that will work toward interoperability between Broadband Gateway's EVOLO(TM) Intelligent Premises Gateway and Zhone Technologies' Sechtor 100A Voice Gateway.

Open-standards based interoperability between these products will enable providers to immediately deploy advanced voice and data services over broadband packet networks, while minimizing deployment and management costs.

Interoperability between the two systems is based on the ATM Forum's standard Loop Emulation Service (LES) using Channel Associated Signaling (CAS). The LES-CAS standard is widely accepted across the industry as a leading standards-based VoDSL implementation model.

"The partnership with Zhone Technologies is the next step in strengthening the service providers' ability to evolve with the rapid changes in communications technology," said Bill Rogers, vice president of business development at Broadband Gateways. "Just like the design philosophy of our EVOLO system, Zhone created a single, integrated platform that would allow carriers to grow with the network while leveraging its existing infrastructure to deliver voice-over-packet services."

Broadband Gateways' EVOLO system is a modular, intelligent edge device that allows carriers to deliver integrated voice, data, VPN and multimedia services over a single broadband connection, then distribute these services via wireless or wireline throughout the premises. Zhone's Sechtor 100A Voice Gateway provides a reliable, scalable, cost-effective and efficient solution that delivers multiple broadband services and features to subscribers over packet-based broadband local loops.

"As the demand for advanced broadband services increases, carriers need the cost-effective, flexible solution that EVOLO offers. Multi-service gateways like these will take carriers into the next-generation network and meet that network's requirements," said David Markowitz, vice president of marketing for Zhone Technologies. "Interoperability between our companies' products will allow that evolution to occur, while strengthening our commitment to help carriers deploy broadband to the mass market."

Broadband Gateways and Zhone Technologies will display their products at Supercomm: Zhone Technologies, booth 6347 and Broadband Gateways booth 3528.

Broadband Gateways, Inc.

Broadband Gateways Inc. designs an intelligent broadband access device for the broadband voice and data market. The company's innovative EVOLO(TM) Intelligent Premises Gateway (IPG) for residential and small business applications is the world's first intelligent platform, driving the convergence of voice and data, wireless and wireline. This new system takes broadband beyond high-speed Internet access, distributing wireless voice, data, and multimedia services within the premises more simply and cost-effectively, thereby opening up the mass market for service providers. Broadband Gateways is a private company headquartered in Plano, Texas. For more information on Broadband Gateways and the EVOLO Intelligent Premises Gateway, visit the company's Website at www.broadbandgateways.com.

Zhone Technologies, Inc.

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, video, Internet, 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 September 1999. Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Zhone Management System (ZMS(TM)), Broadband Access Node (BAN(TM)), Sechtor(TM) universal voice gateway, and Z-Edge(TM) access products.