CESKE RADIOKOMUNIKACE, a.s Selects Zhone for Delivery of Voice and Data Services; Next-Generation Access Architecture Allows Scalable Cost-Effective Delivery of Triple-Play Services.

OAKLAND, Calif. -- Zhone Technologies, Inc. (NASDAQ:ZHNE), the first company dedicated to building total-delivery solutions for voice, data and video content services worldwide, announced today that CESKE RADIOKOMUNIKACE, a.s of the Czech Republic has selected Zhone's Multi-Access Line Concentrator (MALC(TM)) system for its new service deployments.

CESKE RADIOKOMUNIKACE, a.s (Czech Radio) is utilizing Zhone's Single Line Multi-Service (SLMS(TM)) product family to provide voice and data services over unbundled local loop. Zhone's Multi-Access Line Concentrator is allowing Czech Radio to quickly add new subscriber broadband services carrying voice and internet traffic. Network users include both residential and enterprise customers.

"We were looking for a unified technology to help us to reduce the cost and complexity of deploying and managing new services across our nationwide network," said Jaromir Charvat, Director of Telecommunications for Czech Radio. "The technical flexibility and operational efficiency enabled by Zhone's SLMS architecture supports our mission of providing reliable, high quality voice and data services to customers today, while building a solid and reliable network backbone for services in the future."

High-speed line-side interfaces supported on the MALC include G.SHDSL, ADSL, ADSL s= 1/2, ADSL2+, VDSL and PON. All of these broadband services -- in addition to support for the industry's broadest array of narrowband and specials -- are available across a scalable range of environmentally hardened platforms for deployment in cabinets, buildings or Central Offices. Voice and data traffic, as well as broadcast and multicast video streams, can be carried efficiently throughout the access network using the MALC's integrated Gigabit Ethernet transport with Resilient Packet Ring technology.

"Zhone's products uniquely allow carriers to deliver the diversity of services required to compete while reducing deployment and operations costs," said Mike Scheck, vice president of international and major account sales for Zhone. "Zhone's flagship Single-Line Multi-Service architecture was purpose-built to deliver new IP services and voice over a common converged architecture from the central office to the home. No other equipment vendor can make that claim."

As a key element of Zhone's comprehensive solution, network, subscribers and services are 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.

About CESKE RADIOKOMUNIKACE, a.s (Czech Radio)

CESKE RADIOKOMUNIKACE a.s. is a modern nation-wide telecommunication company. Activities in the Czech market concentrate first of all on the propagation and transmission of data and other types of signal through the air using microwave relay and satellite communication systems, telecommunication networks and via fiber optics. Moreover, CESKE RADIOKOMUNIKACE a.s provide nation-wide, regional and local propagation and distribution of TV signals for state and private broadcasters. For more information, please visit http://www.cra.cz

Czech Radio operates its proprietary optical backbone network, the present length of which exceeds 2,000 km and directly interconnecting 27 cities nationwide. The backbone network consists of an extensive network of microwave links creating unique access covering hundreds of towns and villages. The network is equipped with state-of-the-art technology supporting all available transmission protocols enabling the company to offer reliable services for all customers.

In the second half of 2002, CESKE RADIOKOMUNIKACE a.s. completed a strategic change of its telecommunications business by adding internet and voice service to its telecommunication services portfolio. Thus, Czech Radio has become a provider of the complete range of telecommunication services newly labeled Bluetone.

About Zhone Technologies, Inc. (Zhone)

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) ATM/IP DSLAMs, 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 300 carriers including among some of the world's largest networks, Zhone has enabled network operators to reinvent their businesses. For more information, please visit http://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. (C)Copyright 2005 Zhone Technologies, Inc. All rights reserved.

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