Consolidated Communications Selects Zhone's SLMS Architecture With Support for Emergency Stand Alone Service.

Business Editors/High-Tech Writers

OAKLAND, Calif.--(BUSINESS WIRE)--Oct. 21, 2003

Next-Generation Access Architecture Offers Cost-Effective Narrowband

and Broadband Service Delivery With Unique DLC-Based Resiliency

Zhone Technologies, Inc., the first company dedicated to developing the full spectrum of next-generation local loop infrastructure solutions, today announced that Consolidated Communications Inc., (Consolidated), the largest independent telephone operator based in Illinois, has selected Zhone's Single Line Multi-Service architecture products for delivery of both narrowband and broadband services.

Among the products being deployed by Consolidated are Zhone's AccessNode Next-Generation Digital Loop Carrier, Zhone's MALC Packet Loop Carrier and Zhone's Raptor ATM/IP DSLAM. In addition to delivering the broadest range of narrowband and broadband services on the market, Zhone's SLMS architecture also provides common management for copper and fiber, and best in class densities.

Zhone's DLC portfolio provides support for ESA (Emergency Stand Alone) services across the product family. The addition of support for ESA allows the Zhone product family to provide intra-switching when links to the Class 5 switch are down.

"Emergency Stand Alone (ESA) capability provides a number of significant advantages for carriers and their subscribers particularly among rural and independent carriers," said Marty Hahnfeld, Vice President of North American Sales for Zhone. "Zhone has allowed this functionality to be delivered cost-effectively on existing Digital Loop Carriers thereby extending ESA capabilities further to the edge of the network."

"By providing Emergency Stand Alone support in its DLC products, Zhone has provided CCI with an end office replacement solution that is compact, reliable and relatively inexpensive," said Tom White, Director of Network Engineering for Consolidated Communications in Mattoon, Illinois. "This capability allows CCI to meet regulatory requirements while eliminating costly recurring investment in remote switches."

By moving basic carrier class levels of redundancy and manageability out to remote sites, carriers are able to increase their NECA settlement revenues substantially. Increased revenues of 15% per annum can be realized while simultaneously affording improved reliability for subscribers. Carriers seeing revenue gains from ESA settlements are able to apply these incremental sources of revenue to deploy additional high-bandwidth services such as high-speed Internet access and video.

About Consolidated Communications, Inc. (Consolidated)

With more than a century of telecommunications experience, Consolidated Communications, Inc. is a family of companies offering voice and data communications services to both businesses and residential customers, including local and long distance, Internet, paging, retail and wholesale operator services, public services and fully integrated marketing support services.

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)), 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 and RAPTOR(TM) ATM/IP DSLAM.

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.