Etisalat Successfully Deploys Zhone's MALC and Raptor Products to Expand Its ADSL Internet Services.

OAKLAND, Calif. -- Zhone's Single-Line Multi-Service Architecture Allows Major Carrier to Cap Investment in Legacy While Migrating to Packet

Zhone Technologies, Inc. (NASDAQ:ZHNE), the first company dedicated to building total-delivery solutions for voice, data and content services worldwide, announced today that Emirates Telecommunications Corporation (Etisalat) has selected Zhone's innovative Single Line Multi-Service (SLMS) architecture to cost effectively expand its network. Etisalat has selected Zhone Raptor 100 for outdoor cabinet expansion with ADSL services reaching out to a new slice of customers in remote areas. This expansion supports the company's comprehensive multi-service DSL end-to-end solution across the United Arab Emirates.

In addition, Etisalat is utilizing Zhone's Access Optimizer technology with E1 Circuit Emulation line cards. This allows Etisalat to uplink both narrowband and broadband traffic from the Raptor 100 DSLAMs as well as from their existing DLC, NGDLC and DSLAM equipment onto a common Zhone network.

By subtending chassis, the Access Optimizer allows Etisalat to place equipment closer to the subscriber to address both bandwidth and reach. This subtending capability also allows for more cost-effective network builds by deploying just the right port count that a market requires. In combination with the broadest range of port densities, chassis sizes and both locally-powered and line-powered configurations, Raptor allows Etisalat to deploy the most cost-effective multi-service infrastructure networks available.

The Access Optimizer is being used not only for subtending Zhone chassis, but also for subtending traffic from other vendor's legacy NGDLCs and DSLAMs. By utilizing Access Optimizer technology, Etisalat is able to "cap-and-grow" their investment in legacy platforms without service disruption. New service ports can be deployed in the MALC rather than in the legacy platform, providing for more cost effective port deployments and for more services than are available on the legacy devices.

As the industry's first next-generation, high-density multi-access line concentrator, the MALC has been specifically designed to support both traditional narrowband voice and broadband data services in a single platform, delivering any service to any subscriber over a single common infrastructure. Zhone's Raptor extends the architecture by providing the broadest array of DSL densities and form factors on the market. The combination allows carriers to deploy using today's leading TDM circuit technology while simultaneously preparing for cell or IP packet migration without incremental hardware.

The MALC product family offers flexibility with a broad range of configuration options while maintaining common management, integrated cross-connect, integrated loop qualification with internal splitters, and flow-through provisioning capabilities to clearly differentiate the platform from traditional NGDLC platforms.

About Etisalat

Emirates Telecommunications Corporation (Etisalat) came into being on 30th August 1976. The Corporation provides telecommunication services to the United Arab Emirates and is one of the leading service providers in the Middle East Region. Etisalat also provides digital cable television and multimedia services to the residents of the United Arab Emirates under E-vision, a wholly owned subsidiary of Etisalat. E-vision provides the ultimate choice in Digital Entertainment, Programming, Interactive Audio/Video and Pay Per View Services.

Further information is available at http://www.etisalat.co.ae.

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, 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.

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.

For more information, please visit www.zhone.com.