VALOR Telecom Selects Zhone Technologies' Raptor ATM/IP DSLAM; Next-Generation Access Architecture Allows Cost-Effective Delivery of Broadband Services from Remote Terminals.

OAKLAND, Calif. -- Zhone Technologies, Inc. (Nasdaq:ZHNE), the first company dedicated to building total-delivery solutions for voice, data and content services worldwide, announced today that VALOR Telecom has selected Zhone's Raptor(TM) DSLAM to serve its business and residential customers across Texas, Oklahoma, New Mexico and Arkansas with leading edge communication technologies and services.

As part of Zhone's multi-service architecture, the Raptor family reduces carrier's fixed and operational costs of service delivery over the existing local loop infrastructure while enabling incremental revenue through new services. With support for up to 384 ADSL ports in a 3U chassis, Zhone's Raptor offers the highest density of any DSL platform on the market. This is important in cabinet deployments where full coverage must be made available in a limited space. In addition, Raptor's full range of deployment options provides support for ADSL2+ as well as PON and narrowband services including POTS and legacy specials.

"With customers spread across four states, we're looking for a unified technology to reduce the cost and complexity of deploying and managing new services across our vast network," said Bill Bellando, vice president of Planning, Engineering and Data Services, VALOR Telecom. "The technical flexibility and operational efficiency enabled by Zhone's Raptor DSLAM supports VALOR's mission of providing the highest quality communication services to customers today, while building a solid and reliable network backbone for services yet to come."

"The Raptor family of DSLAMs provides everything a large communications company needs to deploy and manage digital video, high bandwidth Internet access and cell relay services from a single remote platform," said Steve Rogers, general manager, Zhone Technologies. "Zhone's Raptor makes the delivery of DSL services attractive and simple, regardless of line count."

VALOR Telecom is leveraging the Raptor's versatile platform, with units deployed in both central offices (COs) and in Remote Terminals (RTs). The Raptor Next-Generation DSLAM provides the highest density and lowest cost per port of any DSL platform on the market, and is the only family of DSLAMs that offers software upgradeability to a fully functional voice and data NGDLC, and provides in-service software-selectable ATM or IP uplinks.

About VALOR Telecom

VALOR Telecom, a subsidiary of VALOR Communications Group, Inc. (NYSE:VCG), is an Incumbent Local Exchange Carrier and one of the largest providers of telecommunications services in primarily rural communities in Texas, Oklahoma, New Mexico and Arkansas. In addition to local telephone service, we offer our business and residential customers a wide range of telecommunications services, including unlimited nationwide long distance, bundled calling plans, directory and online yellow pages, high-speed DSL, Internet access service, telephone equipment, data solutions, calling features and more. Formed in 2000, VALOR is based in Irving, Texas. For more information, please visit www.valortelecom.com.

About Zhone Technologies, Inc. (Zhone)

Zhone (Nasdaq:ZHNE) designs and manufactures network equipment for telephone companies and cable 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), Raptor(TM) ATM/IP DSLAMs, Zhone Residential Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone Management System (ZMS(TM)). With deployments at over 300 service providers 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. Copyright 2005 Zhone Technologies, Inc. All rights reserved.