Zhone Achieves Compatibility With Nortel Softswitch for Global VoIP Deployments.

Industry's Leading Broadband Loop Carrier Awarded Certificate of Compatibility Following Completion of Compatibility Testing 

OAKLAND, Calif. -- Zhone Technologies, Inc. (NASDAQ:ZHNE), a global provider of advanced communications equipment and a leader in VoIP, IPTV, and Ethernet over both copper and fiber access lines, announced today that Nortel1 has completed compatibility testing of Zhone's MALC Access Concentrator / SLMS with Nortel's Communication Server 2000 softswitch. As a result of the successful testing, Zhone's MALC product is designated a Nortel Compatible Product and was awarded a Nortel Certificate of Compatibility.

As a broadband loop carrier, Zhone's MALC combines advanced data and video services with integrated VoIP access gateway functionality, converting voice traffic on business and residential POTS interfaces to SIP, MGCP and H.248 VoIP protocols. The interoperable solution of the Zhone MALC and the Nortel Communication Server 2000 softswitch can help service providers deploy complete carrier-class voice networks supporting both legacy and IP-based services from a single voice architecture.

The Certificate of Compatibility for the MALC (Rel. 1.13) with Nortel's Communication Server 2000 (SN09/ISN09) is available from Nortel's Developer Program at: http://www.nortel.com/prd/dpp/product/prodpages/certs/cert1919.html.

"Nortel's compatibility test process and Global Services offerings demonstrate to carriers the integrity of the joint solution," said Barbara Tien, Zhone's director of engineering services. "The compatibility test process afforded us a unique opportunity that has resulted in new capabilities optimized for the Communication Server 2000."

About Zhone Technologies, Inc.

Zhone Technologies, Inc. (NASDAQ:ZHNE) is a global provider of advanced communications equipment to more than 600 operators in both emerging and established markets. Zhone's market-leading Broadband Loop Carrier equipment enables operators to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to a cost-efficient, all-IP access network. The company's products address a broad range of applications including residential and business broadband, VoIP, IPTV, and Ethernet over both copper and 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]). For more information, please visit 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 [c] 2006 Zhone Technologies, Inc. All rights reserved.

1Nortel is a trademark of Nortel Networks.