Zhone Announces New Universal Edge 9000 Remote Configuration; New Remote Configuration Offers Cost Effective Support for Low Line Count Applications.

Business Editors/Technology Writers

OAKLAND, Calif.--(BUSINESS WIRE)--Jan. 30, 2002

Zhone Technologies, Inc., the first company dedicated to the full integration of the local loop today announced a remote configuration enhancement to the company's AccessNode(TM) Universal Edge 9000 (UE 9000) Broadband Digital Loop Carrier (BBDLC) platform. As one of the most widely deployed DLC platforms in the world, the Universal Edge 9000, provides high-density, fully integrated voice and data functionality to both narrowband and broadband data services to be deployed from a single platform with maximum densities.

The enhanced Universal Edge 9000 Remote(TM) (UER) provides the ability to more cost effectively service sites requiring from 100 to 720 lines, by allowing the UE 9000 shelf to be located in a physically different location from the system control -- Access Bandwidth Manager (ABM) -- shelf. The ABM can be deployed in a centralized location and can support up to 7 individual UER equipped sites. All of the benefits of the UE 9000 are now available in a smaller physical package at the remote site with more efficient utilization of the ABM concentration shelf. The ABM concentration shelf delivers time tested carrier grade GR-303 and TR-008 interfaces to a variety of Local Digital Switch (LDS) platforms.

"We are pleased to now offer our customers a rock solid BBDLC solution for sites with lower line density requirements," said David Misunas, vice president and general manager for the Access Systems Division of Zhone. "The UE 9000 is one of the most widely deployed BBDLC platforms in the world; therefore we intend to continue development on this platform, offering our carrier customers the best, most robust and most flexible access technology on the market today."

In addition to this new remote configuration, Zhone is also now offering a new, full featured DS1 IMA ATM network interface card in addition to the existing DS3 ATM network interface card, and a new ADSL 24 line card. This new ADSL 24 line card provides 24 ADSL circuits, full rate and/or G.lite, with splitters on board for cross-connecting to any UE 9000 POTS circuit on the same system, delivering up to 384 ADSL circuits on one UE 9000 shelf. The Universal Edge 9000 Remote is currently in trials by several independent carriers.

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, video, Internet, 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 September 1999. Zhone's advanced networking solutions include the Single Line Multi-Service architecture (SLMS(TM)), Zhone Management System (ZMS(TM)), Broadband Access Node (BAN(TM)), AccessNode(TM) and Universal Edge(TM) 9000 products (purchased from Nortel Networks -- NYSE/TSE: NT -- Nortel Networks is a trademark of Nortel Networks), Sechtor(TM) universal voice gateway, and the Z-Edge(TM) access products.

For more information about Zhone and its products, please visit the Zhone Web site at www.Zhone.com or e-mail [e-mail].

Editors note: Zhone will be hosting an AccessNode UE 9000 Users Forum at La Quinta Resort located in Palm Springs.

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.