Zhone Teams With Technology Partners to Demonstrate Enhanced IP Triple Play Services at TelcoTV 2006.

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, will demonstrate the latest advances in IPTV and VoIP services in booth 713 at TelcoTV in Dallas, November 6-8. Zhone's comprehensive product portfolio will also be on display.

The demonstration will feature working IPTV services from a live headend and show the MALC's interoperability with IPTV systems and devices. Zhone will also utilize a range of modem and ONT devices it manufactures to connect IPTV services to a variety of IP set top boxes.

Zhone's technology partners Tut Systems, Kasenna, Amino, SecureMedia, Foundry Networks and MetaSwitch will also participate.

The demonstration will highlight HDTV over MPEG-4 AVC compression from a Tut Astria[R] headend content processor to an Amino 130 MPEG-2/MPEG-4 standard and high definition IP set top box. Kasenna will supply the VOD server for content as well as the middleware used for the working demo. SecureMedia will provide its conditional access encryption for digital content. Foundry's Ethernet switch will be used for the hub and aggregation of IP services, and MetaSwitch will be used for a live VoIP demonstration over the Internet.

Other TelcoTV activities include a Zhone sponsored breakfast and panel presentation Tuesday morning featuring guest speaker Will Flannery, VP, Advanced Services Group, Fox Cable Networks. Tuesday afternoon from 4:30-5:30, Zhone will also participate in a TelcoTV panel discussion focusing on IPTV services and emerging opportunities for operators.

"Zhone appreciates our technology partners' contributions and support at TelcoTV," commented Steve Klein, Zhone's Director of Video Solutions. "We share common customers and a common vision, along with a strong commitment to deliver solutions that enable carriers to successfully deploy IPTV and Triple Play services. Our enhanced IPTV and VoIP demonstration will highlight the level of cooperation Zhone has established with its partners to deliver integrated and proven service solutions."

The IP Triple Play demonstration will feature Zhone's Multi-Access Line Concentrator (MALC), the most complete access platform optimized for delivery of IPTV and Triple Play services over both copper and fiber on the market today. The demonstration will showcase the MALC's ability to deliver IPTV over ADSL2+, VDSL2 and Active Ethernet from a single MALC chassis. In addition, the MALC will act as a distributed multicast router for IGMP.

"This demonstration of multi-vendor IPTV and VoIP services will illustrate how the MALC is capable of delivering commercially deployable and revenue producing IPTV and VoIP services from a single access platform," adds Klein.

About Zhone Technologies

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.

About Tut Systems, Inc.

Tut Systems, Inc. delivers advanced content processing and distribution products as well as comprehensive system integration services for deploying next-generation data and video services over broadband networks. Service providers, content providers and government agencies worldwide use Tut Systems solutions to deliver broadcast-quality video over broadband networks. Tut Systems is headquartered in Lake Oswego, OR. For more information visit www.tutsys.com.

About Kasenna

Kasenna - The IPTV Company[TM] - is a leading provider of video-on-demand (VOD) content and MPEG-4 ready IPTV applications for triple play services over broadband networks. Kasenna PortalTV is a fully-integrated IPTV solution that enables telecom service providers, cable operators and others to generate additional revenue, increase profits and raise customer satisfaction by delivering advanced television services.

Proven through dozens of global deployments, Kasenna's patented software technology is built on open standards, allowing providers to easily customize services and the viewer experience. Through its subsidiary ViewNow, Kasenna offers the industry's only turnkey IPTV solution that includes scalable IP video infrastructure, subscriber applications, and VOD programming. Kasenna is a privately-held company with headquarters in Sunnyvale, California, and office locations worldwide. For more information, please visit www.kasenna.com.

About Amino Communications

Amino Communications (www.aminocom.com) supplies the AmiNET[TM] series of set-top boxes renowned for their low-cost and reliability. The AmiNET range materially reduces service operators' capital expenditure, whilst offering the full range of specification required; MPEG2 and MPEG4 encoding standards, standard and high definition TV, personal video recording and home networking. The high performance coupled with the innovative design of Amino's set-top boxes have brought the series industry accolades and the company a leading position within the IPTV market.

Approximately 700,000 AmiNET IPTV set-top boxes have been used in over 50 countries worldwide by more than 500 customers in commercial deployments and trials. The set-top boxes have also been sampled by another additional 700 customers. Amino Communications' principal customers are telecommunications, broadcast and hospitality service operators. Generally, AmiNET products are supplied with the IntAct[TM] IPTV software stack pre-loaded.

Amino Communications is a wholly owned subsidiary of Amino Technologies plc. Listed on the London Stock Exchange AIM, symbol AMO. Amino is based near Cambridge, UK, and has offices in Atlanta (Georgia) and Hong Kong.

About SecureMedia

SecureMedia Inc. is the leading provider of proven open platform content protection software for the delivery of video-on-demand, IPTV, multimedia and other digital content over broadband IP networks. The Company enables "Entertainment Everywhere![TM] " by providing a range of content security solutions from the comprehensive Encryptonite ONE[TM] System CA/DRM software suite to software toolkits, hardware cores and plug-ins for third party media delivery systems. SecureMedia's customers represent industry leaders and include Cavalier Telephone, Reeltime Infotainment, TV Sierre, Sony, China Data Broadcasting, Eona and others.

About MetaSwitch

MetaSwitch is an industry-leading vendor of IP Multimedia Subsystem (IMS) switching and applications solutions for both packet and circuit-switched networks. Its widely deployed call agent, media/signaling gateway and application server platform supports a full range of legacy Class 4/5 capabilities and hosted unified communications services, and scales from a few hundred to millions of subscribers in both integrated and distributed configurations. Customers include incumbent and competitive local exchange carriers, as well as operators of broadband wireless, cable and fiber networks. MetaSwitch is a division of established telecom technology provider Data Connection. The company is consistently profitable and privately held, with main US offices in California and Virginia, and European headquarters in London, UK. For more information: www.metaswitch.com.

About Foundry Networks

Foundry Networks, Inc. (Nasdaq:FDRY) is a leading provider of high-performance enterprise and service provider switching, routing, security, and Web traffic management solutions including Layer 2/3 LAN switches, Layer 3 Backbone switches, Layer 4 - 7 application switches, wireless LAN and access points, access routers and metro routers. Foundry's 10,000 customers include the world's premier ISPs, metro service providers, and enterprises including e-commerce sites, universities, entertainment, health and wellness, government, financial, and manufacturing companies. For more information about the company and its products, call 1.888.TURBOLAN or visit www.foundrynetworks.com.