Zhone Technologies Announces FiberSLAM(TM) - A New Generation of Multiplexer to Drive High-Speed Optics Into the Access Network.

Industry's First Hybrid C/DWDM Multiplexer Combines Multi-GbE and TDM into Single Channel Wavelengths to Feed Mobile Backhaul, FTTx and Enterprise Services

OAKLAND, Calif. -- Zhone Technologies, Inc. (NASDAQ:ZHNE), a global provider of advanced communications equipment and a leader in VoIP, IPTV, and Ethernet services over copper or fiber access lines, today announced FiberSLAM[TM] the industry's first hybrid access system to integrate Coarse/Dense Wave Division Multiplexing (C/DWDM) Gigabit-Ethernet (GbE) and Time Division Multiplexing (TDM) into a single carrier grade, 1RU environmentally hardened platform. Uniquely suited for carrier Remote Terminal (RT) and cell tower installations, FiberSLAM brings ultra high-speed optics closer to the subscriber premise. Fiber optimization of the access network enables carriers to meet immense capacity demands for mobile and enterprise services while driving down costs of delivering Quality of Service (QoS) sensitive media and other FTTx services.

Designed specifically for today's hybrid network infrastructures, FiberSLAM is based on Zhone's Single Line Multi-Service (SLMS) architecture, ensuring service providers a practical and seamless migration from TDM (E1/T1 and DS3) to all-Ethernet (GbE) networks. Since WDM supports dedicated channel delivery, it serves as an ideal convergence medium, ensuring security, QoS and scaleable bandwidth capacity on an invest-as-you-grow basis.

"With a 1RU form factor, Zhone is one of the first companies to support WDM provisioning from the RT," said Jason Marcheck, principal analyst - optical infrastructure at Current Analysis. "As triple play services continue to evolve to require more bandwidth to the subscriber premise, the ability to carry a mix of traffic over WDM channels will become increasingly important in the access network. Given Zhone's strength as a broadband access company, the FiberSLAM platform is well positioned as an extension of the company's core competencies."

WDM: The New Model for Access Convergence

Delivery of Ethernet mobile services, fiber-fed mobile stations and increasing demand for quality sensitive entertainment media are putting tremendous strains on access capacity. Provisioning HDTV alone requires five times the bandwidth of standard broadcast service. Data subscriber rates need to increase exponentially to support mass provisioning of premium Fiber to the Home (FTTH) services. The search for ways to bring core capacity closer to the subscriber premise is active and ongoing. This involves a migration away from fixed-rate TDM service in favor of the flexibility and operational efficiency of Ethernet transport. However worldwide, the existing installed base of SONET/SDH is even with Ethernet. Operators are constrained by massive investments in SONET/SDH and the TDM legacy.

FiberSLAM provides operators a smooth migration path from TDM to Ethernet while introducing unmatched capacity, scalability and agility into the access network. By bringing wavelength services closer to the subscriber premise, operators can guarantee capacity on-demand for high-intensity Fx media, campus enterprise environments and mobile backhaul services. With FiberSLAM, network operators realize greater operational efficiencies, delivering targeted multi-GbE wavelength services only to nodes requiring increased bandwidth.

"FiberSLAM came pre-programmed so installation was complete in minutes," said Tommy Smith, executive network administrator for Central Texas Telephone who first selected FiberSLAM for mobile backhaul services. Central Texas later rolled out installations from RTs between subsidiary Central Offices. "FiberSLAM provides network efficiencies across-the-board," Mr. Smith said. "The single rack unit saves us power and space while ensuring scalability for future services."

"Zhone's express focus is global access and helping service providers practically deliver premium media services over today's hybrid networks," said Chris Garcia, head of optical networking gear for Zhone. "We designed FiberSLAM with clear knowledge that the access network needs a major influx of high quality bandwidth in order to realize the true potential of packet media. Fiber is still unmatched for QoS and WDM is the ideal convergence medium to guarantee capacity for FTTx, mobile Ethernet and the next generation of media services."

FiberSLAM: Lighting the Global Access Network

FiberSLAM provides the industry's only Multi-Gigabit Ethernet/TDM hybrid platform designed specifically for the access network. Multiple wavelength support provides expansion only when required, lowering the cost of entry while maintaining flexibility.

* FiberSLAM 101 and 105 provide a single channel or five dedicated channels of wavelength services.

* 1RU form factor: Environmentally hardened for carrier class RT installations.

* Superior Network Agility: Flexible filter options allow the same chassis to be deployed in point to point, protected, and 1310 sideband applications through the addition of the field upgradeable module.

* Targeted bandwidth for high capacity services: Supports 2 x GbE and 2 x 10/100 ports for high speed Ethernet data expansion with alien wavelength support for up to 40 GbE.

* TDM Interface support for 16 T1/E1 and 3 DS3/E3 channels

* SFP architecture: Built to support short reach, long reach, bi-directional single fiber, CWDM and DWDM SFP modules to meet whatever deployment requirements arise.

* ZMS: Zhone's full-featured management system includes a complete FCAPS implementation, with fault, configuration, administration, performance and security for intelligent traffic monitoring of QoS sensitive services.

"From a multi-service engineering perspective, FiberSLAM enables the roll-out of an enriched array of high-bit rate media," said Eric Presworsky, vice president of engineering for Zhone technologies. "Increased bandwidth capacity in the access network is naturally followed by innovation and a new generation of services."

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]). www.zhone.com