Zhone Technologies Industry Recognized Local Loop Management System Completes OSMINE Certifications.

Business/Technology Editors

OAKLAND, Calif.--(BUSINESS WIRE)--Jan. 15, 2002

NCON and LFACS Certifications Confirms that ZMS(TM) is Fully

compatible with Telcordia OSS Systems

Zhone Technologies, Inc., the first company dedicated to the full integration of the local loop, today announced that the Zhone Management System (ZMS) has completed the Telcordia(TM) OSMINE Services process for Telcordia(TM) Network Configuration Manager (NCON) and Telcordia(TM) Loop Facilities Assignment and Control System (LFACS) support.

Eighty percent of the U.S. telecommunications networks depend on operations support systems (OSS) software developed and maintained by Telcordia. These systems are used by the major local exchange carriers to manage their networks. The Telcordia OSMINE Services process helps enable network equipment compatibility and interoperability with Telcordia OSSs. This helps to ensure operations systems automation, a requirement to provide Operations, Administration, Maintenance and Provisioning (OAM&P) of services in a timely fashion and on a volume basis.

As a key component for Zhone's Single-Line, Multi-Service (SLMS(TM)) network architecture, the ZMS software management system offers carriers, simplified network management and auto-provisioning of premium broadband services, that includes voice, data, video and content services -- fast, efficiently and with significantly reduced operational costs associated with service deployment.

"We realized early on that the OSMINE services process was of great importance to our carrier customers," said Allan Jennings, vice president and general manager of the Management Systems Division at Zhone. "The completion of the OSMINE services process for Network Configuration Manager and LFACS will minimize the impact of OSS integration into incumbent networks for the Zhone Management System."

Telcordia Network Configuration Manager and LFACS

The Telcordia Network Configuration Manager is a software application that enables automated management of network, circuit, service and facility configurations, greatly simplifying the complex job of assigning network circuits and managing network inventory. With the Telcordia Network Configuration Manager, planners and engineers can view and manage the status of equipment and facilities related to next generation networks and services, time division multiplexing (TDM) networks, SONET/SDH networks, special service circuits, message trunks and carrier systems.

Telcordia LFACS maintains a mechanized inventory of outside plant facilities (e.g., facility addresses, cables, cable pairs, serving terminals, cross connection devices, loops, etc.), and assigns the outside plant facilities to AR's (Assignment Requests) received from the Telcordia(TM) Service Order Analysis and Control (SOAC) system as a result of customer service order activity. LFACS also generates work sheets for cable transfers and re-concentrations.

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 DLC products (acquired 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].

Note to Editors: 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.