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Oakland, CA - September 7,
2005 [Press Release] — Zhone Technologies, Inc. (Nasdaq:
ZHNE), the first company dedicated to building total-delivery solutions for
voice, data and video content services worldwide, today announced that it has
reached several milestones for its
Broadband Loop Carrier
(BLC) equipment. This
includes the shipment of over 700,000 BLC ports of video-capable ADSL2+, and
over 275,000 ADSL2+ DSL modems. This milestone is a clear indicator of the
company's number one position as the leading provider of ADSL2+ triple play BLC
equipment.
"With it's combined product portfolio, Zhone shipped 62% of all BLC platform
DSL ports during the most recent quarter and was the only BLC vendor shipping
product into every geographic region," said Teresa Mastrangelo of
BroadbandTrends.com Research. "The BLC category is part of the fast growing
segment of DSL access platforms addressing the migration to Ethernet. DSL
access platforms will represent over $4 billion in capital expenditures per
year over the next several years. These platforms are increasingly critical in
carrier networks because they allow for cost-effective delivery of advanced new
triple-play services, including VoIP and IPTV over copper or fiber."
Another new market in which Zhone has been recognized for its rapid leadership
is in the fast growing
Ethernet over Copper market with it's
Network Extender
Ethernet Access Device (EAD) product line. Network Extenders deliver high speed
Ethernet connectivity over existing copper wires, including bonded SHDSL and
bonded T1/E1 solutions.
"Zhone is currently one of the top three vendors in the Ethernet over copper
sector of the Ethernet WAN market for Ethernet Access Devices (EADs), a market
we expect to show high growth over the coming years," said Michael Howard,
Principal Analyst, Infonetics Research. "We are including market size figures
for the new segment of EADs as part of our Metro Ethernet Equipment report in
September 2005, and we expect Zhone to be a significant portion of the bonded
copper market."
Zhone's combined access solutions are available in a range of chassis sizes and
port counts supporting from 2880 ports in a single cabinet to 24 ports in a
remote
1U DSLAM. Optional weather hardened outside plant enclosures and line
powered capabilities allow service to be delivered across a carrier's entire
serving area. Zhone has consistently maintained a place among the top broadband
equipment vendors with ADSL2+. Zhone's early success in the fast growing
Ethernet over copper market is now also being validated with its Network
Extender T1/E1 and SHDSL EADs.
"Zhone continues to meet key milestones in its targeted segments of the
broadband market," stated David Markowitz, vice president on marketing at Zhone
Technologies. "Achieving these milestones reinforces our expectations of
continued strength for the company because it represents early leadership in
some of the fastest growing segments of the telecommunications industry."
Zhone's MALC and Raptor products provide the highest density and lowest cost
per port of any BLC or DSL platforms on the market, and are the only family of
access products that offers software upgradeability to a fully functional voice
and data NGDLC, with in-service software-selectable TDM, ATM or IP uplinks.
Zhone's recently acquired
12000,
8800 and
4200 products extend the product
portfolio with the broadest range of BLCs and DSLAMs of any vendor.
Zhone's Network Extender products provide point-to-point Ethernet connectivity
over the WAN. Network Extenders transport Ethernet directly over SHDSL, T1 or
E1 -- making it easy to interconnect LANs over virtually any distance. For
higher bandwidth requirements, multiple circuits may be bonded together to form
higher-capacity Ethernet WAN connections.
About Zhone Technologies
Zhone designs and manufactures network equipment for network
operators worldwide. Zhone's products allow network operators to
deliver a rich array of voice, data, video, and entertainment
services over their existing networks while simultaneously retooling
for converged packet-based voice (VoIP) and video (IPTV) over copper
or 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) and GrandSLAM ATM/IP DSLAMs,
Ethernet in the First Mile bonded solutions, Zhone Residential
Gateways (ZRG(TM)), GigaMux(TM) Optical Transport Systems and Zhone
Management System (ZMS(TM)). With deployments at over 400 carriers
including among some of the world's largest networks, Zhone has
enabled network operators to reinvent their businesses. For more
information, please visit www.zhone.com.
Contacts:
Investors
Tel: +1 510-777-7013
Fax: +1 510-777-7001
Email: investor-relations@zhone.com
Media
Jessica Mullens
Tel : +1 510-777-7020
Fax : +1 510-777-7001
Email: jmullens@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 ©2005 Zhone Technologies, Inc. All rights reserved.
Forward-Looking Statements
This press release contains forward-looking statements that are
entitled to the protection of the safe harbors contained in Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements include, among
others, statements that refer to anticipated growth and trends in
our business or key markets, including growth in the Ethernet
market, improvements in the capital spending environment,
anticipated performance of products or services, and other
characterizations of future events or circumstances. Readers are
cautioned that actual results could differ materially from those
expressed in or contemplated by the forward-looking statements.
Factors that could cause actual results to differ include, but are
not limited to, the acceptance of new telecommunications services
based on DSL technology, the economic slowdown in the
telecommunications industry that has restricted the ability of our
customers to purchase our products, commercial acceptance of our
SLMS products, the development of new products and enhancements to
existing products, defects or other performance problems in our
products, and intense competition in the communications equipment
market. In addition, please refer to the risk factors contained in
Zhone's SEC filings available at www.sec.gov, including without
limitation, Zhone's annual report on Form 10-K for the year ended
December 31, 2004 and Zhone's quarterly reports on Form 10-Q for the
quarters ended March 31, 2005 and June 30, 2005. Readers are
cautioned not to place undue reliance on any forward-looking
statements, which speak only as of the date on which they are made.
Zhone undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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