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Zhone Announces 4G Fibre Channel Support for Storage Area Networking Applications

Oakland, Calif., November 7, 2006 -- 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,  announced today the introduction of the GMFC4 line card to its existing GigaMux 6400 optical transport product line. With support for all leading data and SAN protocols, the GMFC4 brings flexible and expandable data service transport at an industry-leading price.

Optimized for Storage Area Networks (SAN) and Ethernet datacenters, the GMFC4 provides four client and four line-facing interfaces for connectivity to switches, servers, and WDM equipment. As service providers look at combining SAN and Ethernet services and focus on the ability to upgrade within a single system, the GMFC4 provides the flexibility for deployment today and expansion tomorrow. With support for Gigabit Ethernet, 1G, 2G, and 4G Fibre Channel on any interface, the GMFC4 allows providers to deploy a single solution that supports all common data interfaces. Simple software configuration allows complete control over each individual port allowing for mixes of any data protocol between the ports. Providers can deploy 1G or 2G Fibre Channel today and can upgrade to 4G without any new hardware.

All client and DWDM line-side interfaces are SFP based, supporting 850 nm, 1310 nm, and standard 100 Ghz-spaced ITU DWDM channel spacing. By natively carrying 4G clients over 4G wavelengths, the GMFC4 provides a significant cost-savings over multiplexed solutions based on 10G line-side optics. In addition, the GMFC4 can be used in any standard GigaMux 6400 shelf providing immediate expansion of existing networks as well as additional support for data and TDM applications as required by the customer.

"Customers have deployed the GMFC4 line card both as an expansion to an existing system and as a new deployment, enabling high-density SAN aggregation trunks between datacenters," said Chris Garcia, Senior Product Manager for Zhone’s WDM Optical Transport group. "Using pluggable optics not only lowers their solution cost but significantly lowers sparing and other ongoing operational costs. With thousands of nodes deployed worldwide, the GigaMux is a proven transport platform. The GMFC4 continues the GigaMux tradition of focus on the SAN market and its optical transport requirements."

The GigaMux 6400 provides a high density DWDM optical transport platform for MSO, Telecom, and Data/SAN providers worldwide. Integrated filters, amplifiers, and line cards enable complete platform integration within a single shelf. Native support for SONET/SDH services, Ethernet, and Fibre Channel at speeds up to 10 Gbps allows service providers to deploy services as needed and enabling new services as they are developed and deployed with a proven pay-as-you-grow architecture.

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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™), Multi-Access Line Concentrator (MALC™), Raptor™ ATM/IP DSLAMs, Zhone Residential Gateways (ZRG™), GigaMux™ Optical Transport Systems and Zhone Management System (ZMS™). For more information, please visit www.zhone.com.

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