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2014-04-16

Zhone Technologies, Inc: Saudi Arabian Alfarouq Residential Compound Installs Zhone Technologies FiberLAN for Advanced Broadband Services

Contacts

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|Aurora Arlet Zhone Investor Relations |
|Edelman for Zhone Public Relations Tel: +1 510.777.7013 |
|Tel: +1 404.460.8578 Fax: +1 510.777.7001 |
|E: aurora.arlet@edelman.com E: investor-relations@zhone.com |
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Saudi Arabian Alfarouq Residential Compound Installs Zhone Technologies
FiberLAN for Advanced Broadband Services

Zhone's Optical LAN increases broadband availability and service offerings for
residents

Oakland, CA
-April 16, 2014
-Zhone Technologies, Inc.(NASDAQ: ZHNE), a global leader in FTTx network
access solutions, today announced a newFiberLANdeployment with Aljabr Group
at its Alfarouq Residential Compound, located in Jubail Industrial City,
Saudi Arabia. The deployment was made possible through a strategic
partnership with Global Business Solutions (GBS) (http://www.gbs.com.sa/).
Through the deployment, the residential compound now provides IPTV services,
IP telephony, a CCTV camera system, high-speed Internet and a digital signage
system over its GPON network.

The Alfarouq Residential Compound - composed of 32 buildings - includes 24
units per building, a recreation center, a restaurant, a banquet hall and a
swimming pool. Zhone's GPON network, installed in 2013, connects all 32
buildings with a single data center and ensures they all have redundant
connectivity with a fiber cable.

"The FiberLAN deployment enabled more than 750 residents within the compound
to have high-performance, stable connectivity, meeting the broadband needs of
residents," said Shater S. Abdurahman, group I.T. general manager at Aljabr
Group. "Zhone's extensive portfolio of products and innovative solutions,
including its MXK platform high density FTTx OLT, enabled Alfarouq to provide
the advanced IP and broadband services its customers desired."

"Following implementation of Zhone's solution, the compound gained a full,
multi-service network with a significant decrease in costs due to a reduction
in LAN infrastructure cabling," said Eng Haris P. Mohammed, project manager
at Global Business Solutions. "FiberLAN was a great complement to the GPON
network already in place within the compound, improving service offerings and
customer satisfaction."

Zhone's FiberLAN is a high-performance, high density GPON-based Passive
Optical LAN solution that delivers high speed data, voice and video to
multi-level, multi-unit commercial and industrial complexes, including hotel
rooms, bandwidth demanding desktops and work-stations. Zhone's FiberLAN
conserves energy and reduces operating costs.

"Using Zhone's solutions, the Alfarouq Residential Compound is now able to
offer an expanded selection of service offerings for its residents," said
Brian Caskey, chief marketing officer at Zhone Technologies. "Zhone is
dedicated to providing unique solutions and quality services to its customers
across the globe."

Zhone continues to provide innovative access solutions, delivering voice,
video and data services over copper and fiber. For more information on
Zhone's FiberHome(TM) portfolio please visithttp://www.zhone.com.

About Global Business Solutions

Global Business Solutions (GBS)is one of the best Information Technology
Infrastructure Solutions providers in the Eastern region of Saudi Arabia,
located in Dammam. GBS specializes in analyzing, designing, implementing and
supporting IT infrastructure. GBS services includes GEPON Triple Play
solutions, switching and routing, unified communication, network security
solutions, Microsoft software infrastructure, server/storage and
virtualization, structured fiber&UTP cabling and data center solutions. GBS
has proven delivery expertise and consistently meets customer satisfaction in
a wide range of industries.

About Zhone Technologies

Zhone Technologies, Inc. (NASDAQ: ZHNE) is a global leader in all IP
multi-service access solutions, serving more than 750 of the world's most
innovative network operators. The IP Zhone is the only solution that enables
service providers to build the network of the future.today, supporting
end-to-end Voice, Data, Entertainment Social Media, Business, Mobile Backhaul
and Mobility service. Zhone is committed to building the fastest and highest
quality All IP Multi-Service solution for its customers. Zhone is
headquartered in California and its products are manufactured in the USA in a
facility that is emission, waste-water and CFC free.

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.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to the
safe harbors created under the Securities Act of 1933 and the Securities
Exchange Act of 1934. Words such as "anticipate," "believe," "continue,"
"could," "estimate," "expect," "goal," "intend," "may," "plan," "project,"
"seek," "should," "target," "will," "would," variations of such words, and
similar expressions are intended to identify forward-looking statements. In
addition, forward-looking statements include, among others, statements that
refer to financial estimates; projections of revenue, margins, expenses or
other financial items. 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, commercial acceptance of the Company's products; intense
competition in the communications equipment market; the Company's ability to
execute on its strategy and operating plans; and economic conditions specific
to the communications, networking, internet and related industries. In
addition, please refer to the risk factors contained in the Company's SEC
filings available at www.sec.gov, including without limitation, the Company's
annual report on Form 10-K for the year ended December 31, 2013. 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. The Company
undertakes no obligation to update or revise any forward-looking statements
for any reason.

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Zhone Technologies, Inc via Globenewswire

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