16/01/2013 14:02:33

North State Turns to Zhone ONT for Rapid IPTV Deployment

Contacts

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

North State Turns to Zhone ONT for Rapid IPTV Deployment

Large independent telecommunications and home entertainment company in North Carolina leverages Zhone products to support Plex Advanced TV offering

Oakland, CA - Jan. 16, 2013 - 

Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in FTTx network access solutions, today announced that its industry-leading ONT was deployed by North State, a leading broadband and entertainment provider based in High Point, North Carolina, to deliver IPTV and video services via fiber-to-the-home (FTTH).  As one of the largest independent communications and home entertainment providers in North Carolina, North State maintains a robust network comprising more than 68,000 miles of high-capacity fiber delivering voice, video, broadband Internet for residential services and networking, IP services, and critical back-up and disaster recovery solutions for businesses.

In July 2012, North State enhanced their Plex Advanced TV offering, providing customers the highest quality interactive TV services available.  Supported by Zhone's cutting edge ONTs with integrated Residential Gateway functionality, North State has since then moved more than 5,000 live customers to the new platform. With Zhone as the access platform, the ONT acts as a smart device providing full gateway functionality, thus eliminating the requirement for a second device inside the home to control routing functionality needed to deliver enhanced features.

"Zhone has proven to be a valuable partner in our growth strategy over the last 12 years, providing the technology solutions and support needed to design flexible access networks for the latest service offerings," said Royster Tucker III, chief operating officer of North State. "Zhone's support of our video platform and the ability of the MXK system to rapidly and effectively support our unique network traffic needs will help improve our ability to deliver IPTV services effectively to our customers. With the migration flexibility of the existing MALC installed base, we were able to ensure that the new network build, utilizing the MXK system, would be completed cost-effectively."

Zhone's consistent leadership and solution efficiencies have not only enabled North State Communications to expand the reach of its services, but rapidly upgrade all of its offerings when needed to maintain a competitive edge.  Innovative IPTV services, such as Plex Advanced TV, enable North State Communications to deliver a consistent premium entertainment experience across multiple screens and networks.

"The rapid deployment of Plex Advanced TV, using Zhone's MXK is a testament to the unique flexibility we have in supporting a variety of Gigabit Passive Optical Network (GPON) and Active Ethernet (AE) service models," said Brian Caskey, chief marketing officer at Zhone. "Specifically, Zhone's MXK platform, in combination with other solutions from the Zhone FiberHome(TM) portfolio, provides the cost efficiency needed to deliver advanced triple-play services in a highly competitive price range."

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, 2011 and the Company's quarterly report on Form 10-Q for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012. 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.

###


This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the

information contained therein.

Source: Zhone Technologies, Inc via Thomson Reuters ONE

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