Zhone Technologies Announces zNID? Deployment with Clarksville Department of Electricity Tennessee utility enables smart metering and triple play services through Zhone's Gigabit Active Ethernet ONT

(NASDAQ:ZHNE), a global leader in FTTx network access solutions, today announced a new (CDE), a utility headquartered in Clarksville, TN. Together, Zhone and CDE are building an FTTX network with Active Ethernet to support fast delivery of more affordable and reliable automated metering infrastructure (AMI) high-speed Internet access, VoIP and video services to residential and business subscribers in Clarksville.

"Serving more than 60,000 homes in Clarksville, the FTTX network, enabled by Zhone, ensures a high quality triple play media experience for residents and businesses, while allowing CDE to deploy advanced metering infrastructure," explained Christy Batts, Broadband Division manager at CDE. "The zNID's feature set aligns well with our specific field requirements, enabling Zhone to provide us with optimum cost efficiency and maximum service differentiation in the network to support our smart grid and individual subscriber service needs."

"The Zhone RF-video capable zNID ONTs deliver superior IPTV, voice and broadband data to CDE's customers in Clarksville," noted Brian Caskey, chief marketing officer for Zhone. "They also enable CDE to engage smart grid technologies allowing the utility, as well as their customers to become more energy efficient. Leveraging deep experience in managing the complexity of multi-service access, we have built the industry's most comprehensive portfolio of FTTx customer premise equipment, for both Active Ethernet and GPON standards."

Zhone understands the increased competition, pricing pressures and budget limitations faced by its customers, while the demands for high bandwidth services and applications keep growing. Combining this position and leveraging deep industry experience, Zhone continues to provide robust, cost efficient FTTx products and solutions that differentiate offerings to its customers globally. The new series of zNID Active Ethernet ONTs () provide a highly competitive price point while providing a future-proof solution for complex media-rich applications.

For more information about Zhone's zNID solution or to learn more about the other solutions offered by Zhone, please visit .

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.

About CDE Lightband

The Clarksville Department of Electricity is a municipal power provider for the city of Clarksville, TN with over 60,000 metered homes and business. CDE Lightband launched their smart grid and broadband services in January of 2008 with full service offerings of digital video, high speed internet and phone services. CDE Lightband provides broadband services to all Clarksville Department of Electricity customers in the Clarksville area and currently serves over 12,700 customers in the City of Clarksville.

Contacts:

Zhone Investor Relations
Tel: +1 510-777-7013
Fax: +1 510-777-7001
Email: investor-relations@zhone.com
Zhone Public Relations
Tel : +1 404-460-8578
Email: aurora.arlet@edelman.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.

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, 2010 and the Company's quarterly reports on Form 10-Q for the quarters ended March 31, 2011, June 30, 2011 and September 30, 2011. 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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