Zhone Technologies Inc. : Farmers Telephone Selects Zhone for Business and Residential IPTV Deployments

Farmers Telephone Selects Zhone for Business and Residential IPTV Deployments South Carolina service provider leverages ADSL Residential Gateway products to meet growing demand for IPTV services

Oakland, CA - January 30, 2013 -Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in FTTx network access solutions, today announced a new ADSL deployment with Farmers Telephone Cooperative, Inc., a South Carolina based triple-play service provider that has served Clarendon, lower Florence, Lee, Sumter and Williamsburg counties for more than 60 years. Farmers Telephone will deploy Zhone's 6519 ADSL Residential Gateway products to deliver IPTV services to business and residential customers.

The demand for IPTV services is growing at a rapid rate globally, presenting an opportunity for service providers to generate new revenue streams. In fact, there have been more than 15 million new IPTV subscribers during the past year according to a survey published on October 16, 2012 by Broadband Forum. As the demand for IPTV steadily increases, ADSL will continue to dominate the telecommunications industry. Service providers like Farmers Telephone are turning to Zhone's 6519 ADSL Residential Gateway technology because it enables faster data transmission over copper than a conventional voiceband modem.

"Zhone's ADSL technology provides an excellent platform for delivering IPTV services," said Jay Brown, chief network officer for Farmers Telephone. "Additionally, the company's customization program reduces installation time. The superior understanding and implementation of services to support various IPTV middleware made Zhone the best partner for this deployment."

Zhone's 6519 ADSL Residential Gateway products provide an advantage with the integration of Option 121 and other features required for the IPTV deployment. The 6519 ADSL Residential Gateway products have been successfully used for residential and business deployments for high-speed internet access (HSIA) and video-on-demand services.

"North America is leading in global IPTV adoption," said Brian Caskey, chief marketing officer for Zhone. "The growing demand for IPTV services presents great opportunity for U.S. service providers to reach new subscribers and generate revenue. Because new ways to engage in media gives consumers greater choice of how to watch television, service providers that offer IPTV will be able to meet the demand for new services and gain profit benefits from this emerging market. Through the deployment of ADSL Residential Gateway technology, Zhone helps its customers capitalize on this trend."

For more information about Zhone's ADSL Residential Gateway technology, please visit http://www.zhone.com/products/6519-A1/

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.

Contacts:

Zhone Investor Relations Tel: [phone] Fax: [phone] Email: [e-mail]

Aurora Arlet Edelman for Zhone Public Relations Tel: [phone] E: [e-mail]

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.

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