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Park Square at Seven Oaks Apartment Community to Deliver Super-Fast Broadband Services for Residents through FiberLAN

May 21, 2014

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.comPark Square at Seven Oaks Apartment Community to Deliver Super-Fast Broadband Services for Residents through FiberLAN Southern California Apartment Complex turns to Zhone Technologies and Qypsys to enable sophisticated video and data services for tech-savvy community Oakland, CA - May 21, 2014- Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in FTTx network access solutions and Qypsys, a premier infrastructure integrator, today announced a new FiberLAN deployment with Fuller Apartment Homes, Inc. for its 224 unit Park Square at Seven Oaks upscale apartment community currently under construction in Southwest Bakersfield, Calif. Through a strategic partnership with TE Connectivity, Zhone's equipment will enable the apartment community to offer its residents super-fast fiber optic internet service through a cost efficient and greener alternative, FiberLAN technology. "Fast broadband access has quickly become a must-have amenity for apartment hunters today," said Andrew Fuller, president of Fuller Apartment Homes. "The availability of sophisticated applications and video services, made possible to residents at the Park Square at Seven Oaks community through this new network, will make this one of the most desirable communities in the area.  Zhone's solutions have been adaptable to the unique needs of this apartment development and Zhone and Qypsys have worked hard to see that all our needs are met." With the goal of attracting residents by having the fastest broadband services around, the owners of the new Park Square at Seven Oaks apartment community turned to Zhone's extensive portfolio of products and services. Zhone's MXK 198-10GE is being used in the clubhouse and a zNID-GPON-2424-NA will be installed in each of the apartments, empowering the complex to provide its residents with a less expensive and far higher-speed Internet package than the local service providers in the area. "The use of fiber-based access networks has exploded across multiple markets in recent years," said Alan Bertsch, president of Qypsys. "The speed, reliability and security of these networks make them a favorite choice of government customers, healthcare and hospitality. The decision by the leadership at Fuller Apartment Homes to use this technology at Park Square at Seven Oaks is a great indication of their forward-thinking and commitment to delivering the best amenity experience possible to their residents." "Zhone, TE Connectivity and Qypsys worked with the Park Square at Seven Oaks development team to identify the best solution to set the project apart from all other apartment communities in the area," said Brian Caskey, chief marketing officer at Zhone Technologies. "Zhone is committed to providing innovative products and services that meet the unique needs of our customers." Zhone's Fiber-based LAN is a high-performance, high density GPON-based Passive Optical LAN solution delivering high speed data, voice and video to multi-level, multi-unit commercial and industrial complexes, including hotel rooms, bandwidth demanding desktops and work-stations. It can be deployed in offices, rooms, factories or other harsh industrial environments, delivering comprehensive connectivity for any Local Area Networking requirement. Zhone was ultimately chosen for its small form factor OLT, which was a less expensive alternative compared to others on the market. 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 visit http://www.zhone.com. About Zhone TechnologiesZhone 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. About Qypsys Qypsys specializes in the design and deployment of advanced technology platforms. Through the combination of scalable installation forces, RCDD design staff, and certified network engineering capabilities, Qypsys is able to support complex infrastructure projects as a prime or a valuable subcontractor. Qypsys provides turnkey solutions for the distribution of voice, data, and video services across LAN, campus, and metro environments. Qypsys' primary technologies are Passive Optical LANs (POL), WiFi, and Distributed Antenna Systems (DAS). This combination of wired and wireless access solutions makes Qypsys uniquely suited to support enterprise-wide infrastructure initiatives. In addition to turnkey solutions, Qypsys leverages its technical and installation capabilities as a service offering to strategic partners. By providing a la carte access to the various skill sets in our full integration offerings, Qypsys creates a strong value-add proposition for our business partners. http://qypsys.com/ About TE Connectivity TE Connectivity's Optical LAN Solution (OLS) cabling system for Enterprise PON leverages the distance and bandwidth of singlemode fiber to deliver converged voice, video, data, and building automation over a single strand of fiber.  OLS contributes to measurable OpEx and CapEx savings with Green benefits.  For more information on TE's OLS system, visit www.PONsource.com. TE Connectivity is a global, $14 billion company that designs and manufactures approximately 500,000 products that connect and protect the flow of power and data inside the products that touch every aspect of our lives. Our nearly 100,000 employees partner with customers in virtually every industry-from consumer electronics, energy and healthcare, to automotive, aerospace and communication networks-enabling smarter, faster, better technologies to connect products to possibilities. More information on TE Connectivity can be found at http://www.TE.com. 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 and the Company's quarterly report on Form 10-Q for the quarter ended March 31, 2014. 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 GlobeNewswire on behalf of GlobeNewswire 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 GlobeNewswire [HUG#1787467]


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