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Zhone Technologies' Solutions Enable Century City Connect to Offer an Open-Access Network in South Africa

July 31, 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: E: investor-relations@zhone.comZhone Technologies' Solutions Enable Century City Connect to Offer an Open- Access Network in South AfricaZhone's GPON and Active Ethernet provide full-fiber connectivity with speeds up to 10 Gbps Oakland, CA - July 31, 2014 - Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in the fiber access market, today announced a new GPON and Active Ethernet deployment with Century City Connect in Cape Town, South Africa. Century City Connect is an open-access network provider that allows blue-chip Internet Service Providers (ISPs) to provide high-speed, next-generation broadband services to people living and working in Century City. Through the installation of Zhone's FTTx GPON and Active Ethernet, Century City Connect provides an end-to-end fiber network to enable voice, broadband and multimedia services to be delivered over the network. Century City Connect provides fast broadband access within the Century City precinct, which is a mixed-use development in Cape Town that combines office, retail, residential and leisure components in an integrated and aesthetically pleasing urban environment. As a relatively new precinct, Century City did not want multiple communications providers trenching roads and duplicating network infrastructure.  Century City Connect was formed to deploy a full-fiber infrastructure and operate as an Open-Access Network with minimal disturbance to the precinct, providing fiber connectivity to business and residential complexes within Century City. "The new fiber network, made possible through Zhone's solutions, will encourage businesses in Cape Town to relocate and residents to buy property in Century City since they will have access to the best broadband services in the area," said Greg Deans, director at Century City Connect. "The network differentiates Century City from other developments within Cape Town by providing the advanced high-quality services necessary to attract and retain customers." Century City Connect can deliver speeds up to 10 Gbps using Zhone's MXK 819, zNID 2301, 2402, 2424a, 8 port GPON Cards and 10G Active Ethernet Cards. Through Century City Connect's full-fiber network, individual Internet service providers (ISPs) have the option to connect and deliver their individual service packages to end users. The network also creates the opportunity for smaller ISPs, which are not capable of deploying their own fiber networks, to offer the service to businesses in Century City using the open access network. "Utilizing Zhone's GPON for residential and businesses, and Active Ethernet for large corporations, Century City Connect is now able to offer a tiered service to ISPs, ensuring the network can meet the unique needs of each customer," said Brian Caskey, chief marketing officer at Zhone Technologies. "Zhone's platform delivers the flexibility required to meet the needs of residents and businesses alike." 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 About Zhone TechnologiesZhone Technologies, Inc. (NASDAQ: ZHNE) is a global leader in the fiber access market, 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, wastewater 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, 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#1844182]

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