Zhone Technologies Announces zNID™ Deployment with Clarksville Department of Electricity

Zhone Technologies, Inc. (NASDAQ:ZHNE), a global leader in FTTx network access solutions, today announced a new zNID™ Optical Network Terminal (ONT) deployment with the Clarksville Department of Electricity (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 (announced in October 2011) 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 http://www.zhone.com/products/znid/.

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.

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.

Forward-Looking Statements

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