News & Press

First FTTH Enabled Residential Community in Egypt Empowered by Zhone Technologies and Palm Hills Developments - UPDATE

Industry-leading MXK™ solution providing state-of-the-art entertainment services to more than 7,000 residences in new real estate development

Zhone Technologies, Inc. (NASDAQ:ZHNE), a global leader in FTTx network access solutions, today announced a new MXK™ deployment with Palm Hills Developments (PHD), a leading real estate company in the Egyptian market, to provide the first fiber-to-the-home community in the region. The new real estate complex, consisting of more than 1,000 residences, will provide access to state-of-the-art entertainment services such as high-speed broadband connectivity to every home within the development.

As of October 2011, PHD developed the first residential real estate complex in Egypt to provide IPTV services over GPON, enabled by Zhone's MXK solution. The Zhone MXK Optical Line Termination (OLT) high-density platform was used as the main FTTx concentrator with GPON technology for the initial deployment phase. The flexibility to add on other access solutions that may be required as the deployment process expands was an essential value to PHD.

"When designing our brand-new luxury real estate complex with the latest entertainment services, we were determined to provide residents with the newest applications and superior experience, requiring best-in-class FTTH technology," stated Hisham Salah, vice president of technology for Palm Hills Developments. "We chose Zhone GPON technology as the right offering for the deployment because their solutions are flexible, reliable and cost-effective. The products are stable, and easy to operate and deploy."

With end-to-end management and end-user services interfaces based on Zhone solutions, PHD benefits from the flexibility of simple one-time configuration, a common service portfolio and unique end-user-specific service identification. Zhone carrier class access solutions, including its zNID Optical Network Terminal ONT, are integrated with PHD back office servers and network components to enable triple-play services.

Salec Egypt S.A.E., Zhone's partner in Egypt, carried out the proof of concept, and the integration work with various backend platforms including the IPTV. "We were confident that the Zhone's leading GPON solutions, based on the MXK will be a success with the first FTTH in Egypt" stated Mahmoud Soliman, chief executive officer of Salec. "Salec's long years of partnership with Zhone, and its professional services team enabled a smooth rollout of the project."

"Zhone is proud to coordinate the first Egyptian GPON deployment for IPTV; our offerings seamlessly address the growing traffic and demand for high quality of service from its customers," stated Brian Caskey, chief marketing officer for Zhone. "Our extensive experience managing the complexity of multi-service access is demonstrated by our comprehensive portfolio of scalable FTTx solutions." We are very proud to work with PHD and Salec Egypt S.A.E. on this exciting project.

To-date, Zhone has deployed more than 3,000 of its fully redundant, carrier-grade all-IP MXK platforms with more than 150 service providers globally, signaling an FTTx customer growth rate of more than 450 percent in the 3-year period from January 2009 to January 2012. Total subscriber capacity supported by these deployments now exceeds 20 million. Featuring industry-leading density, scalability and switching capacity, the MXK is the industry's first terabit access concentrator and provides non-blocking capacity of up to 3,600 100 Mbps GPON subscribers or 360 1G Active Ethernet subscribers. Zhone has also driven more than 8500 percent ONT growth and more than 9,800 percent OLT growth since solution inception.

For more information about Zhone's MXK solution, please visit http://www.zhone.com/products/MXK/.

About Zhone Technologies

Zhone Technologies, Inc. (NASDAQ: ZHNE) is a global leader in fiber access transformation for service provider and enterprise networks, 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 Palm Hills Development (PHD)

Palm Hills Developments (PHD) is a leading real estate company in the Egyptian market, primarily developing integrated residential, commercial real estate and resort projects. Founded in 2005 by Mansour and Maghraby Investment and Development (MMID), the company, which is listed on the Cairo-Alexandria Stock Exchange and the London Stock Exchange, was the result of a vision to create self-sufficient communities through the utilization of integrated tools. Presently PHD possesses one of the largest land banks in the country and is rapidly growing into a regional player, thanks to a geographically diversified land bank suitable for the development of a broad range of real estate products all fashioned to reflect the country's culture as well as the clients' lifestyle and prerequisites. Currently, PHD maintains an impressive roster of 19 launched, and 10 projects currently under construction, strategically located nationwide and in the region. For more information, please visit: www.phdint.com

Contacts:

Zhone Investor Relations Tel: +1 510-777-7013 Fax: +1 510-777-7001 Email: investor-relations@zhone.com
Aurora Arlet Edelman for 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.

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