ZHONE PARTNERS WITH MEGASYS FOR ADVANCED UTILITY NETWORK MANAGEMENT OFFERING

MegaSys’ Telenium system to be integrated into the Zhone IMACS Product Line

Oakland, CA – March 6, 2013 – Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in FTTx network access solutions, today announced a strategic partnership with MegaSys for the integration of its Telenium system into the Zhone IMACS product line. This integration provides utility customers, such as energy providers, carrier class telecom networks and government agencies with unsurpassed processing power, network management capabilities, scalability and database growth opportunities, helping them to meet more stringent Power and Utility Network Management and operational requirements.

The Zhone IMACS product line – touting more than 150,000 systems deployed worldwide – offers utilities the most flexible and robust array of integrated network diagnostic and fault isolation capabilities on the market. Through the integration of MegaSys’ Telenium system, the Zhone IMACS now provide utility operators with fast, feature rich network management software. Structured on a high-performance object oriented database, Telenium offers operators essential features including auto-population of network architecture, circuit management capabilities, high throughput alarm processing and network element backup.

“This partnership merges two well-known companies and products in the utilities market – pairing together MegaSys’ reputable network management system with Zhone’s widely deployed intelligent channel bank,” said Joe Fortin, associate vice president of Zhone’s TDM products group. “As an integrated solution, we can provide customers with the most versatile and scalable management system.”

Recognized five times by the Utilities Telecom Council (UTC) as the Best Telecom Services Product, MegaSys’ Telenium network management software package is designed to provide telecommunications, cable, government and utility markets with the tools they need to keep their network performing at optimal levels.

“The concept of an integrated access for advanced voice and data applications began with the introduction of the IMACS,” said Brian Caskey, Zhone’s chief marketing officer. “Zhone has not strayed from this vision. With the integration of MegaSys’ Telenium system, we will continue to provide customers with the fastest and most complete network management solution available today.”

The versatility, scalability and ease of configuration of MegaSys’ Telenium are what make it the network management solution of choice for energy providers, carrier class telecom networks and government agencies. Features include:

• Fault Management – Processes network alarms in real-time to isolate and fix problems quickly.
• Configuration Management – Configures and manages network elements from multiple locations.
• Accounting Management – Provides an up-to-date list of what equipment is in the network
• Performance Monitoring – Analyzes graphical trends and service chains to make informed decisions.
• Security Management – Keeps network and data safe through advanced security features.

Optimized for the unique needs of utilities, the Zhone IMACS support a wide range of specialty traffic, including transmission line protection control (EIA-232 electrical and IEEE C37.94 optical), SCADA, surveillance video, substation automation and alarms, radio, Ethernet and telephony.

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.

About MegaSys

MegaSys™ Computer Technologies is a major supplier of advanced Network Management Systems for the telecommunications market based on its flagship product Telenium™. MegaSys has developed the most powerful and flexible network management system available, designed on an intelligent, high performance, object oriented database that provides unsurpassed processing, network management and database growth. Earning a reputation as a world-class performer in network management, MegaSys has delivered Telenium solutions across North America, Asia-Pacific and Europe. MegaSys customers include wireless and broadband carriers, CLECs, IXCs, cable companies, private utilities and state agencies, ranging in size from small regional networks to large national networks.

Contacts:

Dave Woronuk
President and CEO,
MegaSys Computer Technologies
Tel: (403) 295-0511
Email: dave.woronuk@megasys.com

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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