Taylor Selects Zhone

OAKLAND, Calif. -- Zhone Technologies, Inc. (NASDAQ: ZHNE), a global provider of advanced communications equipment and a leader in VoIP, IPTV, and Ethernet over copper and fiber access lines, today announced that Taylor Telephone Cooperative has chosen Zhone’s zNID intelligent residential gateway for all future smart home upgrades. Taylor Telephone began an initial roll-out of Zhone’s zNID-GPON system in June of this year.

(Editor’s Note: Please see Zhone release dated June 12, 2007: Zhone Sees Immediate Demand for New Intelligent Network Gateway and ITU G.984 GPON Multi-Service Platform http://www.zhone.com/about/news/2007/GPON-demand.en-us)

Citing dramatically reduced installation time, in addition to superior customer Quality of Experience (QoE), Taylor Telephone announced that Zhone’s zNID will be the premier platform for the company’s fiber to the home (FTTH) initiative delivering voice and multi-megabit DSL service.

Zhone’s implementation of the ITU standardized HomePNA technology uses dual HomePNA chips to enable simultaneous operation over standard phone line and/or regular coax cable, nearly doubling the home network’s bandwidth capacity. Zhone’s HPNA standard zNID, radically reduces installation times. Since coax cable and phone line are pre-wired in most homes, technicians avoid the time and risk of drilling, crimping and running new cable.

“Overall ease of use and installation has made the zNID extremely popular with our field technicians who would rather not crawl under a customer’s house or climb into an attic to run cable,” said Bill Whisenhunt, plant manger for Taylor Telephone Cooperative. “We save in truck roll and installation costs, and just as importantly, we avoid the disruption and anxiety that drilling and cabling poses to our customers.”

Zhone Technologies Inc. (Nasdaq: ZHNE)