Zhone Scores in Egypt

OAKLAND, Calif. -- Zhone Technologies, Inc. (NASDAQ:ZHNE - News), the first company dedicated to building total-delivery solutions for voice, data, video and entertainment services worldwide, today announced a major project with Telecom Egypt, who will deploy Zhone's MALC Broadband Loop Carrier Technology to provide VoIP and Data Services for various parts of their Network.

The project combines Zhone MALC with Nortel CS2K Softswitch and ATM network technology, allowing circuit switched voice to move onto the pure packet network transparently to end users in terms of service availability, call quality and billing. Zhone's MALC also provides a proven roadmap for the delivery of new voice, video and data services such as ADSL2+, VDSL2, PON, Ethernet and IP Video. Eng. Dawlat El Badawy, Vice Chairman for Project Planning, Telecom Egypt said: "The Scope of this Project is to install a Nortel CS2K Softswitch along with the Zhone MALC as access concentrators in the TE network. This will allow TE to provide its customers with voice services including both POTS and VoIP Services."

"The Introduction of the MALCs in our network will allow TE to support its current voice services needs based on a next generation platform as well as investigating future access services, delivery options and network optimisations, which will result in more value added services to TE customers," Eng. Badawy added.

Telecom Egypt has a fixed line customer base in excess of 10.6 million subscribers, which makes it the largest fixed line provider in the Middle East and Africa. The migration will initially only apply to voice services, with other services under future consideration.

Zhone Technologies Inc. (Nasdaq: ZHNE)