Primus Picks Zhone, Tekelec

OAKLAND, Calif. -- Zhone Technologies, Inc. (NASDAQ:ZHNE), the first company dedicated to building total-delivery solutions for voice, data and content services worldwide, and Tekelec (NASDAQ:TKLC), a leading developer of high-performance network applications for next-generation fixed, mobile and packet networks, announced today that Primus Telecommunications Canada (Primus Canada) is deploying the companies' joint solutions. Primus, the largest alternative communications company in Canada, has selected and deployed Zhone's Multi-Access Line Concentrator (MALC(TM)), the Tekelec 6000 VoIP (voice over Internet protocol) Application Server and Tekelec 9000 Distributed Switching Solution (Tekelec 9000) for its DSL and local telephone service offering.

Primus Canada's residential local voice offering provides subscribers with full-featured VoIP services on what appears to the subscriber as a traditional local phone service. An elegant web portal extends subscribers advanced call features to include find-me/follow-me, call forwarding, personalized call treatments by caller and individualized hold music all over their existing telephones.

Because these advanced voice and data services are being delivered over the incumbent carrier's fixed copper loops, lifeline 911 emergency services remain fully supported and uncompromised. The services are being offered today in many urban areas across Canada, already reaching a market of approximately 3 million Canadian households.

As part of the offering, subscribers may select from a choice of broadband speeds up to 22 megabits per second. The solution allows subscribers to transform their existing local telephone service to include high-speed Internet service over the same telephone line simply, reliably and securely -- thereby reducing costs. Primus also offers a choice of long-distance services, including the very popular unlimited plans. Completing the triple-play bundle with the addition of IP video capabilities is under development and was a key consideration in Primus' vendor selection.

"We at Primus are committed to being the leader in delivering innovation," said Matt Stein, vice president, new technology and services at Primus Canada. "By providing the fastest download speeds in the country along with competitively priced bundles, innovative applications and a rapidly expanding footprint, Primus is reaffirming its position as a true industry innovator. This new threshold of Internet access speed, advanced features and savings provides a dramatically improved user-experience for our customers."

Zhone Technologies Inc. (Nasdaq: ZHNE)

Tekelec