Press Release

Oakland, CA — January 16, 2013 — Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in FTTx network access solutions, today announced that its industry-leading ONT was deployed by North State, a leading broadband and entertainment provider based in High Point, North Carolina, to deliver IPTV and video services via fiber-to-the-home (FTTH). As one of the largest independent communications and home entertainment providers in North Carolina, North State maintains a robust network comprising more than 68,000 miles of high-capacity fiber delivering voice, video, broadband Internet for residential services and networking, IP services, and critical back-up and disaster recovery solutions for businesses.

In July 2012, North State enhanced their Plex Advanced TV offering, providing customers the highest quality interactive TV services available. Supported by Zhone’s cutting edge ONTs with integrated Residential Gateway functionality, North State has since then moved more than 5,000 live customers to the new platform. With Zhone as the access platform, the ONT acts as a smart device providing full gateway functionality, thus eliminating the requirement for a second device inside the home to control routing functionality needed to deliver enhanced features.

“Zhone has proven to be a valuable partner in our growth strategy over the last 12 years, providing the technology solutions and support needed to design flexible access networks for the latest service offerings,” said Royster Tucker III, chief operating officer of North State. “Zhone’s support of our video platform and the ability of the MXK system to rapidly and effectively support our unique network traffic needs will help improve our ability to deliver IPTV services effectively to our customers. With the migration flexibility of the existing MALC installed base, we were able to ensure that the new network build, utilizing the MXK system, would be completed cost-effectively.”

Zhone’s consistent leadership and solution efficiencies have not only enabled North State Communications to expand the reach of its services, but rapidly upgrade all of its offerings when needed to maintain a competitive edge. Innovative IPTV services, such as Plex Advanced TV, enable North State Communications to deliver a consistent premium entertainment experience across multiple screens and networks.

“The rapid deployment of Plex Advanced TV, using Zhone’s MXK is a testament to the unique flexibility we have in supporting a variety of Gigabit Passive Optical Network (GPON) and Active Ethernet (AE) service models,” said Brian Caskey, chief marketing officer at Zhone. “Specifically, Zhone’s MXK platform, in combination with other solutions from the Zhone FiberHome™ portfolio, provides the cost efficiency needed to deliver advanced triple-play services in a highly competitive price range.”

Press Release

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