Zhone Technologies Strengthens Canadian Presence as SaskTel Deploys Zhone MXK™ Platform

OAKLAND, Calif., April 28, 2015 /PRNewswire/ -- Zhone Technologies, Inc. (NASDAQ: ZHNE), a global leader in FTTx network access solutions, today announced that Saskatchewan Telecommunications Holding Corporation (SaskTel), a service provider of business and residential customers in the province of Saskatchewan, Canada has deployed Zhone Technologies' MXK platform in yet another step to replace and modernize the SaskTel legacy voice network. In addition to next generation voice over IP technologies, SaskTel is using Zhone's MXK hardware to deliver triple-play services in rural areas of the province.

"By modernizing our voice network we can achieve significant savings in our ongoing operational costs, enable the integration between our wireline and wireless networks and enhance our customer service experience," emphasized Daryl Godfrey, Chief Technology Officer, SaskTel. "In addition to cost savings with this new architecture, our revitalized network will enable us to evolve our architecture to IMS and better integrate our wireline and wireless networks."

"When we started the process to select a voice line access gateway product, we wanted to assure that we could also provide any future broadband service over the same platform. This is especially important for us as we continue to develop our rural areas where we need to capitalize on a multi-service access device that is cost effective. On all these fronts, the Zhone MXK was the clear leader."

"SaskTel is an ideal customer to showcase Zhone's position as market leader in Canada for voice network modernization projects and multi-service broadband access solutions," explained Michael Fischer, Vice President of Sales, Zhone Technologies. "Service providers in North America – and around the globe – rely on the core functionalities of the Zhone MXK, including flexibility, scalability and ease of use. Our customers know it is one of the leading solutions for both voice modernization and triple play services."

To date, Zhone has deployed enough MXK platforms to support more than 45 million total potential subscribers. Featuring industry-leading density, scalability and switching capacity, the Zhone MXK is the industry's first terabit access concentrator and provides non-blocking capacity of up to 3,600 100 Mbps GPON subscribers or 360 1G Active Ethernet subscribers.

For more information about Zhone's MXK solutions, please visit www.zhone.com/products/MXK/.

About SaskTel
Saskatchewan Telecommunications Holding Corporation (SaskTel) is the leading full service communications provider in Saskatchewan, with $1.2 billion in annual revenue and over 1.4 million customer connections including over 618,000 wireless accesses, 437,000 wireline network accesses, 258,000 Internet accesses and 103,000 maxTV subscribers.  SaskTel offers a wide range of communications products and services including competitive voice, data, Internet, entertainment, security monitoring, messaging, cellular, wireless data and directory services. In addition, SaskTel International offers software solutions and project consulting in countries around the world.  SaskTel and its wholly-owned subsidiaries have a workforce of approximately 4,000 full-time equivalent employees (FTEs). Visit SaskTel at www.sasktel.com.

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, wastewater and CFC free.

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.

Forward-Looking Statements
This press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "goal," "intend," "may," "plan," "project," "seek," "should," "target," "will," "would," variations of such words, and similar expressions are intended to identify forward-looking statements. In addition, forward-looking statements include, among others, statements that refer to financial estimates; projections of revenue, margins, expenses or other financial items. Readers are cautioned that actual results could differ materially from those expressed in or contemplated by the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, commercial acceptance of the Company's products; intense competition in the communications equipment market; the Company's ability to execute on its strategy and operating plans; and economic conditions specific to the communications, networking, internet and related industries. In addition, please refer to the risk factors contained in the Company's SEC filings available at www.sec.gov, including without limitation, the Company's annual report on Form 10-K for the year ended December 31, 2014. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to update or revise any forward-looking statements for any reason.

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SOURCE Zhone Technologies, Inc.

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