Zhone Technologies Sets Earnings Announcement Date for Fourth Quarter 2010 Financial Results and Announces Preliminary Estimates

Zhone Technologies, Inc. (NASDAQ:ZHNE), a global pioneer in FTTx network access solutions, today announced preliminary estimates for the fourth quarter 2010. Based on the preliminary information, revenue for the fourth quarter 2010 is expected to be approximately $31 million. Despite the anticipated lower revenue level, gross margins are expected to be slightly higher than the previously provided guidance of between 34% and 36. Operating expenses are expected to be in line with previously provided guidance of between $13.5 million and $14.5 million.

These results are preliminary, and therefore, subject to the company's completion of its customary quarterly closing and review procedures. Zhone is scheduled to release its final fourth quarter results on Wednesday, January 26, 2011, after the close of regular market trading.

Zhone will conduct a conference call and audio webcast to discuss further details of its fourth quarter 2010 results at approximately 2:00 p.m. PT / 5:00 p.m. ET on Wednesday, January 26, 2011. This call is open to the public by dialing [phone] for U.S. callers and [phone] for international callers and then entering passcode 98126341. The audio webcast will be simultaneously available on the Investor Relations section of Zhone's website at http://www.zhone.com/investors/.

A replay of the conference call will be available after the original call by dialing [phone] for U.S. callers and [phone] for international callers and then entering passcode 10252332. An audio webcast replay will also be available online at http://www.zhone.com/investors/ for approximately one week following the original call.

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, waste-water 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 products names are all subject to change without notice.

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