Zhone to supply GPON FTTH gear to Yadkin Valley Telephone

SEPTEMBER 30, 2010 -- Zhone Technologies, Inc. (NASDAQ: ZHNE) has announced another North America FTTH broadband stimulus win with Yadkin Valley Telephone Membership Corp.

Over the next three years, Yadkin will use Zhone's MXK GPON equipment, as well as its zNID optical network terminals (ONT), to extend high-speed fiber-optic connectivity to 5,783 homes, businesses, and schools in the rural North Carolina counties of Yadkin, Davie, and Iredell -- areas that were previously seen as a challenge to serve both economically and technologically.

Yadkin had been using Zhone's MALC copper platform, specifically its ADSL2+ and POTS systems but decided to upgrade to Zhone's GPON technology in 2007 as part of a FTTH rollout plan that would improve speeds and service reliability for all customers -- not just those in the larger cities.

While Yadkin has already passed more than 16,000 homes and businesses -- or 42 percent of structures within its footprint -- targeted for this long-term project through internal funding, the recent $21.6 million award from the U.S. Department of Agriculture will enable Yadkin to more quickly and efficiently reach the rural communities using Zhone's single line multi-service (SLMS) access systems.

"One of the initial goals for our FTTH project was to reach all customers within our regional footprint with fiber-based triple-play services by 2019," explained Mitzie Branon, general manager of the Yadkin Valley Telephone Membership Corp. "However, with the receipt of the broadband stimulus funding and the support of Zhone as our GPON partner, we will be able to overcome the anticipated cost challenges and time-to-market requirements for the rural fiber extension and complete our entire FTTH project by 2015 -- which is four years earlier than initially planned."

"Zhone's one-box-fits-all MXK and zNID system is really ideal for the fiber architecture and service models we've designed for our current footprint," said Scott Rudolph, assistant general manager for Yadkin. "Zhone has been a proven partner since 2004 and we are thrilled that their MXK solution aligned so well with the needs of this critical broadband stimulus project."

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