Zhone Technologies Renews Credit Facility with Silicon Valley Bank

Zhone Technologies, Inc. (NASDAQ:ZHNE), a global pioneer in FTTx network access solutions, today announced that it has renewed its credit facility with Silicon Valley Bank. The facility provides working capital financing of up to $25.0 million to support borrowings and letters of credit. Zhone has renewed this facility every year since 2003 on substantially similar terms. Details of the arrangement can be found in the loan agreement and disclosures included in Zhone’s Annual Report on Form 10-K for the year ended December 31, 2010.

"Each year we renew this credit facility so that we can continue to invest in the development of leading technologies for our customers,” stated Kirk Misaka, Zhone’s Chief Financial Officer. "Silicon Valley Bank has been a valuable financing partner since 2003 and has provided us with flexible financing to meet the changing needs of our business.”

"We are happy to support Zhone Technologies in the execution of their global business plan extending a relationship we have had for many years,” stated Robert Hartinger, Managing Director of Silicon Valley Bank. "This facility provides the company with a low cost financing solution supporting both U.S. and international sales activities in a variety of countries around the world assisting Zhone in realizing their goals.”

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.

About Silicon Valley Bank

Silicon Valley Bank is the premier commercial bank for companies in the technology, life science, venture capital/private equity and premium wine industries. SVB provides a comprehensive suite of financing solutions, treasury management, corporate investment and international banking services to its clients worldwide. Through its focus on specialized markets and extensive knowledge of the people and business issues driving them, Silicon Valley Bank provides a level of service and partnership that measurably impacts its clients' success. Founded in 1983 and headquartered in Santa Clara, Calif., the company serves clients around the world through 27 U.S. offices and international operations in China, India, Israel and the United Kingdom. Silicon Valley Bank is a member of global financial services firm SVB Financial Group (NASDAQ:SIVB), with SVB Analytics, SVB Capital, SVB Global and SVB Private Client Services. More information on the company can be found at http://www.svb.com.

Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Financial Group is also a member of the Federal Reserve System.