Sorrento Networks Completes Acquisition of Zhone Technologies’ GigaMux Business Unit

DENVER – Jan. 23, 2008 – Sorrento Networks today announced it has completed the acquisition of the GigaMux product portfolio from Zhone Technologies, Inc. (NASDAQ: ZHNE), a global provider of advanced communications equipment and a leading supplier for VoIP, IPTV, and Ethernet over copper and fiber access lines.

Under terms of the agreement, the GigaMux product line and related services formerly offered by Zhone, including the GigaMux 50, GigaMux 1600/3200 and GigaMux 6400 are now offered and supported by Sorrento Networks.

“Sorrento Networks exists because the metro optical access market offers the opportunity for growth: growth in bandwidth, growth in services, growth in subscribers and growth in revenue,” said Jim Nevelle, co-founder and CEO of Sorrento Networks. “Our vision is to deliver growth potential to our customers by providing exceptional support for existing GigaMux products and also by expanding the GigaMux portfolio to offer new, advanced services and capabilities.”

Sorrento Networks competes in the metro/regional wavelength-division multiplexing (WDM) segment within the optical networking market. According to Heavy Reading, in a report commissioned by Sorrento in December 2007, the forecast for the metro/regional WDM market is positive – with a 9.6 percent compound annual growth rate (CAGR) from 2007-2012.

“This acquisition signals great news for GigaMux customers as well as the optical networking industry. We believe Sorrento will take the GigaMux product portfolio to the next level and, in the process, deliver advancements to the market as a whole,” said Mory Ejabat, chairman and CEO for Zhone Technologies.

About GigaMux
The GigaMux products will enable Sorrento Networks customers to provide differentiated services from Ethernet to Sonet/SDH for Edge/Access/Regional and Metro WDM applications. Supporting CWDM, DWDM and ROADM in the same platform, the GigaMux products provide flexible deployment options over a wide range of topologies, enabling carriers and enterprises to expand their network capacity on a wavelength by wavelength basis.

About Zhone Technologies — Access for a Converging World
Zhone Technologies, Inc. (NASDAQ: ZHNE) is a provider of advanced communications equipment to more than 600 operators worldwide. The company’s broad line of access networking solutions enables the full range of multi-play services, including residential and business broadband, VoIP, IPTV, and Ethernet. Zhone’s converged access platform improves network agility and reduces costs, allowing operators to rapidly deploy premium services on their existing copper and fiber infrastructure while providing a seamless migration path to an efficient, all-IP network. www.zhone.com.

About Sorrento Networks
The original Sorrento Networks was founded in 1993, and acquired by Zhone Technologies in 2004. Today, the Sorrento brand and product line are being resurrected by co-founders Jim Nevelle and Tim Anderson, with financial support from CHB Capital Partners (http://www.chbcapital.com). The new Sorrento Networks will provide service and support to all existing GigaMux customers worldwide, and is focusing research and development efforts to expand its portfolio of edge-to-regional CWDM, DWDM and ROADM solutions for carriers and enterprises. Sorrento is headquartered in Denver, Colorado, with offices in Oakland, California and Stuttgart, Germany. For more information, visit www.sorrentonet.com.
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