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Zhone Technologies Announces Update Concerning Reverse Stock SplitOAKLAND, Calif. --(Business Wire)-- Zhone Technologies, Inc. (NASDAQ:ZHNE), the global leader in single-platform delivery of voice, DSL, EFM, FTTx and wireless services, announced today that The Nasdaq Stock Market ("Nasdaq") has extended the time by which Zhone must regain compliance with its minimum bid price requirement until March 16, 2009. Earlier this year, Zhone decided to pursue a reverse stock split in order to regain compliance with the Nasdaq requirement. On October 16, 2008, Zhone's stockholders approved a reverse stock split of between 1-for-5 and 1-for-10, such that between 5 and 10 shares of issued and outstanding common stock will convert into one share of common stock, with the final exchange ratio to be determined by Zhone. With the Nasdaq extension of time, Zhone now plans to finalize the exchange ratio and complete the reverse stock split in the first quarter of 2009. "After additional consideration, we still believe that a reverse stock split is the best alternative to comply with Nasdaq's minimum bid requirements and to ensure that our stock continues to trade on The Nasdaq Global Market," stated Mory Ejabat, Zhone's chief executive officer. "With the additional time to regain compliance, however, we can further assess the appropriate exchange ratio until early next year." About Zhone Technologies -- Access for a Converging World Zhone Technologies, Inc. (NASDAQ:ZHNE) is a global leader in multi-service access network solutions, serving more than 700 of the world's most innovative network operators. The company offers the industry's broadest fully-integrated portfolio of MSAP, FTTx, EFM and Wi-Fi access technologies, enabling a full suite of services, including residential and business broadband, VoIP, and High-Definition IPTV. Zhone's converged multi-service access platform helps operators rapidly deploy premium services using copper, fiber, and wireless while improving network agility and reducing costs. www.zhone.com. 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. Copyright (C) 2008 Zhone Technologies, Inc. All rights reserved. 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. 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, the possibility that the reverse stock split may not be completed in accordance with the timing or terms described in this release, or at all, the possibility that the intended benefits of the reverse stock split may not be fully realized, the possibility that Zhone may not be able to sustain a stock price adequate to comply with Nasdaq's minimum bid requirements even with the reverse stock split, the possibility that Zhone may not meet other criteria for continued listing on Nasdaq, as well as other 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, 2007 and Zhone's quarterly reports on Form 10-Q for the quarters ended March 31, 2008 and June 30, 2008. 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. Zhone undertakes no obligation to update or revise any forward-looking statements for any reason. |
