July 6, 2004 Oakland, CA--Zhone Technologies, Inc., completed the acquisition of Sorrento Networks Corporation.

As a result of the merger, Sorrento stockholders will receive 0.90 of a share of Zhone common stock for each outstanding share of Sorrento common stock. Zhone's shares will continue to trade on the NASDAQ Stock Market under the symbol ZHNE. Sorrento's shares will no longer be traded under the symbol FIBR.

"This transaction allows the combined company to address a broader portfolio of service providers," said Mory Ejabat, chairman and chief executive officer of Zhone. "Customers of both companies will realize the benefits of the combined solution set."

The combined company will have a customer base that includes some of the world's largest network service providers representing more than 300 existing carrier and cable operators on six continents. It will deliver a broad array of products for access and metro-optical network applications, with employees operating in 15 countries around the globe.