Zhone's iMARC products sold to Verso

JANUARY 4, 2006 -- Zhone Technologies Inc. (search for Zhone) has sold its iMARC products, a part of its legacy product portfolio, to Verso Technologies, Inc. as of December 29, 2006.

Mory Ejabat, chairman and CEO of Zhone, said, "We are pleased that Verso has chosen to include the iMARC products in its family of telecommunications products. With this transaction, our customers benefit from continued sales of these products as well as from Verso's experience in servicing these types of products."

The iMARC products are a family of Frame Relay, ATM, and IP service units, in-line monitors, and branch office routers. These products provide intelligent demarcation between service provider and end-user networks in a completely standards-based package.

Under the terms of this agreement, Zhone will receive $2.5 million in exchange for the iMARC business, equipment, and liabilities associated with the business plus additional consideration for the value of inventory remaining at the end of six months. Zhone will also continue to manufacture the products and provide certain other services for Verso for a period of up to six months, enabling Verso to make a smooth customer transition.

Visit Zhone Technologies