Birch Communications Launches IP-based Network in Dallas-Ft. Worth Metro Area

MetaSwitch and Zhone Technologies Power Enhanced Service Offerings

Atlanta, GA – December 17, 2008 - Birch Communications announced today the successful launch of its new IP network serving the Dallas/Ft. Worth metro market. This new IP (Internet Protocol) network replaces the current digital network and will allow Birch to provide more features and flexibility to its Texas business customers.

Birch has already completed the deployment of IP-based networks in other major markets in Tennessee, Georgia, Mississippi and now, Texas. This most recent Texas deployment is one in a series of strategic steps the company has taken to migrate to an IP network in all of its markets. “Our goal is to deliver all of our products and services, including broadband Internet, T1, voice and data services over IP to all of our business customers. By utilizing secure, private IP technology, Birch is able to offer its customers unique bundled local voice and high speed Internet services, including T1 services at very attractive price points,” said Chris Aversano, Executive Vice President & COO of Birch Communications.

Birch’s IP technology partners are MetaSwitch and Zhone Technologies, recognized as premier, best-in-class IP equipment providers worldwide. “Our customers have extremely high expectations for Birch’s reliability, and the capabilities of the Birch network,” said Tom Stachowiak, Birch vice president of engineering. “That is why we chose the MetaSwitch distributed softswitch solution and Zhone (NASDAQ: ZHNE) VoIP edge distribution technologies. We have deployed MetaSwitch equipment in many other metro markets and are extremely pleased with its proven reliability and performance. The Zhone equipment has been deployed by over 600 operators, and its technology is also operating flawlessly in our network.”

"The Birch network strategy is a model for fast-growth service providers adapting to escalating demands for ultra high efficiency IP networks,” said Steven Glapa, Zhone’s vice president of product management and marketing. “By selecting Zhone’s multi-service access platform, Birch can provision higher profit, higher performance access services while cutting ownership costs by up to 50 percent.”

"Birch is bringing a truly valuable and differentiated offering to the Texas market," said David Ashby, vice president of sales at MetaSwitch. "Using the combination of our distributed next-generation architecture and broad IP-based application suite, together with Zhone's access technologies, Birch is taking a leadership role in delivering reliable, cost-effective and high-value services."

About Birch Communications
Headquartered in Atlanta GA, Birch Communications is one of the largest competitive local exchange carriers in its 31-state Southeast, Southwest and Midwest regions serving small and medium-sized business customers. Birch was the first in its class to deploy its own private IP network utilizing soft switch technology to deliver innovative, high quality, affordable voice and broadband communications services to small and medium-sized business customers. Please visit www.birch.com for more information.

Contact:
Allan Samson, Sr. Vice President and Chief Sales & Marketing Officer
allan.samson@birch.com
816.300.3421

About Metaswitch
MetaSwitch is an industry-leading vendor of switching and applications solutions for both packet and circuit-switched networks. Its MetaSphere applications suite enables a broad set of hosted IP communications services, while its core session control and media/signaling gateway products support a full range of Class 4/5 softswitch capabilities. Customers include many of the world’s leading operators of wireline, wireless and cable networks, with deployments that scale to millions of subscribers. For more information, please visit www.metaswitch.com.

About Zhone Technologies — Access for a Converging World
Zhone Technologies, Inc. (NASDAQ: ZHNE) is a global leader in multi-service access network (MSAN) solutions, serving more than 700 of the world's most innovative network operators. The company offers the industry's only 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.