Covad VoIP Truly Integrates Telephone and High-Speed Internet Service

Covad Communications Group, Inc. (www.covad.com), a nationwide provider of broadband voice and data communications, announced the availability of business-class Covad VoIP (Voice over Internet Protocol) in 14 new markets: Austin, TX: Birmingham, AL: Burlington, NC; Dayton, OH; Grand Rapids, MI; Greensboro, NC: Holland, MI; Jacksonville, FL; New Orleans, LA; Ogden, UT; Orlando, FL; Provo, UT; Salt Lake City, UT, and San Antonio, TX.

"VoIP is the most significant alternative ever to traditional phone service, and Covad VoIP is a high quality, reliable communications service with features that, until now, have not been available at affordable prices for small businesses," said Charles Hoffman, president and chief executive officer of Covad.

Now launching nationwide, Covad VoIP is managed end-to-end, offering small and medium businesses an unparalleled suite of services and voice quality that businesses can rely on. Covad VoIP will be available in 125 major metropolitan markets nationwide which include more than 900 cities by the end of 2004.

Patrick Hurley, Director of Research at telecommunications research firm, TeleChoice, Inc., said: "When businesses are considering Voice over IP services they shouldn't expect today's consumer VoIP services to keep up with their needs. However, when a provider like Covad adds Voice over IP onto its nationwide broadband network, they can provide these business customers a truly integrated voice and data service that offers customers the quality and reliability they need."

Covad currently offers two VoIP products custom-tailored for small- to medium-sized businesses, and for enterprises needing a virtual Private Branch Exchange (PBX).

Covad vPBX features the Covad Dashboard, which brings an array of capabilities into one common Web-based user interface, including: local and long-distance services, visual fax and voice mail, Instant Messaging, audio and web conferencing, call logs, directory services, "Find me/Follow me", and other features, all managed from one place using one phone number.

Covad is a leading nationwide provider of integrated voice and data communications. The company offers DSL, Voice Over IP, T1, Web hosting, managed security, IP and dial-up, and bundled voice and data services directly through Covad's network and through Internet Service Providers, value-added resellers, telecommunications carriers and affinity groups to small and medium-sized businesses and home users.

The foregoing contains "forward-looking statements", such as the number of metropolitan areas where Covad VoIP will be available, which are based on management's current information and beliefs as well as on a number of assumptions concerning future events made by management.