Covad, Verizon and MCI Announce a New Relationship

Covad (www.covad.com) and Verizon (www.verizon.com) announced a comprehensive settlement agreement that resolves all pending litigation and disputes between them.

The agreement includes the dismissal of both Covad's pending antitrust case against Verizon, and a separate suit that Verizon had filed against Covad. The settlement provides a full resolution to all billing disputes.

A related agreement also expands Covad's existing commercial line sharing agreement to enable Covad to provide its xDSL services over lines being used by resellers of Verizon's voice services. "We are pleased to be able to expand our existing wholesale relationship with this highly valued customer," said Virginia Ruesterholz, Verizon's President - Wholesale Markets.

Separately, Covad and MCI entered into an agreement under which Covad will be a preferred provider of local access and network services to MCI's DSL business customers.

"These agreements build a new, positive relationship with Verizon," said Charles Hoffman, Covad president and CEO. "MCI has been a valued customer and vendor to Covad for many years. The agreements we are announcing today provide an exciting opportunity to grow our business with the combined companies upon closing of the MCI acquisition. MCI has a substantial customer base outside of Verizon's local footprint."

"We look forward to a continuing relationship with Covad as a valued supplier and customer to MCI" said Randal Milch, Senior Vice President and Deputy General Counsel of Verizon. "We are also pleased to begin this new chapter in the Covad-Verizon relationship."