EarthLink and Covad Announce Market Trial of Innovative Bundle of Phone Services and High-Speed Internet [June 6, 2005]

SAN JOSE, Calif. & ATLANTA, Jun 06, 2005 (BUSINESS WIRE) -- Covad (COVD) and EarthLink (ELNK), the nation's next generation Internet Service Provider, today announced a new Voice over IP (VoIP) joint market trial that will give EarthLink the ability to offer its customers low-cost phone services along with high-speed Internet access. The three-market trial is slated to begin in October in Dallas, TX, San Francisco and San Jose, CA, and Seattle, WA.

The new service, made possible through Covad line-powered voice access, is designed to provide an affordable alternative to the local phone companies. Customers will be able to sign up for local and long distance phone service and high-speed Internet access using their existing phones, wiring and computer equipment. Just like traditional phone service, EarthLink's voice services will operate during a power outage, support enhanced 911 calling and offer custom calling features.

"Our customers are looking to us for an expanded portfolio of low-cost, high quality voice and data products to meet their growing communications needs," said Steve Howe, EarthLink vice president of voice. "Partnering with Covad on a market trial of this scale builds upon our existing voice strategy and better positions us to deliver an exciting package of voice and data services."

"This new combined phone and high-speed Internet service opens up a major new market opportunity for Covad and EarthLink," said Andrew Lockwood, Covad executive vice president-strategic development. "Together we have created a compelling service which we believe will be very attractive to a large number of customers. Best of all, through strengthening our strategic partnership both Covad and EarthLink are better able to deliver on the commitment to keep our customers a step ahead by offering innovative products and services such as this."

Covad's line-powered voice access marries the "last mile" of traditional telephone copper wiring with the advanced features of VoIP by taking advantage of the next-generation Digital Subscriber Line Access Multiplexer (DSLAM) technology that will enable Covad to offer higher-speed broadband access (ADSL 2+, G.SHDSL) and new business-class services such as metro Ethernet and bonded T1.

EarthLink customers will enjoy high quality service because their calls will be delivered over Covad's and EarthLink's managed national networks rather than the public Internet. Subscribers will also receive EarthLink's award-winning customer service and Internet tools and services like spamBlocker, VirusBlocker(TM) and Spyware Blocker(TM).

EarthLink is funding the trial through a prepayment for future Covad services. EarthLink will provide all sales and marketing support.

About Covad
Covad is a leading nationwide provider of broadband 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. Covad broadband services are currently available across the nation in 44 states and 235 Metropolitan Statistical Areas (MSAs) and can be purchased by more than 57 million homes and businesses, which represent over 50 percent of all US homes and businesses. Corporate headquarters is located at 110 Rio Robles San Jose, CA 95134. Telephone: 1-888-GO-COVAD. Web Site: www.covad.com.

About EarthLink
"EarthLink. We revolve around you(TM)." As the nation's next generation Internet service provider, Atlanta-based EarthLink has earned an award-winning reputation for outstanding customer service and its suite of online products and services. According to the J.D. Power and Associates 2004 Internet Service Provider Residential Customer Satisfaction Study(SM), EarthLink is ranked highest in customer satisfaction among high-speed and dial up Internet Service Providers. Serving over five million subscribers, EarthLink offers what every user should expect from their Internet experience: high-quality connectivity, minimal online intrusions, and customizable features. Whether it's dial-up, high-speed, Web hosting, wireless voice and data services, or "EarthLink Extras" like home networking, security or voice over IP, EarthLink provides the tools that best let individuals use and enjoy the Internet on their own terms. Learn more about EarthLink by calling (800) EARTHLINK or visiting EarthLink's Web site at www.earthlink.net.

Covad and EarthLink Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

The foregoing contains "forward-looking statements" which are based on management's current information and beliefs as well as on a number of assumptions concerning future events made by management. Examples of forward-looking statements include the expected features, performance and customer acceptance of the line powered voice service. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside the company's control that could cause actual results to differ materially from such statements. These risk factors include the ability to deploy line powered voice service in a timely manner, the impact of increasing competition, pricing pressures, consolidation in the telecommunications industry, and uncertainty in telecommunications regulations and changes in technologies, among other risks. For a more detailed description of the risk factors that could cause such a difference, please see the company's filings with the Securities and Exchange Commission. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of the company.

SOURCE: Covad