SAN JOSE, Calif. -- Covad Communications Group, Inc. (OTCBB: COVD - News), a leading nationwide provider of integrated voice and data services, today announced Covad VoIP PBXi Voice Service, a business-class Voice over Internet Protocol (VoIP) service that leverages existing on-premises phone equipment while providing significantly lower operating costs.

According to IDC, approximately 85 percent of small- and medium-sized businesses have invested in on-premises phone systems in order to support their growing employee base and expanding telecommunication needs. Covad VoIP PBXi Voice Service enables businesses to utilize their existing on-premises telephone system and gain significant cost advantages VoIP provides. By protecting their Private Branch Exchange (PBX) or key system investment, businesses have no up-front capital expenses to integrate Covad VoIP PBXi Voice Service.

"While a fully managed VoIP service may be ideal for many businesses, some business owners still want to retain their existing phone system and reduce their telecom operating expense by up to 25 percent," said Jeff Ahlquist, vice president, corporate development for Covad. "For those businesses, Covad VoIP PBXi Voice Service is an ideal fit. It allows them to retain their equipment investment, reduces monthly fees and positions them to easily adopt next-generation VoIP once they are ready."

Covad Communications Inc.