Covad Trials Zhone for VOIP

SAN JOSE, Calif. -- Covad Communications Group, Inc. (OTCBB:COVD - News), a leading national provider of integrated voice and data communications, will begin trials in the next 30 days of line-powered voice access that would enable Covad strategic partners to offer local and long distance voice services to their customers in competition with the local telephone companies.

Line-powered voice access is made possible by next-generation Digital Subscriber Line Access Multiplexer (DSLAM) technology that enables fast deployment of new value-added services and provides the foundation for services in a next-generation broadband network. Nokia (NYSE:NOK - News) and Zhone Technologies (Nasdaq:ZHNE - News) are providing the new DSLAMs and voice cards to be used in the trials.

Line-powered voice access will offer an alternative to competitive local exchange carriers (CLECs) to transition lines off the Bell's UNE-P voice service platform and onto Covad's nationwide UNE-L network. Customers will have the potential to choose an alternative to the local phone company and receive basic local and long distance voice services, other Voice over Internet Protocol (VoIP)-enabled advanced services, and DSL bundles from competing brands. Line-powered voice access marries the usability of traditional phone service with the advanced features of VoIP, while allowing CLECs to leverage the cost efficiencies of VoIP in their networks. The trial will be conducted in the first half of 2005 in Atlanta, Denver and San Jose. Covad plans to offer the service commercially in the second half of 2005.

"Line-powered voice access will allow Covad to provide CLECs and their customers around the country a facilities-based alternative to the local phone companies' UNE-P platform for voice services," said Charles Hoffman, president and CEO of Covad Communications. "Covad's facilities-based nationwide network allows us to offer our partners a competitive edge by providing the ability to continue providing their customers an alternative to the local phone companies for voice and communications services."

Covad Communications Inc.

Nokia Corp.

Zhone Technologies Inc.