WASHINGTON -- Covad Communications Group, Inc. (AMEX:DVW), a leading national provider of integrated voice and data communications, has announced a strategic partnership with VGE (Venture Group Enterprises), a full-service sales and marketing agent support organization specializing in telecommunications. The deal, which was announced today at the 2006 Channel Partners Conference & Expo in Washington D.C., enables VGE's multi-tiered network of distribution partners to sell Covad's Voice over IP and broadband solutions to small businesses.

"Covad is excited to partner with VGE to grow our revenue in the $30 billion small business telecommunications market," said David McMorrow, Covad's executive vice president of sales. "This partnership brings Covad new and direct access to small businesses through VGE's well-positioned and high-quality back office agent support, account base maintenance, reporting, and sales support. The result is the strengthening of Covad's already successful strategy to reach business customers."

Covad will work with VGE as a strategic partner to help phone vendors, VAR's, and integrators utilize VGE's resources to sell Covad services. Such agents may choose to sell to end customers directly or refer potential customers to VGE's direct sales personnel. In addition, VGE offers master agents, web marketing agents and other companies marketing telecommunications services an easy to use automated web based platform to quote, provision, review order status and reconcile commissions.

"Covad's partnership validates the solid channels we provide. Covad now has access to more than 300 master agents and more than 6000 sales agents through VGE," said Doug Turpin, president of VGE. "Covad's national network, portfolio of business-class voice and data solutions, professional, technical and sales expertise, and singular focus on the small business customer all combine to make Covad a leader in the industry."

Covad Communications Inc.