Covad Adds More Than 580 New Business Customers for Managed IP Communications Service Based on Cisco Solutions; Leading Managed Services Provider Driving Explosive Growth of Cisco Powered Network Designated Offering

Business Wire, March 20, 2006

SAN DIEGO -- Cisco Systems(R) (NASDAQ:CSCO) announced today that Covad Communications Group Inc. (AMEX:DVW) a leading national provider of integrated voice and data communications, is driving rapid growth of managed, business-class IP Communications services, based on Cisco solutions. More than 580 new business customers subscribed to the services in 2005.

"Managed IP communications services are increasingly attractive to our business users due to the enhanced productivity and cost reduction they offer," said Claude Tolbert, Covad's senior vice president, Product Solutions, Planning and Priorities. "Working with Cisco to develop and promote our vPBX and PBXi Plus services, we have increased both our revenues and customer retention. With such results, it's easy to see why we are pleased to be a part of the Cisco Powered Network Program."

Covad managed IP Communications services offer small businesses the following advantages:

--Reduced costs by combining telecom and broadband services

--Easy-to-use, Web-based communications management

--Streamlined billing, with a one-vendor, one-bill service

--Automated feature updates, making upgrades unnecessary

--The added confidence that comes with using a Cisco Powered Network

Covad's business-class VoIP services, vPBX and PBXi Plus, are Cisco Powered Network designated services that feature Cisco Integrated Service Routers (ISRs), Integrated Access Devices (IADs), intelligent Catalyst Series switches and Cisco IP Phones at the customer premises. The services are delivered over a converged IP and ATM backbone with high-capacity Cisco ATM switches in the core, Cisco 7600 Series routers at the edge and AS 5350s for public switched telephone network (PSTN) access.

"Leading providers like Covad are driving the next wave of advanced services, offering technology and services that drive enhanced productivity and cost reduction to their customers." said Kirt Jorgenson, Director of the Cisco Powered Network program at Cisco. "Ultimately, managed services are a clear win for all parties involved. Managed services like Covad's vPBX and PBXi Plus generate incremental revenue for the provider and improve customer retention due to increased satisfaction."

Cisco Network Optimization Support from the Cisco Lifecycle Services portfolio provides Covad with Cisco engineers, tools, best practices and intellectual property for in-depth operational and engineering support across the multiple network environments and technologies in Covad's end-to-end managed VoIP offerings.

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