Vodavi Announces Agreement with Covad to Provide New Hosted VoIP Phones for the Very Small Market

Business Wire, March 23, 2006

PHOENIX -- Vodavi Technology Inc. (NASDAQ: VTEK) today announced it will provide Covad Communications (AMEX: DVW), a leading provider of integrated voice and data communications, multiple new phone models designed for the Very Small Business (VSB) and Small Business (SB) VoIP marketplace. The phones will be manufactured by LG-Nortel Co. Ltd., Vodavi's strategic partner and largest shareholder. Vodavi will provide sales and support to Covad. The agreement will expand the range of options available to new and current Covad customers.

The 6800 Series phones employ the internationally recognized standard protocols, MGCP and SIP. They operate seamlessly with Covad vPBX service to access productivity-enhancing features like "find me/follow me," call logs, and contact lists. Prior to Covad's introduction of the 6800 Series phones, small businesses lacked a variety of cost-effective alternatives. Today, VSBs and SBs can implement the productivity advantages of VoIP with minimal up front costs, making total telecom savings even greater.

"Our goal is to transform business communications through cost-effective technology solutions," said Prakash Nagpal, director, product strategy, at Covad. "The 6800 Series is a welcome addition to our hassle-free VoIP service for small businesses and is yet another step in providing our customers with the flexibility they're looking for in a managed IP environment."

"We're pleased to supply reliable and affordable equipment to Covad customers," said Greg Roeper, president & CEO of Vodavi Technology Inc. "We look forward to doing our part to ensure that Covad customers enjoy the full range of VoIP services as made available through the 6800 Series of IP Terminals."

About Vodavi

Vodavi Technology Inc. is an advanced communications solutions provider delivering innovative business communications solutions that help small to large enterprises increase productivity and reduce costs. Vodavi's full range of communications solutions include traditional telephone systems, Voice-over-IP (VoIP) technology and converged communications solutions that allow enterprises to deploy traditional digital or VoIP communications simultaneously, providing a flexible and cost-effective migration path to new technology. The company is headquartered in Phoenix. For more information on Vodavi, visit www.vodavi.com.

About LG-Nortel

LG-Nortel Co. Ltd. is a Joint Venture of LG Electronics Inc. (Korea) and Nortel Networks Corp. (Canada). LG-Nortel specializes in developing and marketing telecommunications equipment and network solutions.