Vonage and Covad Communications Announce Strategic Relationship to Deliver Vonage Broadband

HOLMDEL, N.J. and SAN JOSE, Calif., May 8 /PRNewswire-FirstCall/ --
Vonage, a leading provider of digital phone services, and Covad
Communications Company, a leading national provider of integrated voice and
data communications, today announced a strategic relationship which will
enable Vonage to provide its customers with a broadband solution using
Covad's nationwide DSL network.

The new service, called Vonage Broadband, is expected to be offered to
new and existing customers by the end of the year. Through this
relationship with Covad, Vonage will offer DSL services with maximum
download speeds of 3.0 or 6.0 megabits per second to both residential and
small business customers. This offering will expand Vonage's competitive
position in the marketplace by integrating these services for customers who
prefer this option.

"Consistent with our strategy of focusing on the customer, Vonage
Broadband enables us to respond to the demand we hear from customers who
prefer the Vonage brand," said Jeffrey Citron, Chairman, Chief Strategist,
and Interim CEO. "In addition, it provides us with a competitive offering
that continues to give customers the freedom of choice."

Broadband fits perfectly into the MyVonage portfolio of products and
services, such as Vonage Visual Voicemail(R), Unlimited International Long
Distance Calling and V-Portal(TM), which enable customers to control not
only the way they communicate, but now, the way they bundle.

"We look forward to partnering with Vonage as its broadband wholesale
service provider," said Patrick Bennett, Covad President and Chief
Executive Officer. "This new strategic relationship enables us to
demonstrate the reliability and award-winning performance of our nationwide
broadband network to Vonage's large and savvy customer base."

Vonage will be hosting an Earnings call today at 10:00 AM and will
discuss the relationship in further detail. To participate, please dial
(877) 419-6594 approximately ten minutes prior to the call. International
callers should dial (719) 325-4932.

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About Vonage

Vonage (NYSE: VG) is a leading provider of digital phone services with
over 2.6 million subscriber lines. Our award-winning technology enables
anyone to make and receive phone calls with a touch tone telephone almost
anywhere a broadband Internet connection is available. We offer
feature-rich and cost-effective communication services that offer users an
experience similar to traditional telephone services.

Our Residential Premium Unlimited and Small Business Unlimited calling
plans offer consumers unlimited local and long distance calling, and
popular features like call waiting, call forwarding and voicemail -- for
one low, flat monthly rate. Vonage's service is sold on the web and through
national retailers including Best Buy, Circuit City, Wal-Mart Stores Inc.
and Target and is available to customers in the U.S., Canada and the United
Kingdom. For more information about Vonage's products and services, please
visit http://www.vonage.com.

Vonage Holdings Corp. is headquartered in Holmdel, New Jersey.
Vonage(R) is a registered trademark of Vonage Marketing Inc., a subsidiary
of Vonage Holdings Corp.

About Covad

Covad is a leading nationwide provider of integrated voice and data
communications. The company offers DSL, Voice Over IP, T1, broadband
wireless, Web hosting, managed security, IP and dial-up, and bundled voice
and data services directly through Covad's network and through Internet
Service Providers, value-added resellers, telecommunications carriers and
affinity groups to small and medium-sized businesses and home users. Covad
broadband services are currently available across the nation in 44 states
and 235 Metropolitan Statistical Areas (MSAs) and can be purchased by more
than 57 million homes and businesses, which represent over 50 percent of
all US homes and businesses. Corporate headquarters is located at 110 Rio
Robles San Jose, CA 95134. Telephone: 1-888-GO-COVAD. Web Site:
http://www.covad.com.

Safe Harbor Statement

This press release contains forward-looking statements regarding the
Company's future offering of a wholesaled DSL solution. The forward-looking
statements in this release are based on information available at the time
the statements are made and/or management's belief as of that time with
respect to future events and involve risks and uncertainties that could
cause actual results and outcomes to be materially different. Important
factors include, but are not limited to, our ability to consummate a
proposed financing, our damaging and disruptive intellectual property and
other litigation; our convertible notes, which can be put to us in December
2008; our rate of customer terminations; our history of net operating
losses and our need for cash to finance our growth; the competition we
face; our reliance on third parties to provide portions of our service; our
dependence on our customers' existing broadband connections; differences
between our service and traditional phone services, including our 911
service; uncertainties relating to regulation of VoIP services; system
disruptions or flaws in our technology; the risk that VoIP does not gain
broader acceptance; and other factors that are set forth in the "Risk
Factors" section, the "Legal Proceedings" section, the "Management's
Discussion and Analysis of Results of Operations and Financial Condition"
section and other sections of Vonage's Annual Report on Form 10-K for the
year ended December 31, 2007, as well as in our Quarterly Reports on Form
10-Q and Current Reports on Form 8-K. While the Company may elect to update
forward-looking statements at some point in the future, it specifically
disclaims any obligation to do so, and therefore, you should not rely on
these forward- looking statements as representing our views as of any date
subsequent to today.

SOURCE Vonage