VONAGE AND COVAD COMMUNICATIONS ANNOUNCE STRATEGIC RELATIONSHIP TO DELIVER VONAGE BROADBAND

Holmdel, NJ, and San Jose, CA (May 8, 2008) – 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 a DSL service with a maximum download speed of between 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, Unlimited International Long Distance Calling and VPortal,
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 awardwinning
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.
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:
www.covad.com.
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 www.vonage.com.
Vonage Holdings Corp. is headquartered in Holmdel, New Jersey. Vonage® is a
registered trademark of Vonage Marketing Inc., a subsidiary of Vonage Holdings
Corp.
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.