San Jose, California – (The Hosting News) – November 6, 2006 – Web host and national provider of integrated voice and data communications firm, Covad Communications Group, Inc., has entered into an agreement to acquire most of the assets of DataFlo Communications, LLC, a Chicago-based broadband wireless provider.

The transaction with DataFlo is expected to close later this month and is subject to customary closing conditions and regulatory approvals. By expanding its presence in Chicago, Covad will add a sixth market to its broadband wireless coverage area, in an addressable market of over 170,000 small businesses. The acquisition of DataFlo also complements Covad’s existing broadband coverage area in the Chicago market, enabling the company to satisfy the data, voice, and, now wireless, needs of Chicago-area businesses. The addition of broadband wireless to Covad’s portfolio of services enables the company to target larger businesses with high-capacity service, with data speeds between 2 megabits per second and 45 megabits per second.

Patrick Bennett, Executive Vice President of Market Development for Covad remarked, ”Fixed broadband wireless service is one of Covad’s primary growth drivers and this announcement signals the next phase of our targeted national expansion. By acquiring DataFlo, we will gain a wireless coverage area in Chicago where there is strong small and medium-sized business growth. DataFlo’s wireless network also complements our existing wireline coverage area in that market. By introducing wireless in Chicago we will also be able to meet the needs of larger businesses with our high-capacity service.”

Covad now offers broadband wireless in 6 markets nationwide: Chicago, Los Angeles, San Francisco, San Diego, Orange County, and Las Vegas. Covad will acquire substantially all the assets of DataFlo for approximately $1.4 million in cash. For the full year 2006, DataFlo expects to generate approximately $1 million in revenue. In keeping with Covad’s profitability goals, the transaction is EBITDA accretive.

NextWeb, Covad’s wireless subsidiary, was recently named one of the ”Top US Broadband Wireless Operators” by Broadband Wireless Business magazine. NextWeb currently provides high-speed wireless broadband solutions to over 3500 businesses, including Intel, Hilton Hotels, and the 2006 Emmy Awards.

A nationwide provider of integrated voice and data communications, Covad offers DSL, Voice Over IP, T1, web hosting, managed security, IP and dial-up, wireless broadband, 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. According to the company, as the first company to commercially deploy DSL in the United States, Covad has spent hundreds of millions of dollars building a network that passes more than 57 million homes and businesses in 44 states – the largest nationwide footprint of any DSL company. Covad broadband services are currently available across the nation in 235 Metropolitan Statistical Areas (MSAs) which represent over 50 percent of all US homes and businesses. Corporate headquarters is located at 110 Rio Robles, San Jose, California 95134. Telephone: 1-888-GO-COVAD.

To learn more, please visit: www.covad.com.

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