United Online, Inc. (Nasdaq:UNTD), a leading provider of consumer Internet and media services, and Covad Communications Group, Inc. (AMEX:DVW), a leading national provider of integrated voice and data communications, today announced an agreement through which United Online will expand its NetZero DSL broadband Internet service offering using Covad's network. United Online recently launched NetZero Digital Subscriber Line (DSL) broadband Internet service to provide its customers with an opportunity to upgrade to broadband. Covad operates the nation's largest facilities-based network and provides partners such as United Online with a broad portfolio of broadband services.
"Through this agreement, United Online has the opportunity to benefit from access to Covad's network and their expertise in broadband," said Mark R. Goldston, Chairman and CEO of United Online. "We believe it will enable us to expand our NetZero DSL broadband offering and give more of our NetZero customers who want a broadband experience the ability to easily upgrade from dial-up while keeping their NetZero email address."
"We are pleased to partner with United Online to provide its customers with high-speed Internet service and look forward to creating a successful partnership," said Charles Hoffman, president and chief executive officer of Covad. "As the leading independent provider of next-generation broadband services, we welcome the opportunity to increase our wholesale business through this agreement."
United Online intends to launch this expansion of its NetZero DSL broadband Internet service near the end of the first quarter of 2007. In addition to NetZero's current regional DSL coverage, this agreement with Covad allows United Online to offer NetZero broadband services to DSL-eligible customers within Covad's service area. United Online currently estimates that, following the addition of NetZero DSL services in Covad's service area and when combined with NetZero's existing coverage, NetZero will be able to offer broadband services to approximately 30% to 35% of United Online's current ISP customer base, although the percentage could vary significantly based on a variety of factors. The pricing and other terms of services will be made available closer to the time of launch and may vary based on geographic locations.
About United Online
United Online, Inc. (Nasdaq:UNTD) is a leading provider of consumer Internet and media services. The company's Content & Media services include social networking (Classmates) and online loyalty marketing (MyPoints) and Communications services include Internet access (NetZero, Juno), email and VoIP. United Online is headquartered in Woodland Hills, CA, with offices in New York City, NY; Renton, WA; San Francisco, CA; Schaumburg, IL; Orem, UT; Erlangen, Germany; and Hyderabad, India. For more information about United Online, please visit http://www.untd.com.
About Covad
Covad is a leading nationwide provider of broadband voice and data communications. The company offers DSL, Voice over IP, T1, Web hosting, managed security, IP and dial-up, broadband wireless, 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<http://www.covad.com/>.
Cautionary Information Regarding Forward-Looking Statements
This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These include, but are not limited to, statements regarding the timing when the services will be available, the scope of the territory in which the services will be offered, the percentage of United Online's current ISP customers who will be offered broadband services and the success of the offering. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance. These statements are based on the current expectations or beliefs of the applicable company, as well as on assumptions concerning future events made by management, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The potential risks and uncertainties include, among others, the impact of increasing competition, pricing pressures, delays, inaccurate assumptions, and technological, performance and other risks associated with introducing and commercializing a new service in new areas. More information about potential factors that could affect the business and financial results of United Online and Covad, respectively, is included in the Forms 10-K and 10-Q and other filings made by each of the companies with the Securities and Exchange Commission (http://www.sec.gov/) including (without limitation) information under the captions "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors." United Online and Covad disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Note to Editors: United Online is a registered trademark of United Online, Inc. The names of other companies, products and services used herein are for identification purposes only and may be trademarks of their respective owners.
