Efficient Networks and Covad Announce Financial Transaction; Covad Buys $5 Million Convertible Note from Efficient.DALLAS--(BUSINESS WIRE)--June 30, 1999-- Efficient Networks Inc., today announced an expansion of its relationship with Covad Communications (Nasdaq:COVD COVD College of Optometrists in Vision Development COVD Covad Communications Group (stock symbol) ), intended to strengthen the existing ties between the two companies while further advancing Digital Subscriber Line See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and (DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary ) products and services as a preferred method for remote access among businesses and consumers. As part of the enhanced relationship, Covad purchased a $5 million promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. from Efficient Networks that will convert into common stock upon an initial public offering by Efficient. Efficient Networks will continue to supply Covad with DSL customer premises equipment See CPE. (CPE (Customer Premises Equipment) Communications equipment that resides on the customer's premises. CPE - Customer Premises Equipment ) bridges. Efficient will offer DSL routers, modems, bridges and additional CPE products intended to foster rapid delivery of commercial and consumer DSL services. Covad and Efficient will also collaborate on the development and marketing of next-generation DSL CPE intended to meet emerging requirements from businesses and consumers for new broadband services and applications. "The investment Covad has made in Efficient represents a validation of the rising success and growth of the DSL market," said Greg Langdon, vice president of marketing at Efficient Networks. "Efficient and Covad share a common vision of building upon our early success in DSL, and of continuing to pursue the full potential of broadband access See broadband and wireless broadband. for both commercial and individual users." "Our mutual customers will reap the benefits of this collaboration between Covad and Efficient," said Robert Roblin, Covad's executive vice president of marketing. "We're cementing our relationship with Efficient to advance our common goal of streamlining the process for rolling out DSL services today, while also forming a Covad/Efficient team to work closely on the development of next generation broadband services and equipment." About Efficient Networks Efficient Networks Inc. is a leading, independent supplier of DSL voice and data access products to the worldwide data and telecommunications markets. The company's SpeedStream customer premises product line includes a suite of external and internal routers and modems all designed for simple, rapid installation and seamless compatibility. As a recognized worldwide leader in ATM/DSL market, Efficient Networks is a member of the ATM Forum, the ADSL See DSL. ADSL - Asymmetric Digital Subscriber Line Forum and the Universal ADSL Working Group. With headquarters in Dallas, Efficient Networks also has offices in Amsterdam, Atlanta, Chicago, northern California, Singapore, and Virginia. For more information, see Efficient's World Wide Web home page at www.efficient.com. Note to Editors: Efficient Networks and its logos are registered trademarks and SpeedStream is a trademark of Efficient Networks Inc. All other names may be trademarks, services or registered trademarks of their respective vendors. |
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