Birch Telecom Chooses Covad's Voice Optimized Access to Power its Voice over DSL Services.

SAN JOSE, Calif. -- Covad Communications Group, Inc. (AMEX:DVW), a leading national provider of integrated voice and data communications, and Birch Telecom, Inc. today announced a strategic partnership to migrate Birch's dedicated business DSL customers onto Covad's network. Birch Telecom, a telecommunications company offering service to twelve states in the Midwest and Southeast, will continue to operate its local and Internet network, partnering with Covad for last-mile DSL distribution.

"Serving Birch's high-value business customers underscores Covad's continued strategy to partner with companies that provide business-class services and to maintain our position as an alternative to the phone company in the business telecommunications marketplace," said David McMorrow, executive vice president of sales & marketing for Covad. "Voice Optimized Access (VOA) is yet another example of Covad's ability to innovate and enable partners like Birch."

"We chose Covad because they are a premier provider of DSL services. Covad's innovative Voice-Optimized Access product, combined with Birch's superior switching network and robust suite of applications, ensures that our customers will have a quality experience," said Allan Samson, vice president of product marketing for Birch Telecom. "The Covad partnership allows us to continue our focus on providing reliable products with excellent customer support and value-added services."

The implementation will begin immediately. Birch will maintain its relationship with the end customers who will now be served through Covad's network.

About Covad

Covad is a leading nationwide provider of integrated voice and data communications. The company offers DSL, Voice Over IP, T1, 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 Birch Telecom

Targeting small- and mid-sized businesses, Birch Telecom serves 130,000 customers in more than 50 metropolitan markets across 12 states. Birch owns and operates an integrated voice and data network, and offers a broad portfolio of local, long distance and Internet services. For more information on Birch Telecom or for information on how you can sign up for local, long distance or Internet services, please call toll-free [phone] or visit the Company's Web site at www.birch.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

The foregoing contains "forward-looking statements" which are based on management's current information and beliefs as well as on a number of assumptions concerning future events made by management. Examples of forward-looking statements include expectations regarding Covad's provision of services to Birch Telecom's customers. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside Covad's control that could cause actual results to differ materially from such statements. These risk factors include the ability of Covad to efficiently migrate Birch Telecom's customers to Covad's network as well as potential changes in telecommunications regulations, among other risks. For a more detailed description of the risk factors that could cause such a difference, please see Covad's 10-K, 10-Q, 8-K and other filings with the Securities and Exchange Commission. Covad disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of Covad.