COVAD DEPLOYS AUTOMATED ORDERING IN PACBELL TERRITORY.

Covad Communications (Nasdaq:COVD), a national broadband services provider of high-speed Internet and network access utilizing Digital Subscriber Line (DSL) technology, has deployed the first completely automated loop ordering process between a nationwide DSL broadband service provider and a local phone company.

Covad and Pacific Bell worked together to implement and deploy an automated loop ordering process throughout Pacific Bell's entire region. The electronic bonding speeds-up and simplifies the loop ordering process, enabling residential and business users to get Covad DSL installed at a much faster rate.

"Automating the ordering process enables Covad to continue accelerating installation rates and better fulfill the tremendous demand for our broadband services," said Robert Roblin, executive vice president of sales and marketing for Covad. "Pacific Bell is the first phone company to implement this automated system with us. It provides a faster and more cost effective process that benefits everyone involved, and we look forward to other phone companies following Pacific Bell's lead."

Electronic bonding simplifies DSL deployment by enabling automated flow-through between Covad, Internet Service Providers (ISPs), and supporting phone companies. Prior to automation, Pacific Bell manually processed all Covad loop orders, which resulted in increased loop order processing costs and delayed installation. Today, with Pacific Bell's participation and support of the automated system, Covad and its customers are experiencing the following benefits:

-- 25 percent decrease in average installation time

-- 50 percent reduction in average loop order administration costs as human intervention is unnecessary

-- 70 percent reduction in average loop order costs paid to Pacific Bell

-- 90 percent reduction in the average time it takes to get a confirmation from Pacific Bell to deliver a loop

The automated solution is advantageous for Covad and supporting phone companies, as well as Covad's ISPs and their Covad DSL subscribers. The solution enables ISPs to pre-qualify, order, and provision Covad DSL services for subscribers in a fully automated fashion. Once a subscriber places an online order, the order is fulfilled without human intervention all the way through provisioning the circuit on the network and ordering the loop with the phone company. The process is completely transparent to the subscriber and translates into faster service qualification, quicker installation and reduced costs.

The automated solution is based on Covad's open and flexible xLink (pronounced "cross link") platform, an XML (Extensible Markup Language) based application programming interface (API). Covad's xLink platform allows phone companies, ISPs and other Covad channels to leverage Covad's industry leading flow-through provisioning system. The platform makes it easier for ISPs to add DSL services to their product portfolios, simplifies the overall process of DSL ordering, and improves the overall scalability of DSL deployment.

About Covad

Covad Communications is the leading national broadband services provider of high-speed Internet and network access utilizing Digital Subscriber Line (DSL) technology. It offers DSL services through Internet Service Providers, telecommunications carriers, enterprises, PC OEMs and ASPs to small and medium-sized businesses and home users. Covad services are currently available across the United States in 56 of the top Metropolitan Statistical Areas (MSAs) and will be available in 100 MSAs by the end of 2000.

At that time, Covad's network will reach more than 40 percent of all U.S. homes and 45 percent of all US businesses. Covad Communications and its affiliates, doing business as Covad Communications Company, are wholly owned subsidiaries of Covad Communications Group, Inc. (Nasdaq:COVD).

Corporate headquarters is located at 2330 Central Expressway, Santa Clara, CA 95050. For more information call 888-GO-COVAD or 408/855-7299.