Covad 2000 Financials to be Reported and 10-K Filed the Week of May 7; Covad Receives Nasdaq Delisting Letter.

Business Editors

SANTA CLARA, Calif.--(BUSINESS WIRE)--April 23, 2001

Covad Communications (Nasdaq:COVD), the leading national broadband services provider utilizing DSL (Digital Subscriber Line) technology, announced that it has received a standard notice of delisting by Nasdaq because Covad has not filed its Form 10-K for the period ending December 31, 2000, as required by Marketplace Rule 4310(c)(14). Covad will request a hearing with Nasdaq regarding its stock listing status this week and Nasdaq will then determine the hearing date. Covad stock will continue to trade on the Nasdaq National Market pending final decision of the Nasdaq Listing Qualifications Panel.

Covad also announced that it currently expects to file its SEC Form 10-K and full 2000 results the week of May 7, 2001, which the company currently believes will be before the NASDAQ delisting hearing would occur.

"Because of the accounting complexities caused by the rapid growth in our business, and the financial difficulties experienced by some of our ISP partners in 2000, Covad has chosen to announce its 2000 financial results at the same time it files its Form 10-K," said Chuck McMinn, Covad chairman. "We are taking the extra time that is necessary for a full review of previously discussed issues. Taking this time will help ensure confidence in our financials and accounting methods in the investment community while we continue to successfully provide an expanding suite of broadband services to grow our customer community."

About Covad Communications

Covad is the leading national broadband services provider of high-speed Internet and network access utilizing Digital Subscriber Line (DSL) technology. It offers DSL, IP and dial-up services through Internet Service Providers, telecommunications carriers, enterprises, affinity groups, PC OEMs and ASPs to small and medium-sized businesses and home users. Covad services are currently available across the United States in 109 of the top Metropolitan Statistical Areas (MSAs). Covad's network currently covers more than 40 million homes and business and reaches approximately 40 to 45 percent of all US homes and businesses. Corporate headquarters is located at 4250 Burton Drive, Santa Clara, CA 95054. Telephone: 1-888-GO-COVAD. Web Site: www.covad.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 The statements contained in this press release that are not historical facts are "forward-looking statements," including statements concerning the reporting of Covad's financial results, the Company's ability to migrate end users of distressed ISPs, plans to expand its network, market opportunities, the cost, timing and scope of the deployment of Covad's network and launching of its services, implementation of line sharing and self-installation, anticipated capital expenditures, revenues, EBITDA results, expense reductions and other operating results, success of strategic relationships, and the statements made by the chairman in this release. Actual events or results may differ materially as a result of risks facing Covad or actual results differing from the assumptions underlying such statements. Such risks and assumptions include, but are not limited to, Covad's ability to successfully market its services to current and new customers, the consolidation of sales to a fewer number of wholesale customers, Covad's ability to generate customer demand, to achieve acceptable pricing, to respond to increasing competition, to manage growth, to receive timely payment from our Internet service providers and other customers, to access regions and negotiate suitable interconnection agreements, all in a timely manner, at reasonable costs and on satisfactory terms and conditions, as well as regulatory, legislative, and judicial developments. All forward-looking statements are expressly qualified in their entirety by the "Risk Factors" and other cautionary statements included in Covad's SEC filings.