Covad Announces First Quarter 2002 Operating Statistics; Cash Usage Below $45 Million for the Quarter; 359,000 Lines in Service.

Business Editors

SANTA CLARA, Calif.--(BUSINESS WIRE)--April 18, 2002

Covad Communications (OTCBB:COVD), the leading national broadband services provider utilizing DSL (Digital Subscriber Line) technology, today announced first quarter 2002 operating statistics as of March 31, 2002.

-- For the first quarter, cash usage was under $45 million for the quarter,
ahead of previous guidance.

-- The cash balance as of March 31, 2002 was approximately $255 million.

-- Covad has approximately 359,000 lines in service on its network, a two
percent increase from December 31, 2001.

-- Covad's wholesale channel represents 93 percent of Covad's total lines while
its direct channel represents seven percent. The mix at the end of 2001 was 96
percent for the wholesale channel and four percent for the direct channel.

-- Approximately 50 percent of Covad's total lines are business-class lines and
50 percent are consumer-class lines at the end of the first quarter, compared
to 52 percent and 48 percent for the fourth quarter of 2001.

-- Lines served through resellers for whom Covad recognizes revenue only when
it is paid was 13 percent as of March 31, 2002, unchanged from the previous
quarter.

-- Covad's average installation time during the first quarter, for completed
orders, averaged less than 20 days for its business-class services. For
self-install consumer-class services, average connectivity time was less than
10 days. These are both improvements over the previous quarter of 23 days for
business and 11 days for consumer.

"We are ahead of our plans for improvements in cash usage and EBITDA," said Charles E. Hoffman, Covad CEO and president. "This is the first quarter that we will fully realize all of our cost reduction efforts from 2001. Our goal is to get to profitability as quickly as possible and we have the right financial structure in place to get there. We will continue to manage the size of our network based on economically responsible opportunities. We are focused on growing our subscriber base through our direct channel and through our wholesale partners."

About Covad Communications

Covad is the leading national broadband service provider of high-speed Internet and network access utilizing Digital Subscriber Line (DSL) technology. It offers DSL, T1, managed security, IP and dial-up services directly through Covad and through Internet Service Providers, value-added resellers, telecommunications carriers and affinity groups to small and medium-sized businesses and home users. Covad services are currently available across the United States in 94 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 U.S. homes and businesses. Corporate headquarters is located at 3420 Central Expressway, Santa Clara, CA 95051. 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 Covad's anticipated reduction of costs, ability to become profitable, sufficiency of Covad's cash on hand, additional capital requirements, and the statements made by the president and CEO 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 raise additional capital and address its financial issues, to continue as a going concern, to continue to service and support its customers, to successfully market its services to current and new customers, to manage the consolidation of sales to a fewer number of wholesale customers, to successfully migrate end users, Covad's ability to generate customer demand, to achieve acceptable pricing, to respond to competition, to develop and maintain strategic relationships, to manage growth, to receive timely payment from 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 and the absence of an adverse result in litigation against Covad. All forward-looking statements are expressly qualified in their entirety by the "Risk Factors" and other cautionary statements included in Covad's SEC Annual Report on Form 10-K for the year ended December 31, 2001.