Covad Announces Proposed Follow-on Equity Offering.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 1, 1999--

Covad Communications Group, Inc. (Nasdaq:COVD) announces it intends to register and sell approximately 13 million shares of Common Stock.

The Company expects that the substantial majority of the offering will consist of primary shares to be sold by Covad, with the small remaining portion of the offering to consist of shares to be sold by Company management. In addition, the Company will grant an option for approximately 1.95 million shares to cover over-allotments.

The Company intends to principally use the proceeds of the offering to fund capital expenditures and related development and marketing expenses for network expansion into new geographies. The Company anticipates filing a Registration Statement with the SEC relating to this offering within the next 30 days.

These securities may not be sold nor may offers to buy be accepted prior to the time the Registration Statement becomes effective, and the offering will only be made by means of a prospectus. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.