Covad Announces Strategic Alliance With Healtheon/WebMD as Part of Microsoft-led Group.

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 20, 1999--

Strategic Alliance Will Deliver High-Speed Multimedia Content and

Communications Services to Healtheon/WebMD Subscribers and Partners

Covad Communications (Nasdaq:COVD) today announced a strategic partnership with Healtheon/WebMD to provide broadband connectivity to its physicians, consumers and partners.

Covad, a leading broadband access company, will invest $15 million in Healtheon/WebMD, as a part of more than $360 million in strategic investments provided by a number of leading technology, consumer, and healthcare companies. Microsoft, who is making a $250 million equity commitment, is the leading investor among this group. Other investors include Excite, Inc., Intel Corporation, Softbank Corporation and Superior Consultant, each of which has a strategic operating agreement with Healtheon/WebMD.

Covad will become the preferred provider of broadband connectivity to Healtheon/WebMD physician subscribers for multimedia content and communications services. Both companies will implement co-marketing programs to offer Covad's Internet connection services with Healtheon/WebMD healthcare products and services, including online transactions, e-commerce and multimedia advertising.

It was announced earlier today that Healtheon and WebMD have agreed to merge to form Healtheon/WebMD. Healtheon/WebMD will be the first "end-to-end" Internet health care company connecting physicians, medical institutions, consumers and payers with comprehensive products and services for managing information, communications and transaction processing. Healtheon/WebMD brings together existing strategic relationships with more than 50 companies, including marketing partnerships with companies such as CNN, E-Trade and Lycos.

"This strategic alliance is a preview of the future for Covad," said Robert E. Knowling, Jr., president and CEO of Covad. "It will enable Covad to help Healtheon/WebMD realize their vision of empowering physicians to provide better care to patients more efficiently and make healthcare information and service more readily available to consumers though the Internet. Leveraging bandwidth to enhance compelling applications on the Internet is Covad's mission. We look forward to helping partners such as Healtheon/WebMD build market leading franchises on our broadband platform."

"Covad's strong delivery platform expands Healtheon/WebMD's access to a full array of integrated broadband services," said Jeff Arnold, CEO of WebMD and CEO-designate of Healtheon/WebMD. "Our plan is to develop a premium portal service, and that must include broadband access for our users so they can fully utilize these services."

The strategic alliance is to include access to Covad's national broadband network, co-marketing and advertising opportunities, and technical and product training. The agreement also grants Healtheon/WebMD the license to use Covad's web-enabled, Java-based pre-qualification tool, which automates qualification information and administration processes.

The advantages of Covad's high-speed digital subscriber line (DSL) technology is that it is always connected to the Internet, eliminating dial up and busy signals, making usage of the network an easy and painless experience. By using traditional copper wire found in homes and businesses, DSL is more cost effective than T-1 or ISDN technologies and provides a high level of security for information on computers and the network.

About Covad

Covad Communications Company is a leading high-speed Internet and network access provider offering DSL services through Internet Service Providers to small and medium businesses and consumers, and sold directly to large enterprise customers. Covad's service is on-line in 11 regions currently encompassing 26 Metropolitan Statistical Areas. Service is available in the San Francisco Bay Area, Los Angeles, Seattle, Sacramento, New York, Boston, the Washington, D.C./Baltimore corridor, Chicago, Philadelphia and San Diego metropolitan areas. Covad has announced plans to deploy its networks in a total of 22 regions, encompassing 51 metropolitan statistical areas nationwide. Covad Communications Company 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. Telephone: [phone] or 888/GO-COVAD; FAX: [phone]. Web Site: www.covad.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release, which are not historical facts may be deemed to contain forward-looking statements, including, but not limited to, deployment of the Company's network in new and existing regions and the timing and breadth of coverage in each region. Actual results may differ materially from those anticipated in any forward-looking statements as a result of certain risks and uncertainties, including, without limitation, the Company's dependence on strategic third parties to market and resell its services, intense competition for the Company's service offerings, dependence on growth in demand for DSL-based services, availability of collocation space and facilities, ability to manage and scale operations, and other risks and uncertainties detailed in the Company's Securities and Exchange Commission filings. The Company disclaims any obligation to update information contained in any forward-looking statement.