Covad Appoints Charles E. Hoffman President and Chief Executive Officer; Globally-Respected Telecommunications Industry Leader Poised to Lead Covad On the Path to Profitability.

Business Editors/High-tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--June 5, 2001

Covad Communications (Nasdaq:COVD), the leading national broadband services provider utilizing DSL (Digital Subscriber Line) technology, announced that the Board of Directors will name Charles E. Hoffman as Covad's new president and chief executive officer, effective June 25, 2001.

At that time, Frank Marshall will resign as the interim CEO and will remain on Covad's Board of Directors as vice chairman. Hoffman will actively work with Frank Marshall and Chuck McMinn, Covad's chairman, to lead the senior management team and provide strategic direction, oversee Covad's relationship with the financial community, and manage day-to-day operations.

"Charlie's extensive telecommunications and broadband expertise, understanding and passion for the customer and proven ability to successfully lead a company to greater heights are just a few reasons why he is the right person to be Covad's next president and CEO," said Chuck McMinn, Covad's chairman. "Covad has weathered some tough times and is now prepared and ready for new leadership that will grow and drive the company to profitability. I commend Frank Marshall for helping transform the business from the maximum growth strategy of 2000 to the quickest path to profitability strategy we are on now. Charlie's strong leadership style, marketing and channel expertise, and competitive, fast-paced, results-driven approach will help us to continue executing on today's strategy."

"Although the DSL industry has its mix of challenges, I am confident that the worst is behind us and that Covad is now, more than ever, better positioned to capitalize on the broadband opportunity," said Charles Hoffman. "Covad's previously-announced first quarter operational results demonstrate that the demand for DSL continues to soar and that Covad has the systems and capabilities in place to scale the business by quickly adding subscribers and new services to its nationwide network. I'm eager to dive into the business, execute on our profitability plan and re-establish the confidence in Covad's leadership and strategic direction."

A 20-year telecommunications industry veteran, Hoffman will bring to Covad a wealth of telecommunications experience from the wireless, cable, local, and long-distance telecommunications sectors. Most recently, he served as president, CEO and director of Rogers Wireless Communications Inc., Canada's largest wireless communications services provider. Under his direction and leadership, changes in marketing, distribution, sales, billing, customer care and network expansion drove the growth of the company from the number four provider to the largest provider in Canada with over three million subscribers. In the past two years, he raised over a billion dollars through a private debt offering and a strategic equity offering.

Prior to Rogers Wireless, Hoffman spent two years as president of the Northeast region for Sprint PCS, where he helped build the nationwide wireless carrier, which was a start-up company owned by Sprint, TCI, Comcast, and Cox Communications. Before joining Sprint PCS, he spent 16 years at Southwestern Bell (SBC) in various senior positions, including regional manager, general manager, and vice president and general manager. As Cellular One's president and general manager for several East Coast regions, Hoffman managed to turn around the second and fourth largest SBC markets, Boston and Washington/Baltimore, from underperformers to market leaders within record time. He also gained extensive global telecom experience as managing director of wireless for SBC International and director general for Telcel, the largest nationwide wireless carrier in Mexico.

Earlier in his career, Hoffman spent several years in sales and marketing at SBC and IBM. He is currently on the Board of Directors for Wysdom Inc., Cellular Telecommunications Internet Association, Canadian Wireless Telecommunications Association and Cibernet, Inc.

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 U.S. homes and businesses. Corporate headquarters is located at 4250 Burton Drive, Santa Clara, Calif. 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 Covad's ability to file its financial results, become profitable, plans to expand its network, market opportunities, the cost, of the deployment of Covad's network and launching of its services, Covad's ability to recover past amounts paid to local exchange carriers, implementation of line sharing and self-installation, anticipated capital expenditures, expense reductions and other operating results, and the success of strategic relationships. 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.