Covad Appoints New Chief Financial Officer.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 2, 2000

Former US WEST Corporate Finance Executive Joins Nation's Leading

Broadband Services Provider; Further Strengthening Covad's

World-Class Management Team

Covad Communications (Nasdaq:COVD), the leading national broadband services provider utilizing DSL (Digital Subscriber Line) technology, today announced the appointment of Mark H. Perry as executive vice president (EVP) and chief financial officer (CFO). He is succeeding the current EVP and CFO, Timothy Laehy, who is retiring.

"Mark's addition to the Covad team is another example of how we continue to strengthen and deepen the breadth of our core management team," said Robert E. Knowling Jr., Covad's chairman, president and CEO. "We intend to tap into Mark's array of global experience and expertise in finance, operations and business development to build upon the world-class finance organization that Tim has helped create at Covad."

In another move to solidify the Covad financial team, Nick Kormeluk was promoted to senior vice president of investor relations. He will continue in his responsibilities of managing investor relations activities, including all analyst contacts.

Perry will be responsible for all aspects of Covad's finance organization, including strategic and financial planning and analysis, financing, investor relations, accounting, treasury, financial processes and business controls, and process improvement.

Bringing more than 25 years of financial leadership experience in the telecommunications, broadcasting and entertainment industries, Perry joins Covad from US WEST Communications, where he most recently served as vice president of operations. Perry was responsible for leading the recent merger integration activity with counterparts at Qwest Communications (NYSE:Q).

Prior to that position, Perry served as US WEST's vice president of finance and administration, where he was responsible for all finance activities for the operations and technology organization, a business unit comprised of approximately 30,000 employees. Perry has also held executive management positions at US WEST International in Europe and RCA Corporation.

"There is a huge opportunity in the competitive broadband services space and I'm confident that Covad will continue to lead the charge in bringing broadband to the masses," said Perry. "My background in finance and operations, as well as my international and business development and merger integration experience seems to be a perfect fit with Covad's goal of becoming the world's dominant broadband services provider."

About Covad

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 94 of the top Metropolitan Statistical Areas (MSAs). By the end of 2000, Covad services are expected to be available in 165 MSAs (which includes MSAs that will be added as a result of the acquisition of BlueStar Communications). At that time Covad's network is targeted to reach more than 45 percent of all U.S. homes and 50 percent of all U.S. businesses. Corporate headquarters is located at 4250 Burton Drive, Santa Clara, CA 95050. 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 release which are not historical facts may be deemed to contain forward-looking statements, including but not limited to statements regarding the intention to deploy our network in new and existing MSAs, the timing and breadth of coverage in each MSA, our ability to reduce our prices, increase distribution methods, scale our business, deliver enhanced broadband solutions, and our ability to provide multimedia content. 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 incumbent local exchange carriers for collocation, unbundled network elements, transport and other facilities, development of necessary technologies and operations, ability to manage growth of our operations, and the need to raise additional capital. For other risks and uncertainties applicable to our business refer to the company's Securities and Exchange Commission filings.