Covad Brings DSL to Phoenix Business and Home Users and Completes Its Phase One Roll-Out to 51 of the Top MSAs in the Country.

PHOENIX--(BUSINESS WIRE)--Aug. 18, 1999--

Business and Home Users in the Phoenix Area Now Have a

Choice When Choosing a DSL Provider and an Alternative

to the Local Telephone Company

Today Covad Communications (Nasdaq:COVD), a leading broadband access and services provider, announced the availability of their Digital Subscriber Line (DSL)-based services in the Phoenix area to local homes and businesses.

Covad's service offers customers in the valley an alternative to the local telephone company for high-speed Internet access.

Covad's introduction of Phoenix completes a major milestone for the company as it marks the conclusion of the phase one roll-out of cities which was scheduled to be finished by the end of 1999. Covad's phase one roll-out included expansion into 22 regions encompassing 51 of the top metropolitan statistical areas in the country.

"As Covad's last phase one region to be introduced, Phoenix represents Covad's ability to bring DSL to cities quickly and efficiently," said Bob Roblin, Covad's executive vice president of marketing. "Being able to provide broadband access to the top 51 MSAs in the country is a high point for the company and we are excited to expand our network even further."

For Phoenix, Covad has established strategic relationships with regional and national Internet Service Providers (ISPs), making it easier to order, install, and manage high-speed Internet access. Currently, Covad's services are available through regional ISPs RMI.NET, Inc. (Nasdaq: RMII, RMIIW) (www.rmi.net) and Zyan Communications (www.zyan.com). Covad's services are also available through national ISPs Flashcom Inc. (www.flashcom.com) and Speakeasy Network (www.speakeasy.net).

Currently, Covad's network serves approximately 85% of the businesses and 80% of the homes in the Phoenix area. In addition to the Phoenix metropolitan area, Covad's services will also be available in Scottsdale, Tempe, Mesa, Chandler, Paradise Valley, Peoria, Deer Valley, Glendale, Superstition, Fort McDowell, and Beardsley.

Providing access to the Internet and corporate networks, Covad's DSL services give customers a dedicated and secure connection using the copper phone wires found in businesses and homes today. Because DSL is a high-speed connection that is always available, the need to dial in each time a user wants to browse the Internet or download email is eliminated. Customers are spared the waits commonly associated with dial-up access solutions.

"Covad's breadth of coverage in the Phoenix area ensures that business and home users will be ready for the high-speed future of media-rich applications," said Bob Grant, president and general manager of Covad's Central region. "With broadband, the Internet is a limitless medium."

With data connections up to 50 times faster than 28.8K modems, Covad's TeleSpeed(R) service is a great solution for businesses. For home users, Covad's TeleSurfer(TM) service provides users with connections up to 25 times the speed of most dial-up solutions providing a high quality and widely available residential option for high-speed Internet access. TeleSurfer service provides residential users privacy, flexibility and reliability advantages over the services offered through cable companies. Unlike cable companies that use a shared line between neighbors, a connection through Covad is dedicated to a single user through a point-to-point network.

About Covad

Covad Communications Company is a leading provider of high-speed Internet access made possible by offering DSL services to large enterprise customers and through Internet Service Providers to small and medium-sized businesses and home users. Covad services are currently on-line in 22 regions, encompassing 51 Metropolitan Statistical Areas. Service is available in the San Francisco Bay Area, Los Angeles, Seattle, Sacramento, New York, Boston, Washington D.C., Baltimore, Chicago, Philadelphia, San Diego, Atlanta, Detroit, Minneapolis/St.Paul, Denver, Portland, OR., Raleigh/Durham, Austin, Houston, Dallas/Ft. Worth, Miami, and Phoenix metropolitan areas. 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: 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, 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, loops 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.