Covad Communications Announces DSL Services in Washington D.C. Area.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Nov. 23, 1998--Covad Communications Company, the first Packet Competitive Local Exchange Carrier (PCLEC) and a leading provider of digital communications services, today announced the availability of its Digital Subscriber Line (DSL)-based TeleSpeed(R) service in the Washington D.C. area.

Covad's TeleSpeed service is a fast, affordable digital communications service connecting small- to medium-sized businesses to their Internet Service Providers (ISPs) and employees who work at home to their corporate network at speeds of up to 1.5 Mbps. Focused on delivering levels of customer service not available from traditional carriers, Covad provides a "24X7" online Customer Care Center which customers can use to check service availability, enter orders, check order and network status and download software upgrades.

At its top speed, Covad's TeleSpeed service is up to 50 times faster than 28.8Kbps modem connections and 10 times faster than ISDN. And, unlike dial-up services, there is no wait to connect and no busy signals. Once installed, the high-speed connection is "always on" and available. The TeleSpeed service is also a flat-rate service with no usage charges eliminating costly, unpredictable charges often associated with ISDN and dial-up services.

Covad is building its Washington D.C. Regional Network to provide near blanket coverage in the area, making services available to approximately 1.8 million homes and businesses. Within 30 days, the company will be accepting orders for services in the following areas: downtown Washington D.C.; Bethesda, MD; Silver Spring, MD; Rockville, MD; Gaithersburg, MD; Chevy Chase, MD; Arlington, VA; Alexandria, VA and Fairfax, VA.

Keith Markley, President and General Manager for Covad's Mid-Atlantic Region, commented, "Covad aims to provide its Internet access customers with a service that is easy to order, install and maintain. They can also expect unparalleled customer service. Additionally, our remote access service will allow corporations to provide their employees with a dedicated and secure connection back to the corporate LAN at fast speeds."

Covad supports Asymmetric DSL (ADSL), ISDN DSL (IDSL) and Symmetric DSL (SDSL) services and will have the broadest coverage of any service provider within the D.C. area. In addition, Covad's online Customer Care Center makes it easy for customers to place and check the status of orders, make service inquiries and check service availability. The Company also provides post-installation technical support from a professional staff, ensuring the highest level of customer satisfaction. -0-

Customer's can choose from the following TeleSpeed services:

TeleSpeed 1.1 - for speeds up to 1.1 Mbps in each direction
TeleSpeed 768 - for speeds up to 768Kbps in each direction
TeleSpeed 384 - for speeds up to 384Kbps in each direction
TeleSpeed 192 - for speeds up to 192Kbps in each direction
TeleSpeed 144 - for speeds up to 144Kbps in each direction
TeleSpeed 1.5 - for download speeds up to 1.5 Mbps and upstream speeds
 up to 384Kbps

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Claudia Bacco, Senior DSL Analyst for Telechoice, Inc., commented "Covad has a strong strategic vision for delivering a wholesale service targeted at small and medium businesses. They have proven consistency in achieving this vision by continuing to add deployment in the top metropolitan regions across the US. Additionally, they strive to provide customers with the level of support required to make the DSL order and installation process flow more smoothly."

High-speed Internet Access

Covad's TeleSpeed service allows ISPs to offer their small business customers dedicated, affordable digital connections to the Internet at much higher speeds than dial-up or ISDN can deliver. With the TeleSpeed service, ISPs can deliver the speed and functionality of traditional dedicated services, but at a much lower cost. Because Covad ISPs will be able to offer one stop shopping and service, the TeleSpeed service is extremely easy to order, install and maintain. Users will receive fast and timely installations. In addition, a single bill for Internet access and local transport means users can eliminate the confusion of separate ISDN, T1 or Frame Relay bills.

Current Covad ISP partners in Washington D.C. include Atlantech Online (www.atlantech.net), CAIS (www.CAIS.net), Core Communications Inc. (www.coretel.net), CrossLink Internet Services (www.DSLexpress.net), DigitalSelect (www.digitalselect.net/xDSL.htm), FlashCom (www.flashcom.com), Hub Internet Services (www.knight-hub.com), Legal Technology Solutions (www.ltsweb.net), PatriotNet (www.patriot.net).

Remote Access

Due to a tight labor market, the high cost of office space, crowded highways and the growing importance of information as a strategic asset, teleworking is an attractive, cost-effective business solution for corporations and employees alike. Covad's TeleSpeed service allows corporate employees - or "teleworkers" - who work at home on a part-time, full-time, or after-hours basis to enjoy similar response times as their in-office counterparts when transferring files, accessing corporate databases or downloading presentations. Because all data traffic is aggregated by Covad and delivered to the corporation over a single Wide Area Network (WAN) circuit, the TeleSpeed service enables corporations to cut costs by eliminating the need to deploy, maintain and upgrade dial-up modem pools at the corporate site.

About Covad Communications Company

Covad Communications is a leading packet-based Competitive Local Exchange Carrier that provides dedicated high-speed digital communication services using Digital Subscriber Line (DSL) technology to enterprise and Internet Service Provider ("ISP") customers. The Company has previously launched its services in the San Francisco Bay Area, Los Angeles, New York and Boston metropolitan areas and has announced plans to deploy its service network in a total of 22 regions nationwide. Covad Communications' corporate headquarters are located at 2330 Central Expressway, Santa Clara, Calif., 95050. For more information concerning Covad Communications Company and the TeleSpeed(SM) service visit: http://www.covad.com or email [e-mail]. Telephone: [phone] or 1-888-GO-COVAD; FAX: [phone].

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 expected deployment in Washington D.C., expected homes and businesses passed, the breadth of coverage in the region, customer support levels, and ease of ordering, installing and maintaining the service. The occurrence of such events involves risks and uncertainties, including, without limitation, demand and competition for the services and the products to be sold by the Company, the ability to hire key personnel in the region, the ability of the Company to meet the timing of rollouts in the Washington D.C. area and additional regions, and other risks and uncertainties detailed in the Company's Securities and Exchange Commission filings.