Covad Communications Brings Broadband Internet Services to Seattle/Puget Sound Metropolitan Area.

SEATTLE--(BUSINESS WIRE)--Feb. 8, 1999--

Competition Comes to Seattle on the Third Anniversary of the

Telecommunications Act of 1996 With Introduction of High-Speed DSL

Internet Access

Covad Communications Co. (Nasdaq:COVD), a leading provider of digital communications services, today announced the availability of its Digital Subscriber Line (DSL)-based TeleSpeed(R) service in the Seattle/Puget Sound metropolitan area.

Covad's TeleSpeed service is a fast, affordable digital communications service connecting small- to medium-sized businesses to their Internet Service Providers (ISPs) at speeds of up to 1.5 Mbps. Focused on delivering levels of customer service not available from traditional carriers, Covad is the first Competitive Local Exchange Carrier (CLEC) to offer DSL services in the Seattle/Puget Sound metropolitan area.

Appropriately enough, this announcement occurs on the third anniversary of the legislation that makes it possible for small businesses to select their local service providers -- the Telecommunications Act of 1996.

"Covad's arrival in the Seattle area means customers now have a choice when selecting a provider for high-speed Internet access," stated Sharon Nelson, former chairperson of the Washington Utilities and Transportation Commission. "Small to mid-sized businesses need to harness the power of the Internet and e-commerce to remain competitive. Covad's service, available from leading ISPs, makes the Internet perform better for these companies."

Covad's TeleSpeed service is up to 25 times faster than 56K modem connections 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.

In order to offer the best possible customer service, 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. Covad's on-site technicians are knowledgeable and reliable, making installation of the TeleSpeed service easy.

Covad is building its Seattle Regional Network to provide near blanket coverage in the area, making services available to approximately 1.5 million homes and businesses. The company and its ISP partners are currently accepting orders for the TeleSpeed service in the following areas: Auburn, Bellevue Sherwood, Bothell, Des Moines, Everett, Issaquah, Kent Ulrick, Mercer Island, Renton, Seattle, and Tacoma Waverly.

TeleSpeed service availability for the Seattle/Puget Sound area, as well as all of Covad's markets nationwide, can be viewed at http://www.covad.com/getdsl.

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 Seattle/Puget Sound area.

Customers can choose from a wide range of TeleSpeed services: -0-

--   TeleSpeed 1.1 -- for speeds up to 1.1Mbps 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 1.5Mbps and upstream
     speeds up to 384Kbps

-0-

Covad has partnered with leading regional and national ISPs that serve the Seattle area to deliver seamless, one-stop shopping for high-speed Internet access solutions. These partners include: Alternate Access, Inc. (www.aa.net); Flashcom (www.flashcom.com); GUI Ware, Inc. (www.guiware.com); Jet City Online (www.jetcity.com); Manage, Inc. (www.mpire.net); Network OS (www.netos.com); NW Link (www.nwlink.com); Olympia Networking (www.olywa.net); OZ Net (www.oz.net); PacificCrest (www.pacificcrest.com); Seanet (www.seanet.com); ServNet Internet Services (www.serv.net); Site Connect (www.siteconnect.com); Speakeasy (www.speakeasy.org); Verio (www.verio.com); Wolfenet (www.wolfe.net), and; 2Alpha (www.2alpha.net).

About Covad

Covad Communications Co. (Nasdaq:COVD) is a leading packet-based Competitive Local Exchange Carrier that provides dedicated high-speed digital communications services using DSL technology to Internet Service Provider ("ISP") and enterprise customers.

The company has launched its services in the San Francisco Bay Area, Los Angeles, New York, Boston, Washington D.C. and Seattle metropolitan areas and has announced plans to deploy its networks in a total of 22 regions nationwide. Covad Communications Co. and its affiliates doing business as Covad Communications Co., are wholly owned subsidiaries of Covad Communications Group, Inc.

Corporate headquarters is located at 2330 Central Expressway, Santa Clara, Calif., 95050. Telephone: [phone] or 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 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, ability to raise additional capital and other risks and uncertainties detailed in the company's Securities and Exchange Commission filings.