Covad Communications Enters Into Line Sharing Agreement With US West; Agreement Triggered by FCC Decision Leads to Line Sharing Throughout US WEST Territory.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE0--April 25, 2000--Covad Communications (Nasdaq:COVD), the leading national broadband services provider utilizing DSL (Digital Subscriber Line) technology, has entered into a regional agreement to share phone lines with US WEST to provide high-speed broadband access in US WEST's 13 states outside of Minnesota.

In December 1999, Covad entered into an agreement with US WEST to implement line sharing in Minnesota. Covad was joined by other competitive carriers in the new agreement, which is the first of its kind in the nation.

"Covad applauds the joint efforts of the competitive carriers and US WEST, which have resulted in U S WEST becoming the first incumbent phone company to enter a written agreement to share lines on a region wide basis," said Clay Deanhardt, senior counsel for Covad. "This agreement proves that the FCC's line sharing mandate is clearly executable by the incumbent local exchange carriers. Not only will this agreement provide consumers with greater choice in DSL service providers, but we also expect line sharing to result in more competitive DSL pricing and faster installations."

Under the agreement, Covad and the other competitive carriers have the ability to choose by May 1, 2000 one of two different interim monthly loop cost options. The two interim options are either a flat cost of $5.40, or a tiered cost of zero dollars subject to a future increase to $8.25 based on the timing of the proposed US WEST merger with Qwest Communications International Inc. Ultimately, the final costs associated with line sharing will be set by individual state Public Utility Commissions (PUCs) and all interim costs will be adjusted retroactively. Covad believes that the final cost for the shared lines should be zero dollars, and is currently analyzing the interim cost options based on the most recent information available regarding the timing of both the proposed merger and the individual state cost proceedings.

In November of 1999, the Federal Communications Commission (FCC) required local incumbent phone companies to share existing phone lines with competitive carriers, including Covad, by June 6, 2000. Line sharing allows consumers to use their existing phone line for both normal phone service provided by a local phone company and for high speed Digital Subscriber Line data access through another provider. The ruling helped to level the playing field by giving consumers the choice of DSL providers without the burden of a separate line, longer installation, and higher prices.

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 63 of the top Metropolitan Statistical Areas (MSAs) and are expected to be available in 100 MSAs by the end of 2000. At that time, Covad's network will reach more than 40 percent of all US homes and 45 percent of all US businesses. Corporate headquarters is located at 2330 Central Expressway, Santa Clara, CA 95050. Telephone: 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 overall market demand for the Company's services, the impact of line sharing on DSL installation intervals and pricing, the ability to continue to build out central offices with deployment of the Company's network in new and existing regions, the ability to scale our business 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, dependence on incumbent local exchange carriers for collocation, unbundled network elements and transport, ability to manage growth of our operations and other risks and uncertainties detailed in the Company's Securities and Exchange Commission filings.