Covad Communications Files Registration Statement for Common Stock Offering.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 8, 1999--

Covad Communications Group, Inc. (Nasdaq:COVD) today announced that it has filed a registration statement with the Securities and Exchange Commission for its previously announced offering of 13 million shares.

The offering is comprised of approximately 11.4 million primary shares to be sold by Covad, with the remaining 1.6 million shares to be sold by Company management.

In addition, the Company may sell an additional 1.95 million shares in the offering, pursuant to an over-allotment option. The Company intends to use the proceeds of the offering to expand its network, for sales and marketing activities, to support possible strategic investments and acquisitions, for working capital and for general corporate purposes.

Bear, Stearns & Co. Inc. is the book-running lead manager, Morgan Stanley Dean Witter is the joint lead manager, and Credit Suisse First Boston Corporation, Deutsche Banc Alex. Brown Incorporated, Donaldson, Lufkin & Jenrette Securities Corporation, Goldman Sachs & Co. and Utendahl Capital Partners L.P. are the co-managing underwriters of this offering.

The registration statement has been filed with the Securities and Exchange Commission, but has not yet become effective. These shares may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these shares in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.