Covad Communications Releases White Paper on the Future of Copper.

SAN JOSE, Calif. -- New Variants of Current DSL Technologies Will Allow Copper to Remain the Industry's Workhorse for Many Years to Come

Covad Communications Group, Inc. (OTCBB:COVD), a leading national provider of integrated voice and data communications, today released a white paper predicting copper would remain a ubiquitous, last-mile connection medium for many years.

For economic and practical reasons -- and despite recent announcements by some phone companies of upcoming fiber deployments -- most objective analysts agree that existing copper loops are likely to remain in service for some time. However, another reason limiting fiber deployment is the untapped capacity of the existing copper connections into households and businesses.

"While Fiber-to-the-Home (FTTH) gets attention as the next great advancement in telecom access, the practical realities of fiber deployment are extremely expensive and time consuming," said Ron Marquardt, the paper's author and Covad's director of product development for alternative access services. "The advent of new DSL technologies greatly increases the usable capacity of existing copper and demonstrates the effectiveness of copper as the last-mile connection to homes and small-businesses."

Charles Hoffman, president and chief executive officer of Covad, added: "Covad is one of the innovative competitors who are continually looking for ways to deliver new and exciting services to businesses and consumers. While we continue our strategic focus on developing alternative last-mile connection opportunities, we also firmly believe that reports of copper's imminent demise are greatly exaggerated."

The white paper is entitled, "The Future of the Copper Loop" and was previewed in the July issue of Telecommunications Magazine. The full white paper is available on Covad's web site at http://www.covad.com/voip/voip_whitepaper.shtml?wp=3.

About Covad

Covad is a leading nationwide provider of integrated voice and data communications. The company offers DSL, Voice Over IP, T1, Web hosting, managed security, IP and dial-up, and bundled voice and data services directly through Covad's network and through Internet Service Providers, value-added resellers, telecommunications carriers and affinity groups to small and medium-sized businesses and home users. Covad broadband services are currently available across the nation in 44 states and 235 Metropolitan Statistical Areas (MSAs) and can be purchased by more than 57 million homes and businesses, which represent over 50 percent of all US homes and businesses. Corporate headquarters is located at 110 Rio Robles San Jose, CA 95134. Telephone: 888-GO-COVAD. Web Site: www.covad.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

The foregoing contains "forward-looking statements," such as those regarding the continued use and future deployment of telecommunications technologies by Covad and other companies, which are based on management's current information and beliefs as well as on a number of assumptions concerning future events made by management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside Covad's control, which could cause actual results to differ materially from such statements. These risk factors include the impact of increasing competition, pricing pressures, consolidation in the telecommunications industry, uncertainty in telecommunications regulations and changes in technologies, among other risks. For a more detailed description of the risk factors that could cause such a difference, please see Covad's 10-K, 10-Q, 8-K and other filings with the Securities and Exchange Commission. Covad disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of Covad.