Covad Debuts New Advertising Campaign Targeting Small Businesses; Campaign Includes National Cable TV, Radio and Internet.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--March 17, 2003

Covad Communications (OTCBB:COVD), a leading national broadband service provider of high-speed Internet and network access, today debuts a national cable television, Internet and regional radio advertising campaign that focuses on the benefits of broadband for small businesses.

The theme of the campaign is "Broadband Makes Small Business Better." The television spots use humorous characters representing small business owners. These characters show that working faster, being efficient, having focus and working smarter is required for success and that a broadband connection can help. Each character represents these attributes in a humorous way. Working faster is a bionic, speed-running florist; efficient is a four-armed man getting a lot done; focus is a man with one large eye that runs a car repair shop; and working smarter is a man with a very large brain. The radio and Internet campaign will also reflect this theme.

"We know that the only thing that small businesses have in common is that each one is different and requires tailored broadband packages to help their business succeed," said Pat Bennett, executive vice president and general manager, Covad Broadband Solutions. "These unique requirements require individual attention by a broadband provider. Covad has a focused team to give them that attention, and we think these ads will help promote our strong ability to service this market."

The cable television campaign breaks today on CNN Headline News, CNBC, CNNfn, Fox News Channel, ESPN, ESPN News Channel and Business Week TV. The radio campaign will target four cities -- New York, Washington, D.C., San Francisco and Chicago and will run beginning March 31, 2003. On-line media will include a variety of search and business sites. All media are scheduled to air in second quarter 2003.

Creative for the advertising and media purchases was handled by Gee Jeffery Advertising in San Francisco. The campaign budget is not disclosed.

About Covad Communications

Covad is a leading national broadband service provider of high-speed Internet and network access utilizing Digital Subscriber Line (DSL) technology. It offers DSL, T1, managed security, IP and dial-up services and bundled voice and data services directly to end users and to Internet Service Providers, value-added resellers, telecommunications carriers and affinity groups to small and medium-sized businesses and home users. Covad's network currently serves 96 of the top Metropolitan Statistical Areas (MSAs) and covers more than 40 million homes and businesses or approximately 45 percent of all US homes and businesses. Corporate headquarters is located at 3420 Central Expressway, Santa Clara, CA 95051. 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 press release that are not historical facts are "forward-looking statements," including Covad's expected revenue, EBITDA, broadband subscription billings and other financial measures, anticipated subscriber line additions, Covad's ability to reduce the number of subscriber lines purchased by resellers for whom Covad recognizes revenue only when it is paid, and the statements made by the executive vice president and general manager of Covad Business Solutions and the assumptions underlying such statements. Actual events or results may differ materially as a result of risks facing Covad or actual results differing from the assumptions underlying such statements. Such risks and assumptions include, but are not limited to, future FCC rulemaking, the terms and interpretations of the decision announced February 20, 2003 by the FCC, Covad's ability to continue as a going concern, to continue to service and support its customers, to successfully market its services to current and new customers, to manage the consolidation of sales to a fewer number of wholesale customers, to successfully migrate end users, Covad's ability to generate customer demand, to achieve acceptable pricing, to respond to competition, to develop and maintain strategic relationships, to manage growth, to receive timely payment from customers, to access regions and negotiate suitable interconnection agreements, all in a timely manner, at reasonable costs and on satisfactory terms and conditions, as well as regulatory, legislative, and judicial developments and the absence of an adverse result in litigation against Covad. Covad disclaims any obligation to update any forward-looking statement contained in this press release. All forward-looking statements are expressly qualified in their entirety by the "Risk Factors" and other cautionary statements included in Covad's SEC Annual Report on Form 10-K for the year ended December 31, 2001 and its Report on Form 10-Q for the period ended September 30, 2002, along with Current Reports on Form 8-K filed from time to time with the SEC.