Covad Drives Broadband Adoption by Joining Microsoft Windows Media Broadband Jumpstart Initiative.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 29, 1999--

The nation's leading DSL services provider, Covad Communications (Nasdaq: COVD), today announced it is a part of the Windows Media Broadband Jumpstart initiative to accelerate broadband technology adoption by consumers and businesses. This initiative was announced today by Microsoft Corp. at the Digital Hollywood conference in Los Angeles.

Covad is the leading broadband service supplier in the group of 25 access and content companies participating in the initiative. The goal of the Windows Media Broadband Jumpstart initiative is to increase the rate of broadband adoption. As a part of the initiative, Covad will participate in a trial that will provide high-speed connectivity and multimedia content to users of Windows Media Technologies 4. Covad will work closely with the trial participants to ensure that users of the Covad network will have high quality access to the widest range of content and services.

"This initiative is consistent with Covad's strategy to deliver multimedia content and applications to both the consumer and business market," said Robert Roblin, executive vice president and chief marketing and sales officer for Covad. "The robust technology of Windows Media and this initiative's efforts to "jumpstart" great quality broadband content will help establish the critical mass of consumer demand for broadband connectivity that we need. The broadband experience is much more compelling, whether it's e-shopping or e-education, and will be the foundation for expanding how Covad delivers the Internet to consumers and businesses."

Covad is providing high-speed connections to deliver broadband content to homes and businesses across the US. Covad services are currently available in 51 metropolitan statistical areas (MSAs), with DSL available to more than 28 million homes and businesses by the end of 1999. By the end of 2000, Covad's network will be available in 100 MSAs and bring broadband capabilities to 40 percent of the homes and 50 percent of businesses in the country.

"The Windows Media Broadband Jumpstart initiative will help drive the demand for broadband media and define success paths for all players, from content and connectivity providers all the way to the consumer," said Navin Chaddha, director, Broadband and Infrastructure, Marketing and Business Development, Streaming Media Division, Microsoft Corp. "We're excited to work closely with a leader like Covad to realize the potential of broadband technology today using the industry-leading capabilities of Windows Media Technologies 4."

About Covad

Covad Communications is a leading broadband access and services provider of high-speed Internet and network access. It offers DSL services through Internet Service Providers to small and medium-sized businesses and home users. Covad services are currently available across the United States in 51 of the top Metropolitan Statistical Areas (MSAs). By the end of 2000, Covad's network will reach 40 percent of all US homes and 50 percent of all US businesses. Covad Communications and its affiliates, doing business as Covad Communications Company, are wholly owned subsidiaries of Covad Communications Group, Inc. (Nasdaq: COVD). Corporate headquarters is located at 2330 Central Expressway, Santa Clara, CA, 95050. Telephone: 1-888-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, deployment, scalability and integration 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, availability of collocation space, loops and facilities, ability to manage and scale operations, and other risks and uncertainties detailed in the Company's Securities and Exchange Commission filings. The Company disclaims any obligation to update information contained in any forward-looking statement.

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