Covad Enters 10 New Markets With TeleXtend T1 Service; Affordable T1 Service is Now Available to 2.1 Million Small Businesses Throughout Covad's National Network.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--March 5, 2002

Covad Communications (OTCBB:COVD), the leading national broadband services provider utilizing DSL (Digital Subscriber Line) technology, today added 10 new markets to its TeleXtend(SM) T1 service availability. TeleXtend is now available to 2.1 million small businesses throughout Covad's national network; new markets include Baltimore, Md., Boston, Mass., Cleveland, Ohio, Kansas City, Kan. and Kansas City, Mo., New York, N.Y., Philadelphia, Pa., Raleigh, N.C., Sacramento, Calif., San Diego, Calif. and Washington D.C.

TeleXtend offers high speed Internet access at up to 1.5 Mbps with no distance limitations and is up to 30 percent more affordable than competitive T1 offerings. Previously, businesses requiring a reliable high-speed Internet connection often could not qualify for certain SDSL (symmetrical digital subscriber line) bandwidths due to distance constraints or technical limitations such as repeaters or bridge taps. With the introduction of TeleXtend, these businesses are now able to receive the appropriate bandwidth for everyday business functions such as email and high-speed document transfers.

"We chose TeleXtend because it was the most reasonably priced T1 offering," said Harry Ree, Network Specialist for The Source Group, Inc., a Covad TeleXtend customer based in Pleasant Hill, Calif. "Additionally, our installation was very smooth, Covad's Web site kept us up to date on the details of the installation and we were actually online ahead of schedule."

Ernie Bergstrom of Cahners-In-Stat., an analyst who specializes in the DSL market said, "This is a good product for Covad because it expands their service offerings beyond DSL. The continued rollout of TeleXtend is a great example of Covad's commitment to offer small businesses connectivity at affordable price points."

Customers can also track their order online with Covad's unique Web Self Service offering, an online tool that enhances the broadband ordering and installation experience by enabling end-users and partners to electronically monitor the status of their orders, eliminating the need to call customer service.

"Covad is committed to bringing the value and reliability of TeleXtend to these new markets," said Todd Kiehn, senior product manager for Covad. "TeleXtend is offered at up to 30 percent less than competitive T1 services and is generally installed within 30 days of ordering, making it a smart choice for small and medium-sized businesses. Big company bandwidth can now be available at a price any-sized company can afford."

Covad expects the price for TeleXtend to begin at $449 per month for Internet access. Additional features are extra. TeleXtend is already available in the following markets: Atlanta, Ga., Miami, Fla., Minneapolis/St. Paul, Minn., San Francisco, Calif., St. Louis, Mo., Chicago, Ill., Dallas, Texas, Denver, Colo., Detroit, Mich., Houston, Texas, Los Angeles, Calif., Phoenix, Ariz., Portland, Ore. and Seattle, Wash.

About Covad Communications

Covad is the leading national broadband service 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 94 of the top Metropolitan Statistical Areas (MSAs). Covad's network currently covers more than 40 million homes and business and reaches approximately 40 to 45 percent of all US homes and businesses. Corporate headquarters is located at 3420 Central Expressway, Santa Clara, CA 95051. 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 press release that are not historical facts are "forward-looking statements," including statements concerning Covad's anticipated reduction of costs and the expected performance and expanded availability of the products and services described in this release. 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, Covad's ability to raise additional capital and address its financial issues, to continue as a going concern, to continue to service and support its customers, to successfully market its services to current and new customers, the consolidation of sales to a fewer number of wholesale customers, Covad's ability to generate customer demand, to achieve acceptable pricing, to respond to increasing competition, to manage growth, to receive timely payment from our Internet service providers and other 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. 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, 2000 and in Covad's SEC Quarterly Report on Form 10-Q for the quarter ended September 30, 2001.