Covad Expands Availability of Telextend T1 Service Adds Nine More Markets, Leading ISPs to T1 Line-Up.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--Dec. 18, 2001

Covad Communications (OTCBB:COVD), the leading national broadband services provider utilizing DSL (Digital Subscriber Line) technology, today announced expanded availability of its TeleXtend T1 service in Chicago, Dallas, Denver, Detroit, Houston, Los Angeles, Phoenix, Portland and Seattle. This makes a total of 14 markets in Covad's national network where TeleXtend is available.

In addition, Covad announced that it has signed Speakeasy and DSL.net, two of the nation's leading providers of business-class broadband access and network services, to sell TeleXtend services. TeleXtend is also available from Covad directly at www.covad.com and MegaPath Networks.

TeleXtend offers affordable high speed Internet access at up to 1.5 Mbps with no distance limitations and is up to 30 percent less expensive than competitive T1 offerings. Additionally, TeleXtend is fully integrated into the Covad network, systems and processes, leading to a quicker and more efficient installation process.

Previously, small businesses such as law firms and graphic design shops often could not qualify for certain SDSL (symmetrical digital subscriber line) bandwidths due to distance constraints or technical limitations such as bridge taps. With the introduction of TeleXtend these small businesses are now able to request the appropriate bandwidth for everyday business functions such as email and high-speed document transfers. This can result in increased productivity at lower ongoing costs.

"Covad is continuing to expand the world of broadband options for small businesses with the introduction of TeleXtend to additional markets," said Todd Kiehn, senior product manager for Covad. "TeleXtend offers a low-cost, high performing alternative to traditional T1 offerings that small businesses have been waiting for."

"We are now able to offer more of our customers, despite their distance limitations, an affordable option for their high speed Internet access," said Mike Apgar, chief executive officer of Speakeasy. "Our valuable partnership with Covad is beneficial to both Speakeasy and our unique customer base. We now can expand our offerings to previously unserved markets, growing our business and growing the popularity of broadband at the same time."

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 expects the price for TeleXtend to begin at $449 per month for Internet access, which is significantly lower than current competitive offerings. Additional features are extra. Since November 2001, TeleXtend has been available in the following markets: Atlanta, Miami, Minneapolis/St. Paul, San Francisco and St. Louis. Expanded availability is expected throughout the first quarter of 2002.

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 June 30, 2001.