Covad Files Brief to Support FCC's Request for Further Review of Line Sharing Decision; FCC's Action Will Further Help Protect the Future of Line Sharing.

Business Editors/High-Tech Writers

Covad Communications (OTCBB:COVD) said today it filed a supporting brief to the Federal Communications Commission's (FCC) late Monday request for further review of the District of Columbia Circuit Court's decision. The decision directed the FCC to re-justify its adoption of a number of unbundled network elements, including line sharing.

"Covad is leading the industry toward lower prices and higher quality services and without the competition that line sharing enables, consumers would instead be left with only the Bell companies, who have shown a desire to raise -- not lower -- prices," said Charlie Hoffman, Covad president and chief executive officer. "We welcome and support the FCC's request for further review because it gives consumers confidence that competition is here to stay in the broadband industry."

The FCC's request asks the D.C. Circuit to further review its decision and automatically postpones the implementation of the decision until the review is complete. This means that all of the FCC's unbundling rules, including line sharing, remain in effect until the final disposition of the FCC's rehearing petition. At the conclusion of those proceedings, the FCC or another appropriate party can seek further review from the United States Supreme Court.

Beyond the FCC action, Covad has reminded consumers that line sharing is secured for the near future by Covad's contracts with all of the four regional phone companies. Additionally, SBC has announced that line sharing will remain in effect regardless of current legal issues throughout the FCC's triennial review. Further, Verizon is required to maintain line sharing as a result of Bell Atlantic/GTE merger conditions imposed by the FCC. SBC and Verizon, together, account for approximately 82 percent of Covad's line shared lines. Finally, a number of states in the BellSouth and Qwest regions, including Colorado, Georgia, Alabama and Minnesota, have taken steps to enforce line sharing mandates at the state level.

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, T1, managed security, IP and dial-up services directly through Covad and through Internet Service Providers, value-added resellers, telecommunications carriers and affinity groups 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 the ultimate fate of line sharing, the FCC's desire to pursue line-sharing, expected court rulings, regulatory developments, SBC's commitment to maintain line-sharing until the next FCC triennial review, the requirements imposed on Verizon to maintain line-sharing in the future and the statements made by the president and CEO 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, 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. 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 Dec. 31, 2001 and its Report on Form 10-Q for the period ended March 31, 2002.