Covad Introduces DSL JumpStart Install Kit; Covad DSL JumpStart Kit is the First Self Installation Kit Designed With the Consumer Experience in Mind.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--April 3, 2001

Covad Communications (Nasdaq:COVD), the leading national broadband services provider utilizing DSL (Digital Subscriber Line) technology, today announced the Covad DSL JumpStart Install Kit(TM), the most user-friendly three-step self-installation kit available to consumers today. The kit enables consumers to conveniently install DSL so that they can more quickly experience the benefits of a broadband DSL connection.

Designed with the consumer experience in mind, the DSL JumpStart Kit walks the consumer through a simple three-step installation process. The consumer is guided by easy instructions with pictures that provide the consumer with information needed for each step. The installation process includes preparing the consumer's house by attaching DSL blockers to every telephone; connecting the DSL modem to the computer; and installing software that will automatically connect the consumer's computer to the Internet. It is expected that the installation process will take approximately 30 minutes.

"Covad's intuitively designed DSL JumpStart Kit is exactly what the industry has been waiting for -- a kit that simplifies DSL installation and improves the overall consumer DSL installation experience," said Eric Moyer, director of consumer product marketing for Covad. "The DSL JumpStart Kit enables Covad to offer a consumer broadband solution that eliminates the associated costs, time and hassle of sending a DSL technician to a consumer's home."

The DSL JumpStart Kit allows consumers to have the flexibility and freedom to install their DSL connection as their schedule permits. Consumers no longer have to take a day off work and wait at home for a DSL technician to arrive. Once a consumer DSL order is placed and approved through an affiliated Internet or broadband service provider or Covad's website (www.covad.com), a DSL JumpStart Kit will be shipped to the customer's home within approximately ten days.

The DSL JumpStart Kit is currently available through Speakeasy.net (www.speakeasy.net), one of Covad's national Internet service providers (ISPs). Within the next few weeks, additional Internet and broadband service providers affiliated with Covad, such as Prodigy and others will be offering the DSL JumpStart Kit to satisfy the demand for consumer broadband services. The providers offering the DSL JumpStart Kit also have the opportunity to customize and co-brand the kit.

"Covad's DSL JumpStart Kit will continue to improve the efficiency of the DSL installation process," notes Mike Apgar, CEO of Speakeasy.net. "Given the continued high demand Speakeasy.net is experiencing, Covad's consumer self-installation offering is a critical step towards our goal of providing DSL service to our customers more quickly."

After completing the simple installation, consumers will have a high-speed, "always on" connection that enables them to simultaneously surf the Internet and talk on the phone. Tasks such as downloading video or audio clips, file transfers, online shopping, and other high-speed applications become much easier and more efficient with a DSL line since waiting for dial-up or being frustrated by busy signals is never a concern.

Covad broadband experts are available via telephone by calling a toll-free number if consumers need assistance during the self-installation process. A professional installation option is also available at an additional cost for consumers who prefer that a Covad technician perform the DSL installation. The professional installation option is available through affiliated ISPs listed at www.covad.com.

The Covad DSL JumpStart Kit is a final step in delivering a cost-effective consumer broadband service. In order for Covad to offer consumers a self-installation option, there were several prerequisites. First, Covad had to fully integrate G.Lite and G.DMT full-rate equipment in its nationwide network, which was completed in March 2000. Second, since the November 1999 Federal Communications Commission (FCC) mandate, Covad has been working with each phone company on the enhancements needed in their central offices to provide line-sharing. Third, with the network infrastructure and line-sharing capabilities in place, Covad announced in January 2001 that most of its nationwide network was line-sharing enabled and that all consumer orders would be line-shared. With these steps complete, Covad has introduced the most user-friendly three-step self-installation kit that eliminates the need for a DSL technician to install DSL at a consumer's home.

"The introduction of Covad's self-installation kit is a major industry milestone and is another step on our path to a profitable consumer business," continued Moyer. "With all the key elements in place, we now have the ability to more quickly fulfill the demand for our broadband services and provide consumers with a better choice in how and where to get broadband."

About Covad Communications

Covad is the leading national broadband services provider of high-speed Internet and network access utilizing Digital Subscriber Line (DSL) technology. Covad offers DSL, IP and dial-up services through telecommunications carriers, enterprises, affinity groups, PC OEMs, application service providers, and Internet Service Providers that resell Covad DSL to homes and small businesses. Covad's other subsidiaries include Covad Business Solutions, which provides customized broadband solutions directly to small businesses, and Covad's Integrated Services (CIS) division, which enables companies and organizations to become virtual Internet and broadband service providers. Covad services are currently available across the United States in 109 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 U.S. homes and businesses. Corporate headquarters is located at 4250 Burton Drive, Santa Clara, CA 95054. 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 ability to become profitable, plans to expand its network, market opportunities, the cost, timing and scope of the deployment of Covad's network and launching of its services, implementation of line sharing and self-installation, anticipated capital expenditures, expense reductions and other operating results, success of strategic relationships, and the statements made by the chairman 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 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. All forward-looking statements are expressly qualified in their entirety by the "Risk Factors" and other cautionary statements included in Covad's SEC filings.