Covad Introduces TeleDefend Firewall and TeleDefend VPN/Firewall Security Services; Services Simplify Security for Small Businesses.

Business Editors/High-Tech Writers

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

Covad Communications (OTCBB:COVD), the leading national broadband services provider utilizing DSL (Digital Subscriber Line) technology, today introduced TeleDefend(SM) Firewall and TeleDefend(SM) VPN/Firewall, a fully managed firewall and VPN service designed specifically for small and medium sized businesses. Both products are supported by Covad's Security Operations Center (SOC) which monitors the customers' location 24 hours a day, seven days a week. The SOC enables businesses to implement a simple, affordable managed security solution to help protect their vital information, reducing information technology (IT) staffing costs.

According to a 2001 study conducted by the Computer Security Institute and the Federal Bureau of Investigations, 85 percent of all companies surveyed experienced a network breach last year and 64 percent of these businesses reported financial losses as a direct result. With TeleDefend Firewall and TeleDefend VPN/Firewall, Covad has taken into consideration both the significant need for security along with the typical limited resources that a smaller business has to devote to security issues.

"The major advantage that these TeleDefend services provide our small business customers is peace of mind," said Eden Godsoe, marketing group product manager for Covad. "At the end of the day, they know that their always-on Internet connection is very secure. These services are smart choices for businesses who don't want the hassle of selecting complex, confusing and expensive security solutions and would rather spend more time focusing on their business."

"Small businesses are becoming increasingly aware of the importance of incorporating robust security solutions into their broadband access," said Pat Hurley, TeleChoice DSL analyst. "Offers like Covad's TeleDefend, which makes security easy to implement and maintain, are definitely filling a need in the small business broadband market."

With no up-front costs for ordering or installation, a TeleDefend Self-install Kit arrives in as few as five business days from the date of ordering. It is pre-configured and ready for immediate self-installation. Similar to the award-winning DSL JumpStart(TM) Self-Install Kit, the TeleDefend Self-Install Kit provides the customer with a simple three-step installation process. Once the customer successfully installs the kit, Covad's specially trained IT professionals at the SOC configure the system and start proactively monitoring the customers' Internet security.

The SOC specialists provide reports on all attempted attacks to the customers' network. This includes various types of potential attacks, including port scans, address sweeps, and IP spook attacks. The system is designed to reduce attacks such as denial of service, which can be deadly for a business, and attacks by hackers who may be trying to get into proprietary or confidential information. The SOC also provides support during installation and handles all future configuration tuning.

TeleDefend Firewall and TeleDefend VPN/Firewall utilize a custom NetScreen device, based on the NetScreen 5XP platform. Designed specifically to filter all traffic to and from a company's network, the NetScreen device provides a higher level of performance and security than software or router solutions. Additionally, the security system is routinely upgraded with new security updates as available, providing leading edge technology without any proactive monitoring by the customer. The NetScreen device has an unlimited user capability, meaning there is no limit to the number of seats or computers it can support within a local area network.

"The entire service line is designed to simplify the security experience," said Godsoe. "From the self-install kit to the SOC's behind-the-scenes support to ongoing upgrades and patches, we make it easy for the customer. In fact, if the customer doesn't even know they are using TeleDefend, we are doing our job right."

TeleDefend Firewall starts at $150 per month; TeleDefend VPN/Firewall starts at $175 per month. Information is available through Covad's direct channel at www.covad.com or http://www.covad.com/businessservices/teledefend.shtml.

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 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.