Covad Introduces TeleSoho DSL Services for Teleworkers and Small Businesses; Offers Business Class High Speed Internet Access With Convenience of Self-Install Kit.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 24, 2001

Covad Communications (OTCBB:COVD), the leading national broadband services provider utilizing DSL (Digital Subscriber Line) technology, today introduced TeleSoho(SM) DSL, a service designed for small businesses, businesses with remote locations and corporate teleworkers. It combines the high download speeds and multiple PC support often required for businesses with the lower cost, convenience and fast installation of a line-shared DSL connection with a self-install kit.

TeleSoho is an asymmetrical (ADSL) service offering speeds up to 1.5 Mbps download and up to 384 Kbps upload for up to four users. It can support multiple computers and one fixed Internet Protocol address. The efficiency of a line-shared service combined with the simplicity of the TeleSoho(TM) DSL Installation Kit leads to a quicker installation process which averages between 10-15 days, while allowing customers to install TeleSoho DSL at their convenience.

"Covad's TeleSoho DSL meets the rising demand for a cost-effective, easy-to-use business class broadband service," said Bryan Bennett, senior manager of product marketing for Covad. "We are enabling small or home-based businesses and large businesses with teleworkers to increase productivity while decreasing costs. We expect TeleSoho to be a popular choice because businesses will have the flexibility and freedom to install their DSL as their schedule permits. Additionally, we now have a service that is perfect for any home user who is looking for an easy home LAN solution."

The TeleSoho DSL Installation Kit is similar to Covad's proven JumpStart Self-Install Kit(TM), which guides buyers through a simple three-step installation process. Easy instructions feature pictures that provide the user with the information needed for a successful and swift installation process. The installation process includes preparing the small business or home by attaching DSL blockers (or filters) to every telephone; connecting the DSL router to the computer; and simple two-step configuration of the router using a browser-based interface. It is expected that the installation process will take approximately 30 minutes. A professional installation option is available for an additional fee.

Covad's TeleSoho is currently available from Covad directly at www.covad.net and through MegaPath Networks (www.megapath.net), one of the nation's leading providers of business-class broadband access and network services. It is also available through other select Covad ISPs. Providers offering the TeleSoho self-install kit also have the opportunity to customize and co-brand the kit.

"Covad's TeleSoho enables us to continue fulfilling the demand for broadband services used by small businesses and the growing number of corporate telecommuters we service," said Dan Foster, SVP of Sales and Marketing for MegaPath. "Empowering our customers by putting the installation process into their own hands results in significant cost and time savings."

Covad expects the cost for TeleSoho DSL to be approximately $89-$109 per month for Internet access. Additional services are extra.

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 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 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 Dec. 31, 2000 and in Covad's SEC Quarterly Report on Form 10-Q for the quarter ended June 30, 2001.