Covad Moves into Texas to Provide a DSL Alternative to the Local Telephone Company for Business and Home Users.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 2, 1999--

Covad Broadens the Choice of DSL Providers in Austin,

Houston, Dallas and Ft. Worth

Today, Covad Communications (Nasdaq:COVD), a leading broadband access and services provider, announced the availability of its Digital Subscriber Line (DSL)-based services in the Austin, Houston, Dallas and Ft. Worth metropolitan areas.

With this announcement, Texas consumers have their first alternative to the local telephone company for a high-speed always-connected DSL line that eliminates the wait for dial-up connections.

"Covad's launch into Texas is the result of several progressive steps taken by the Public Utility Commission of Texas," said Tom Wagner, president and general manager of Covad's Southern Region. "The PUC is creating a welcoming environment to broadband telecommunications competition in Texas. In coming here, we've invested heavily to build telecom infrastructure that will bring new and exciting telecommunications products and services at affordable prices to Texans."

Covad's services are available in Austin, Houston, Dallas and Ft. Worth through the following regional Internet Service Providers (ISPs): -0-

--   Internet America, Inc. (Nasdaq:GEEK)(www.airmail.net)
--   Insync Internet Services, Inc. (www.insync.net)
--   Jump.net (www.jump.net)
--   Micro-Media Solutions, Inc. (MSI)(OTC BB:MSIA)(www.msiaustin.com)
--   Internet Global Services, Inc. (www.iglobal.net)

-0-

Houston business and home users can also get Covad's services through PDQ.Net, Inc. (www.pdq.net) and GST Telecommunications, Inc. (Nasdaq:GSTX)(www.gstcorp.net).

Covad's DSL services are also available in Texas through Flashcom (www.flashcom.com) a national ISP.

Network coverage in the Austin metropolitan area will service approximately 85% of small businesses and 80% of home users. In addition, the Covad network will service Georgetown, Wimberley, and Round Rock.

In addition to the Houston metropolitan area, Covad's services will be available in Spring, Laporte, Cypress, Channelview, Stafford, Rosenberg, Pasadena, Tomball, and Seabrook and will service approximately 85% of the small businesses and 80% of the home users in these areas.

In Dallas and Ft. Worth, Covad's services will be available to approximately 70% of small businesses and 60% of home users. In addition to the Dallas/Ft. Worth metropolitan area, Covad's network will also serve Grand Prairie, Denton, Plano, Duncanville, Carrollton, Allen, Frisco, Richardson, Irving, Mesquite, Garland, McKinney, Roanoke, Coppell, Richland Hills, Arlington, Euless, Farmer's Branch, Wedgewood, Kennedale, and Grapevine.

Providing seamless access to the Internet and corporate networks, Covad's DSL services give customers a dedicated and secure connection using the copper phone wires found in businesses and homes today. Because DSL is a high-speed connection that is always available, the need to dial in each time a user wants to browse the Internet or download email is eliminated. Customers are spared the delays, busy signals and non-connects typically associated with dial-up service.

With data connections up to 50 times faster than 28.8K modems, Covad's TeleSpeed(R) service is a great solution for businesses. For home users, Covad's TeleSurfer(TM) service provides users with connections up to 25 times the speed of most dial-up solutions providing the highest quality and widely available residential option for high-speed Internet access.

TeleSurfer service provides residential users privacy, flexibility and reliability advantages over the services offered through cable companies. Unlike cable companies that use a shared line between neighbors, a connection through Covad is dedicated to a single user through a point-to-point network.

About Covad

Covad Communications Company is a leading provider of high-speed Internet access made possible by offering DSL services to large enterprise customers and through Internet Service Providers to small and medium-sized businesses and home users.

Covad services are currently on-line in 20 regions, encompassing 47 Metropolitan Statistical Areas. Service is available in the San Francisco Bay Area, Los Angeles, Seattle, Sacramento, New York, Boston, Washington D.C., Baltimore, Chicago, Philadelphia, San Diego, Atlanta, Detroit, Minneapolis/St.Paul, Denver, Portland, Ore., Raleigh/Durham, Austin, Houston, and Dallas/Ft. Worth metropolitan areas. Covad has announced its plans to offer its services in a total of 22 regions, which will encompass 51 metropolitan statistical areas nationwide.

Covad Communications Company and its affiliates, doing business as Covad Communications Company, are wholly owned subsidiaries of Covad Communications Group, Inc. (Nasdaq:COVD). Corporate headquarters is located at 2330 Central Expressway, Santa Clara, CA, 95050. 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 release, which are not historical facts may be deemed to contain forward-looking statements, including, but not limited to, deployment of the Company's network in new and existing regions and the timing and breadth of coverage in each region. Actual results may differ materially from those anticipated in any forward-looking statements as a result of certain risks and uncertainties, including, without limitation, the Company's dependence on strategic third parties to market and resell its services, intense competition for the Company's service offerings, dependence on growth in demand for DSL-based services, availability of collocation space, loops and facilities, ability to manage and scale operations, and other risks and uncertainties detailed in the Company's Securities and Exchange Commission filings. The Company disclaims any obligation to update information contained in any forward-looking statement.