Covad Provides DSL Service for AT&T's New High-Speed Internet Service Offer.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--July 30, 2003

Covad Communications (OTCBB:COVD) today announced the launch of Covad's digital subscriber line (DSL) broadband service in AT&T's communications bundle for residential users.

Covad's DSL service is bundled with AT&T local, and long distance services offering consumers the advantage of a single, convenient telecommunications package. This new offer is now generally available in the state of New York. AT&T plans to offer Covad's DSL service in several additional states this year with plans to eventually offer it in all states where AT&T provides bundled local and long distance residential services.

"AT&T local and long distance customers now have access to Covad's world-class DSL network," said Charles Hoffman, Covad CEO and president. "Our agreement with AT&T helps us leverage the critical ingredients of our nationwide broadband network so AT&T can provide another compelling choice to their customers. Several thousand customers in New York have already been migrated to the new bundle. We're excited about the growth opportunity as AT&T and Covad bring broadband to more consumers nationwide."

The ability to bundle AT&T local and long distance services with Covad's DSL service is based on a process called line splitting. AT&T "splits" the loop it buys from local phone companies to offer AT&T local, long distance and Covad's DSL service on the same line.

Covad's nationwide network is the only national DSL footprint. Covad's network enables ISPs and CLECs alike to partner with Covad for their broadband needs. A growing number of companies nationwide including AT&T, America Online, EarthLink, Sprint, Speakeasy, MegaPath and XO work with Covad to power their consumer and business broadband offerings.

About Covad

Covad is a leading national broadband service provider of high-speed Internet and network access utilizing Digital Subscriber Line (DSL) technology. It offers DSL, T1, managed security, hosting, IP, dial-up services and bundled voice and data services directly through Covad's network and through Internet Service Providers, value-added resellers, telecommunications carriers and affinity groups to small and medium-sized businesses and home users. Covad operates the largest national DSL network with services currently available in 96 of the top Metropolitan Statistical Areas (MSAs). Covad's network currently covers more than 40 million homes and business and reaches approximately 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 the statements made by the president and chief executive officer of Covad 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, future FCC rulemaking, the terms and interpretations of the decision announced February 20, 2003 by the FCC, 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 smaller number of wholesale customers, to successfully migrate end users, 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. Covad disclaims any obligation to update any forward-looking statement contained in this press release. 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, 2002 and the Quarterly Report on Form 10-Q for the quarter ending March 31, 2003, along with Current Reports on Form 8-K filed from time to time with the SEC.