Covad Reduces Price of Consumer Broadband to $39.95 Per Month With $21.95 Introductory Price; Features Always-On Service and Speeds Up to Four Times Faster Than Dial-Up.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--June 19, 2002

Covad Communications (OTCBB:COVD), introduced a digital subscriber line (DSL) consumer broadband service with a special offer of $21.95 per month for the subscriber's first four months and $39.95 thereafter. TeleSurfer(R) Link features DSL's always-on connectivity for easy Internet access and is available throughout Covad's national network either direct from Covad or from participating Internet Service Providers (ISPs). Speakeasy, a national broadband services company, is currently offering the service.

"Covad is taking a leadership role by driving down prices and bringing broadband within easy reach of consumers who have never tried it because it was too expensive," said Charlie Hoffman, Covad president and CEO. "Now, consumers can try an always-on, faster broadband connection for the cost of dial-up. Consumers can easily move from their slow Internet connection that ties up the existing phone line to the always on, faster experience of broadband."

Covad, the leading national broadband services provider utilizing DSL technology, designed TeleSurfer Link to be attractive to current dial-up users with a risk-free offer. In addition to the low price, the Covad JumpStart(TM) Installation Kit with DSL modem is free after rebate and the service comes with Covad's 30-day satisfaction guarantee. A full refund will be given if a Covad customer is not satisfied within 30 days. Subscribers who disconnect their Covad service within 45 days of installation are not eligible for rebate. In addition, if the service is bought directly from Covad, there are no annual commitments or disconnect fees. Offers may vary if this service is purchased through other ISPs.

TeleSurfer Link includes asymmetrical DSL (ADSL) connectivity plus Internet access, the basics for immediate connection and usage of the Internet. The always-on feature eliminates the problems inherent with dial-up Internet access, assuring there will not be hang-ups or broken connections, and allows constant, easy access to entertainment and information. TeleSurfer Link's download service speed is up to 200 kbps or up to four times faster than 56k dial-up, with an upload speed of up to 64 kbps.

"DSL is now available to the majority of consumers in the U.S., but broadband adoption rates are still considerably lower than those for dial-up Internet access," said Pat Hurley, DSL analyst at TeleChoice. "The key to migrating the mass market of dial-up users to DSL is for providers to offer reliable and compelling services at a reasonable price. DSL offers like Covad's TeleSurfer Link, which reduce the price gap between dial-up and broadband, make broadband a more attractive proposition to those users who are still 'on the fence' about switching."

Internet connectivity is available within an average of 10 days from Covad and the easy to use Covad Jump Start Installation Kit is mailed to the consumer upon confirmation of the connection availability, typically arriving within two weeks of placing the order. Installation time usually takes 30 minutes. The service utilizes line-shared technology, allowing consumers to use both the telephone and the DSL connection at the same time.

"We want to make it easy to switch to an always-on connection," said Pat Bennett, Covad executive vice president and general manager, Covad Direct. "There are no hidden charges and no additional services required with your purchase. It's an easy to buy and install service that will make using the Internet painless and experiencing broadband exciting."

The low cost consumer product is also expected be available through participating Covad wholesale partners that focus on the consumer market.

"We expect that our consumer wholesale partners will find this product attractive to their customers," said Chuck Haas, executive vice president and general manager, Covad Wholesale. "In fact, it should help drive demand; our research indicates that the majority of dial-up customers say that dial-up isn't good enough and they want to move to affordable broadband."

"Broadband is changing the way we live our everyday lives," said Mike Apgar, president and CEO of Speakeasy. "Through our partnership with Covad, we will be offering consumers an affordable pathway from dial-up to DSL. Speakeasy is able to take a leadership role in helping spur demand for broadband and ultimately making Internet access more affordable for homes across America."

"Covad is obviously trying to drive demand for its services with TeleSurfer Link," said Hoffman. "This will be a great product that we expect to be profitable for both Covad and its ISPs due to low cost line-shared technology plus our automated back-office expertise that makes installation and maintenance cost effective."

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, T1, managed security, IP and dial-up services directly through Covad and through Internet Service Providers, value-added resellers, telecommunications carriers and affinity groups 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 growth, expected profitability of TeleSurfer Link, expected demand for TeleSurfer Link, adoption of TeleSurfer Link by Covad's wholesale partners, expected court rulings, regulatory developments, revenue and profit expectations, anticipated reductions of costs and losses, expected reductions in cash usage, ability to continue as a going concern, sufficiency of Covad's cash on hand, additional capital requirements, ability to secure additional

financing, ability to become cash flow positive and achieve profitability and the statements made by the president and CEO and the executive vice presidents 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, 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 fewer number of wholesale customers, to successfully migrate end users, Covad's ability 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. 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, 2001 and its Report on Form 10-Q for the period ended March 31, 2002.