Covad Safety Net Assists Thousands of NorthPoint Customers; Switch Time is from 13 to 27 Days; Working with Phone Companies on CLEC-to-CLEC Transfers.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--April 2, 2001

Covad Communications (Nasdaq:COVD), the leading national broadband services provider utilizing DSL (Digital Subscriber Line) technology, accepted orders from approximately 10,000 former NorthPoint customers last week and has approximately 15,000 more pending orders under the Covad Safety Net for NorthPoint Users program. The program was introduced March 23 and is designed to help most NorthPoint broadband users on the NorthPoint network, which is currently being turned off, get connected to the Covad network with a modem trade-in and without having to pay for installation.

"Covad is doing everything in its power to help rescue stranded NorthPoint customers," said Covad Chairman Chuck McMinn. "It is important to remember that this situation is about one company that had a problem and not about the DSL industry or customer demand. These NorthPoint customers, and the many more new customers that continue to generate high demand for our services, just want a broadband high-speed, always-on Internet connection. No one wants to go back to dial-up once they experience broadband."

Covad is working with its Internet Service Providers (ISPs) to enter new orders and install new lines as the surest way of helping these stranded NorthPoint customers. Covad's average install time for a new business order in the first three months of 2001 was 27 days from the time the order was accepted. For residential service, installation in March was completed in approximately 13 days from the time the order was accepted, utilizing a "line-shared" line and Covad's self-installation kit. Line sharing is for residential users only and "shares" the voice line with DSL services. Covad is also signing agreements with former NorthPoint ISP resellers so their NorthPoint customers can participate in the Covad Safety Net program.

Covad is also working with the phone companies to develop a process to do CLEC-to-CLEC (competitive local exchange carrier) transfers of lines, which could potentially result in shortening installation times. The process for this type of transfer requires that the phone companies transfer the customers' line connection from NorthPoint's equipment in the central office (CO) to Covad's equipment in the same CO.

"On the surface, this sounds easy, but it has never been done before and takes tremendous coordination between the CLEC and each phone company in every CO with NorthPoint customers," said McMinn. "We have special swat teams working with the phone companies and we hope to have a solution soon, but because of the uncertainties in the CLEC-to-CLEC process, customers should only count on the new order process for now."

The Covad Safety Net Promotion for NorthPoint Users was developed in response to AT&T's purchase of substantially all of NorthPoint's assets that was approved by the United States Bankruptcy Court on March 28, 2001. In its press release, NorthPoint indicated "imminent termination of network services to customers" and its web site urges customers to take immediate action to secure alternative services.

About Covad Communications

Covad is the leading national broadband services 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 109 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 plans to expand its network, market opportunities, the cost, timing and scope of the deployment of Covad's network and launching of its services, plans to migrate lines from NorthPoint, implementation of line sharing and self-installation, anticipated capital expenditures, expense reductions and other operating results, success of strategic relationships, and the statements made by the chairman 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 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. All forward-looking statements are expressly qualified in their entirety by the "Risk Factors" and other cautionary statements included in Covad's SEC filings.