Covad Safety Net Program is Designed to Reduce the Switching Costs for Rhythms' Users Nationwide Who May Lose Their Broadband Connections.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 10, 2001

Limited Promotion Offer -- Free Installation and Modems

Covad Communications (OTCBB:COVD), the leading national broadband services provider utilizing DSL (Digital Subscriber Line) technology, today announced the availability of the Covad Safety Net Program for Rhythms' business users. The program is being extended to Rhythms Net Connections' business broadband users who may lose their Internet connection on the Rhythms network. The program allows these users to affordably migrate to the Covad network.

Rhythms' business broadband users may be eligible for rebates of up-front installation and/or equipment charges on new Covad TeleSpeed 144, 192, 384, 768, 1.1, and 1.5 DSL services ordered through Covad.net (www.covad.net) by October 31, 2001. The rebate will vary between $225.00 and $584.00 depending on the type of Covad.net DSL service ordered. The customer must comply with all the rules and regulations of the rebate program and must return the appropriate rebate form to Covad's fulfillment center by December 31, 2001. Upon verification of eligibility, Covad will send the customer a check in the amount of the rebate to which the customer is eligible. For more information about the Covad.net promotion, Rhythms customers can contact Covad at 1-800-GO-COVAD, or visit www.covad.com/covadsafetynet/rhythms/.

"Covad expects to be a long term national player that maintains its leadership position by providing the best in broadband services," said John McDevitt, executive vice president of Covad sales and marketing. "By offering this program to Rhythms' end users who wish to choose Covad, we continue our commitment to offer an independent choice for broadband services and get affected businesses back on track as quickly and easily as possible."

Covad is also working with Rhythms' Internet Service Provider (ISP) partners that are also Covad ISPs to develop special incentives to allow them to switch their business users to Covad DSL services at reduced cost. Full details of the ISP partner program, as well as a current list of participating ISPs, are available at www.covad.com/covadsafetynet/rhythms/.

About Covad Communications

Covad is the leading national broadband service provider of high-speed Internet and network access utilizing the latest Digital Subscriber Line (DSL) technology. It offers DSL, IP and dial-up services directly and 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: 1-800-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 ability to file its financial results, become profitable, plans to expand its network, market opportunities, the cost, of the deployment of Covad's network and launching of its services, Covad's ability to recover past amounts paid to local exchange carriers, implementation of line sharing and self-installation, anticipated capital expenditures, expense reductions and other operating results, and the success of strategic relationships. 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.