Covad Supports Economic Development with the Launch of the Covad Broadband Entrepreneur Program.

Business Editors/High-Tech Writers

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

Microentrepreneurs to Receive Grants and Covad Broadband Service

to Assist in Business Development

Covad Communications Group, Inc. (OTCBB: COVD), a leading national broadband service provider of high-speed Internet and network access, today introduced the Covad Broadband Entrepreneur Program, its national community outreach program which will focus on minority, women, and disabled microentrepreneurs.

The Covad Broadband Entrepreneur Program is in collaboration with the Association for Enterprise Opportunity (AEO) to provide both monetary and Covad broadband service grants to local microentrepreneurs in Arizona, California, Illinois, Massachusetts, Michigan, New Mexico, Pennsylvania, and Tennessee.

A microenterprise is a business with five or fewer employees, $35,000 or less in start-up capital and without access to the traditional banking sector. A study conducted in 1999 and published by the ACCION Network in 2002 reported that there are approximately 13 million microentrepreneurs in the United States.

Covad will select 10 local non-profit organizations working to support micro-lending and entrepreneurship. Throughout 2003 these non-profits will select a total of 144 microentrepreneurs who are in need of broadband access. The chosen microentrepreneurs will each be given a $500 grant and complimentary Covad broadband service, worth up to $8,300, for one year. Covad believes that these grants can be sufficient capital to cover fixed start-up costs and facilitate the launch of a variety of microentrepreneur businesses.

"Entrepreneurial spirit and innovation are core elements of Covad's company culture," said Charlie Hoffman, president and CEO of Covad Communications. "Covad recognizes the opportunity for the microenterprise industry to accelerate success and magnify their business impact through the use of broadband."

"Microenterprise is critical to the business foundation of America. Covad's support of economic development and entrepreneurship through the Covad Broadband Entrepreneur Program reflects their innovation and entrepreneurial spirit," said Bill Edwards, executive director of the Association for Enterprise Opportunity. "Our partnership with Covad leverages their broadband expertise with our experience in developing entrepreneurship."

At the May 2004 AEO Annual Conference in Philadelphia Covad will give the "Covad Broadband Entrepreneur Program of The Year Award" to one of the local non-profit organizations responsible for awarding the Covad grants to local microentrepreneurs. The winner will receive a $5,000 endowment from Covad.

For more information regarding the Covad Broadband Entrepreneur Program please visit http://www.covad.com/companyinfo/communityoutreach.shtml

For more information about the Association for Enterprise Opportunity please visit http://www.microenterpriseworks.org

About Covad Communications

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 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 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. 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.