Suluh Lukoskie
Public Relations
(408) 844-7754
slukoski@covad.com

Nick Kormeluk
Covad VP Investor Relations
(408) 844-7457
InvestorRelations@covad.com

Joe Sheffo
Alexander Ogilvy Public Relations
(408) 923-1660
jsheffo@alexanderogilvy.com

SANTA CLARA, Calif. Ñ(August 31, 1999) - Covad Communications (Nasdaq: COVD), a leading broadband access and services provider, today argued against Bell Atlantic's claims before the New York Public Service Commission that it has met the preconditions enumerated in Section 271 of the Telecommunications Act of 1996 and should therefore be allowed to provide inter-LATA long-distance services. Representing Covad at the Commission proceedings were Dhruv Khanna, Executive Vice President and General Counsel and Susan Jin Davis, Assistant General Counsel. They participated in presentations where representatives from telecommunications companies, broadband services companies and consumer advocacy groups argued against Bell Atlantic's request.

"Bell Atlantic's record, particularly as it concerns broadband services, clearly shows that it has not yet met the standard of parity access set forth in the Telecom Act," said Dhruv Khanna. "Our records show that more than 50% of our loops are not being provided on time, making it clear to us that this filing is premature. Expanding access to broadband services is a national priority that should not be overlooked as there is a need for these vital services."

If approved by state and federal regulators, Bell Atlantic would be able to provide long-distance services before it allows Covad timely access to local loops and software connections to Bell Atlantic's operating support services, which would speed up installations of data service. This approval could also delay adherence to the FCC's recent ruling regarding terms of collocation in central offices.

"In spite of Bell Atlantic's dismal performance to date, Covad remains committed to meeting the growing consumer demand for broadband services in New York and across the country. We are convinced we will be able to continue to satisfy our customers notwithstanding a current uneven playing field in Bell Atlantic territory," said Bob Knowling, Covad's President and Chief Executive Officer. "While Covad believes that the interests of consumers in New York will be best served by the Commission's rejection of this premature application, Covad's expansion will continue to accelerate in any event."

About Covad
Covad Communications is the leading national broadband access and services provider of high-speed Internet and network access. It offers DSL services through Internet Service Providers to small and medium-sized businesses and home users, and direct to large enterprise customers. Covad services are currently available across the United States in the top Metropolitan Statistical Areas (MSAs.) Covad Communications and its affiliates, doing business as Covad Communications Company, are wholly owned subsidiaries of Covad Communications Group, Inc. (Nasdaq:COVD). Corporate headquarters is located at 2330 Central Expressway, Santa Clara, CA, 95050. Telephone: 1-888-GO-COVAD. Web Site: www.covad.com.