Martha Sessums
Director of Corporate Communications
(408) 844-7508
msessums@covad.com

Allyson Willoughby
Covad Public Relations
(408) 855-7299
awilloug@covad.com

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

Matt Wells
Alexander Ogilvy Public Relations
(415) 923-1660
mwells@alexanderogilvy.com

Consumers Will Experience Greater Choice of Service Providers, Lower Cost and Faster Installation

SANTA CLARA, Calif. (November 18, 1999) - Covad Communications (Nasdaq: COVD), the leading national broadband services provider utilizing DSL (Digital Subscriber Line), applauds the Federal Communications Commission's (FCC) decision today mandating the phone companies to share their existing telephone lines with companies like Covad, known as competitive local exchange carriers (CLECs). Currently, the phone companies don't share telephone lines, so Covad is forced to lease a second line from the phone companies in order to deliver DSL services to end-users‹a costly, inefficient, and time-consuming process that often limits consumers from selecting a broadband service provider of their choice.

"As a result of today's decision, Covad will be better positioned to provide a greater number of consumers with 'always on' broadband services in a timely manner and at a more attractive price," said Dhruv Khanna, Covad co-founder, executive vice president and general counsel. "Today's decision marks the true dawn of the Telecommunications Act of 1996, as mandatory line sharing is a win/win for everybody involved. It provides consumers with more choice, enables broadband providers like Covad to offer additional services more easily, and helps phone companies demonstrate that they have opened their markets to competition so that they can provide long distance services in their territories. This decision is solid evidence of the FCC's determination to bring advanced services to all consumers through competition."

Line sharing is the typical method the phone companies currently use to deliver DSL data to end-users, utilizing the same telephone line that consumers use for voice communications. Recent line sharing tests ordered by the Minnesota Public Utilities Commission (PUC) and conducted in Minnesota by Covad and other service providers, with US WEST prove that line sharing is technically feasible and no different than how the phone companies offer DSL service. The tests indicate that Covad has the ability to successfully deliver digital data service over the local phone company's voice line, while maintaining high quality for both voice and data.

The FCC order, adopted today, will become effective by the end of the year, but actual implementation by the phone companies will extend into year 2000. After that time, phone companies are expected to provide competitive companies, like Covad, with access to the shared line in a timely manner and at a reasonable cost. To date, phone companies have taken much longer than anticipated to deliver a second line, resulting in excessively long installation cycles.

Along with quicker installation, non-discriminatory pricing of the shared line is expected to put Covad at parity with the phone companies. Currently, Covad is paying phone companies an average of $22 per month to lease a second line, whereas line sharing should lower the price by at least 50 percent based on today's ruling. As a result, end-user costs for Covad's broadband services should be more affordable and competitive with the phone companies' pricing.

About Covad
Covad Communications is the leading national broadband services provider of high-speed Internet and network access utilizing DSL (Digital Subscriber Line). It offers DSL services through Internet Service Providers to small and medium-sized businesses and home users. Covad services are currently available across the United States in 51 of the top Metropolitan Statistical Areas (MSAs) and will be available in 100 MSAs by the end of 2000. At that time, Covad's network will reach more than 40 percent of all US homes and 45 percent of all US businesses. 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.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
The statements contained in this release which are not historical facts may be deemed to contain forward-looking statements, including but not limited to statements regarding overall demand for and acceptance of the Company's services, the intention to deploy our network in new and existing MSAs, the timing and breadth of coverage in each MSA, and the implementation and effect of FCC-ordered line sharing. Actual results may differ materially from those anticipated in any forward-looking statements as a result of certain risks and uncertainties, including, without limitation, the company's dependence on third parties to market and resell our services, intense competition for the Company's service offerings, dependence on growth in demand for DSL-based services, dependence on incumbent local exchange carriers for collocation, unbundled network elements, transport and other facilities, ability to manage growth of our operations, and the need to raise additional capital. For other risks and uncertainties applicable to our business refer to the Company's Securities and Exchange Commission filings.