Agreement Sets Monthly Line Rate at $0.00

Santa Clara, Calif. (May 15, 2000) - Covad Communications (NASDAQ: COVD), the leading national broadband services provider utilizing DSL (Digital Subscriber Line) technology, has entered into a regional agreement to share phone lines with Bell Atlantic to provide high-speed broadband access in Bell Atlantic's territory. The Covad-Bell Atlantic contract follows recent similar agreements the company has reached with BellSouth and US WEST. Contracts are also being negotiated with Sprint, SBC, Inc., including its Southwestern Bell and Ameritech subsidiaries, and Bell Atlantic merger-partner GTE.

Under today's agreement, Covad locked in a monthly line rate of $0.00 per line along with other monthly recurring charges totaling less than $3.00 and various nonrecurring charges. All other competitive DSL providers in the Bell Atlantic region will pay the same rates. The rates associated with line sharing will be subject to final review by individual state Public Utility Commissions (PUCs). Bell Atlantic also committed to have its entire territory ready to begin line sharing installations no later than early July.

"We are pleased to have completed the third of four major agreements necessary to implement the FCC's line sharing mandate," said Dhruv Khanna, executive vice president, general counsel and secretary of Covad. "Today's agreement is good news for consumers in Bell Atlantic's territory and, with negotiations ongoing with SBC, puts us that much closer to bringing a choice of broadband service to consumers across the entire country."

In November of 1999, the Federal Communications Commission (FCC) required local incumbent phone companies to share existing phone lines with competitive carriers, including Covad, by June 6, 2000. Line sharing allows consumers to use their existing phone line for both normal phone service provided by a local phone company and for high speed DSL data access through another provider. The ruling is expected to open the door to increased competition, expanded consumer choice, and streamlined service delivery.

About Covad
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 64 of the top Metropolitan Statistical Areas (MSAs) and are expected to 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. 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 market demand for the Company's services, the impact of line sharing on DSL installation intervals and pricing, the ability to continue to build out central offices with deployment of the Company's network in new and existing regions, the ability to scale our business, anticipated decisions from regulatory bodies, and the timing and breadth of coverage in each region. 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 strategic third parties to market and resell its 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 and transport, ability to manage growth of our operations and other risks and uncertainties detailed in the Company's Securities and Exchange Commission filings.