Agreement Gives Covad a Strong Position in Remaining Line Sharing Negotiations Around the Country

Santa Clara, Calif. (April 27, 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 BellSouth to provide high-speed broadband access in BellSouth's nine-state territory. Covad is the only competitive carrier who has reached an agreement with BellSouth, which will pave the way for other competitive data companies to follow suit. This deal follows a similar contract signed this week between Covad and US WEST.

"We are pleased with the BellSouth agreement and look forward to speedy implementation of line sharing throughout the South," said Catherine Boone, Covad Regional Counsel for the BellSouth territory. "The primary benefit of this agreement is a quicker, easier DSL installation for consumers at a more competitive rate and with a greater choice of providers. Another substantial benefit of both the BellSouth and US WEST contracts is that we have stronger footing in our negotiations and arbitrations with the remaining incumbent carriers."

Under the agreement, Covad has locked in an interim monthly loop rate of $6 per line. Ultimately, the final costs associated with line sharing will be set by individual state Public Utility Commissions (PUCs) and all interim costs will be adjusted retroactively. Covad believes that the final cost for the shared lines should be zero dollars per month. The agreement will allow Covad to begin ordering line shared loops on June 6th in many areas of BellSouth's territory and full implementation is expected by the end of July.

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 Digital Subscriber Line data access through another provider. The ruling helped to level the playing field by giving consumers the choice of DSL providers without the burden of a separate line, longer installation, and higher prices.

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 63 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 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.