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First Line-Sharing Tests Completed By Covad in Minnesota

Contact:

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

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

CLEC and US WEST Tests Ordered by Minnesota PUC are Successful

GOLDEN VALLEY, Minn. (Nov. 2, 1999) - The nation's first test over a shared telephone line between US WEST and Covad Communications (Nasdaq: COVD) was successfully completed today in Minnesota, announced Covad. The line-sharing test was ordered by the Public Utilities Commission (PUC) of Minnesota on September 22, 1999 to determine if Covad, the leading national digital subscriber line (DSL) broadband services provider, could successfully deliver digital data service over the phone company's voice line, while maintaining high quality for both data and voice.

Line-sharing is the typical method the telephone companies use to deliver DSL data to end-users, utilizing the same telephone line that consumers use for voice communications. Currently, the phone companies don't share lines, so companies like Covad are forced to lease a separate line from the telephone companies to deliver data. As a result, the end-user is required to pay for a second line if they want a choice of providers for high-speed DSL broadband Internet access to their home or business.

"We are pleased and very excited about the early line-sharing test results as it's a huge step in the right direction for both Covad and for consumers across the country who want high-speed, 'always-on' broadband Internet access," said Dhruv Khanna, Covad's general counsel and executive vice president. "If all goes as planned, citizens of Minnesota will be the first to experience the benefits of line-sharing. Line-sharing will reduce end-user costs, decrease installation time, and allow consumers to choose the best service provider for data and voice services."

The successful result of the precedent-setting tests proves that line-sharing is feasible. Ultimately, line-sharing is expected to lower the cost of Covad's high-speed residential DSL service and give consumers a greater choice of broadband service providers by eliminating the need for a second line for data service.

Covad completed its lab tests for the Minnesota trials on October 19. The field tests ordered by the Minnesota PUC, which began today in Minnesota, are expected to run for two weeks. Final test results must be submitted to the Minnesota PUC no later than November 22.

About Covad
Covad Communications is the leading national DSL broadband 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. 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 market demand for market acceptance of the Company's services, the intention to deploy our network in new and existing MSAs and the timing and breadth of coverage in each MSA. 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.



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