Covad Continues Build-out of Next-Generation Network in Eight Markets; Partnering With Samsung to Build Nation's Largest ADSL 2+ Network

This phase of the build-out covers Atlanta, Chicago, Los Angeles,New York, Miami, Philadelphia, San Diego and Washington, DC, joiningSan Francisco, San Jose, Seattle and Dallas, where Covad's nextgeneration network is already in service. By the end of 2006, Covadwill offer line powered voice access, and have the capability to offerhigher-speed broadband access, such as ADSL 2+ and G.SHDSL, and newbusiness-class services such as metro Ethernet and bonded T1.

"Covad's next-generation network build-out is progressing on timeand on budget and will allow Covad to leap ahead of our competition inproviding for the total telecommunications needs of our customers withunmatched business-class broadband services," said Claude Tolbert,Covad senior vice president.

Covad has chosen Samsung as its network equipment provider, and isnow the vendor's largest North American customer of network equipment."We're very excited to work with an innovative partner such as Covad,"said Dale Sohn, president of Samsung Telecommunications America."Covad has raised the bar in delivering advanced broadband services."

About Covad

Covad is a leading nationwide provider of integrated voice anddata communications. The company offers DSL, Voice Over IP, T1, Webhosting, managed security, IP and dial-up, wireless broadband, andbundled voice and data services directly through Covad's network andthrough Internet Service Providers, value-added resellers,telecommunications carriers and affinity groups to small andmedium-sized businesses and home users. Covad broadband services arecurrently available across the nation in 44 states and 235Metropolitan Statistical Areas (MSAs) and can be purchased by morethan 57 million homes and businesses, which represent over 50 percentof all US homes and businesses. Corporate headquarters is located at110 Rio Robles, San Jose, CA 95134. Telephone: 1-888-GO-COVAD. WebSite: www.covad.com.

Safe Harbor Statement under the Private Securities LitigationReform Act of 1995:

The foregoing contains "forward-looking statements," which arebased on management's current information and beliefs as well as on anumber of assumptions concerning future events made by management.Examples of forward-looking statements include expectations regardingthe completion of Covad's next-generation network build-out, plans forline-powered voice access services, business-class services and othernew services, as well as the timing, deployment schedule and successof any new services. Readers are cautioned not to put undue relianceon such forward-looking statements, which are not a guarantee ofperformance and are subject to a number of uncertainties and otherfactors, many of which are outside Covad's control that could causeactual results to differ materially from such statements. These riskfactors include operational challenges that may arise as we deploy newservices, difficulties as we rapidly expand, deploy and improve ourservices, the impact of increasing competition, pricing pressures,consolidation in the telecommunications industry, uncertainty intelecommunications regulations and changes in technologies, amongother risks. For a more detailed description of the risk factors thatcould cause such a difference, please see Covad's Forms 10-K, 10-Q,8-K and other filings with the Securities and Exchange Commission.Covad disclaims any intention or obligation to update or revise anyforward-looking statements, whether as a result of new information,future events or otherwise. This information is presented solely toprovide additional information to further understand the results ofCovad.