Covad Wireless Expands Coverage in Los Angeles Market to Reach More Than 175,000 Small Businesses

Covad Wireless, a subsidiary of Covad Communications Group, Inc. (AMEX: DVW), a leading national provider of integrated voice and data communications, today expanded its coverage in the greater Los Angeles area to include key areas of the Los Angeles Basin and the San Fernando Valley. Covad Wireless operates the largest fixed wireless broadband network for businesses in Los Angeles and can reach more than 175,000 small businesses in the area. "This important network expansion significantly increases Covad Wireless’ addressable market to include almost 90 percent of all businesses in the Los Angeles market, where we are already the preeminent provider of fixed wireless broadband,” said Patrick Bennett, Covad executive vice president of wireless and market development. "With competitive pricing, fast installation times and flexible high-bandwidth options, Covad’s fixed wireless broadband solution is designed to meet the growing needs of Los Angeles business customers.” Covad Wireless is adding three new base stations in this expansion. The first is in the Mid-Wilshire area, also known as the "Miracle Mile” business district. The second is in West Los Angeles, home to many of the entertainment industry’s leading companies. The third is in a key area of the North San Fernando Valley where business growth has been strong in recent years. The expansion also includes the outfitting of an existing base station with LMDS equipment, a point-to-multipoint technology that allows Covad Wireless to more cost-effectively provide high-capacity connections of up to 20 Mbps. These high-capacity connections are relied upon by area companies that use or provide bandwidth-intensive applications. Los Angeles-based Bernards, one of Southern California’s leading builders, has used Covad Wireless for years to connect its onsite project offices. Wireless broadband is ideal for providing high-speed access to the construction industry’s temporary, hard-to-reach locations. The network expansion in the San Fernando Valley now allows Covad Wireless to serve Bernards’ headquarters with a 4.5 Mbps Super-T connection. "Before Covad Wireless, it was a hassle getting broadband connectivity out to our onsite construction locations,” said Robert Martinez, Information Services Manager for Bernards. "Connections that used to take a few weeks to install now happen in days, at much less cost. When we found out Covad Wireless would be expanding its reach to the North San Fernando Valley, we wasted no time switching to their service for our headquarters.” With this expansion, the Covad Wireless network in Los Angeles is now fully backhaul redundant, matching the company’s situation in other markets. Covad Wireless, formerly known as NextWeb, Inc., operates one of the nation’s largest fixed broadband wireless networks focused on serving business customers. Its solutions range from T1 replacement to high-capacity service with data speeds of up to 100 Mbps. In addition to serving customers in the greater Los Angeles area, Covad Wireless serves over 4,000 small and medium-sized businesses in the San Francisco Bay Area, Chicago, and Las Vegas. For more information on Covad Wireless services, please visit www.covadwireless.com or call 1-866-805-1630. About Covad Covad is a leading nationwide provider of integrated voice and data communications. The company offers DSL, Voice Over IP, T1, broadband wireless, Web hosting, managed security, IP and dial-up, and bundled voice and data services directly through Covad's network and through Internet Service Providers, value-added resellers, telecommunications carriers and affinity groups to small and medium-sized businesses and home users. Covad broadband services are currently available across the nation in 44 states and 235 Metropolitan Statistical Areas (MSAs) and can be purchased by more than 57 million homes and businesses, which represent over 50 percent of all US homes and businesses. Corporate headquarters is located at 110 Rio Robles San Jose, CA 95134. Telephone: 1-888-GO-COVAD. Web Site: www.covad.com. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The foregoing contains "forward-looking statements" which are based on management's current information and beliefs as well as on a number of assumptions concerning future events made by management. Examples of forward-looking statements include expectations regarding Covad’s ability to meet the specific needs of Los Angeles business customers and to cost-effectively provide high-capacity connections. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside Covad's control that could cause actual results to differ materially from such statements. These risk factors include our ability to rapidly expand and deploy these services, the impact of increasing competition, pricing pressures, consolidation in the telecommunications industry, uncertainty in telecommunications regulations and changes in technologies, among other risks. For a more detailed description of the risk factors that could cause such a difference, please see Covad's 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 any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of Covad.