Covad Bundles With AT&T

SAN JOSE, Calif. -- Covad Communications (OTCBB:COVD - News) today announced the introduction of Covad's digital subscriber line (DSL) broadband service in AT&T's communications bundle for residential users in Illinois, Ohio and Wisconsin.

Covad's DSL service is bundled with AT&T local and long distance services, offering consumers the advantage of a single, convenient telecommunications package. Launched earlier this year in Indiana, Maryland, Massachusetts, Michigan, New Jersey, New York and Virginia, AT&T plans to offer Covad's DSL service in all states where AT&T provides bundled local and long distance residential services. AT&T provides local phone service to 24 states -- representing 61 million households -- and is currently conducting local service trials in another 11 states.

"Our partnership with AT&T to provide a bundle of telecommunication services enables Covad to play a critical role in increasing the adoption of broadband," said Charles Hoffman, Covad CEO and president. "We look forward to continue working with AT&T to improve consumer choice and provide innovative new services."

The ability to bundle AT&T local and long distance services with Covad's DSL service is based on a process called line splitting. AT&T "splits" the loop it buys from local phone companies to offer AT&T local and long distance with Covad's DSL service on the same line.

Covad's nationwide network is the only national DSL footprint. Covad's network enables ISPs and CLECs alike to partner with Covad for their broadband needs. A growing number of companies nationwide including AT&T, AOL, EarthLink, Sprint, Speakeasy, MCI, MegaPath and XO work with Covad to power their consumer and business broadband offerings.

Covad Communications Inc.

AT&T Corp.