Covad Teams With ACN

SAN JOSE, Calif. -- Covad Communications Group, Inc. (OTCBB:COVD), a leading national broadband service provider of high-speed Internet and network access, today announced a resale agreement with ACN, a competitive local, long distance, wireless, Internet access, gas and electricity service provider for consumers and small businesses.

Under this new line-splitting agreement, Covad will supply ACN consumer and small business customers with Digital Subscriber Line (DSL) broadband connectivity bundled as part of the ACN Advantage calling plan. ACN will purchase the local loop from incumbent phone companies and bundle its local and long distance services with Covad's DSL services. ACN customers will now be able to enjoy the benefits and convenience of purchasing bundled voice and broadband service from one provider.

"Our partnership with ACN to provide bundled telecommunication services further enables Covad to play a significant role in increasing broadband adoption," said Charles Hoffman, Covad president and chief executive officer. "By utilizing Covad's nationwide network, ACN now has the ability to service millions of new customers with the competitive advantage of DSL."

ACN services will be available to the rapidly growing number of ACN Advantage customers in selected states. ACN Advantage is currently available to consumers in the following 13 states where Covad offers services: California (SBC), Florida, Georgia, Illinois, Maryland, Michigan, New York, North Carolina, Ohio, Pennsylvania, Texas, Utah and the territory of Washington DC. ACN also plans new service expansion in the following 16 states where Covad offers services during the first quarter of 2004: Alabama, Arizona, California (Verizon), Colorado, Kentucky, Louisiana, Massachusetts, Minnesota, Missouri, Nevada, New Jersey, Oregon, Pennsylvania, Tennessee, Washington, and Wisconsin.

ACN President Greg Provenzano stated, "We're proud to join forces with Covad and offer consumers a fresh choice for a bundled product that can deliver local and long distance calling services as well as DSL service. Since its launch, ACN Advantage has experienced rapid growth, and we believe that this addition to our bundled package will accelerate momentum even further."

Covad Communications Inc.

ACN Inc.