[Reference]

About DSL ( Digital Subscriber Line)
DSL is a proven technology that takes advantage of standard copper telephone lines to provide, reliable, high-speed Internet access. Users can receive speeds of up to tens of times faster than traditional dial-up methods such as analog modems and ISDN. Furthermore, unlike traditional dial-up connections, DSL delivers continuous "always on” access. In the past two years, DSL has established itself as a mass market technology around the world and is being deployed in almost all major countries in North America, Europe, and Asia. In Japan, the regulatory and technical environment is being cleared to allow DSL to be served nationwide.

About ACCA Networks KK
ACCA Networks, incorporated and started by five private founders in March 2000, and registered as a Type II Telecommunications carrier in Japan, will provide broadband access solutions for Internet and other network service providers in Japan. ACCA will initially focus on offering DSL lines to business and residential users through major ISPs and network service providers. ACCA plans to launch pilot services in selected areas in Tokyo this fall and expand to nationwide coverage starting early 2001.

About Covad Communications Company
Based in Santa Clara, CA, Covad Communications (Nasdaq: COVD) provides ultra-fast, affordable, "always on" broadband access services utilizing DSL (Digital Subscriber Line) technology that connects home and business users to the Internet. Covad's flagship services, TeleSurferSM for residential customers and TeleSpeed™ for small businesses, are readily available to consumers and businesses through a host of over 250 leading Internet Service Providers (ISPs). TeleSpeed Remote and Virtual Private Network over DSL services are also available to corporations with remote workforces who need a fast, affordable and secure method of connecting "teleworkers" to the Internet and corporate network. Covad services are also available through application service providers, PC/OEM manufacturers, and enterprise companies. Covad also offers virtual broadband services. These services are available as a result of the company's acquisition of LaserLink.net, a leading provider in the rapidly growing area of branded Internet access.

As the leading national DSL broadband services provider, Covad's network currently covers more than 41 million homes and businesses in major Metropolitan Statistical Areas (MSAs). Covad services are available across the United States in 96 of the top Metropolitan Statistical Areas (MSAs). Covad services will be available in 165 MSAs by the end of 2000. At that time, Covad's digital network will reach more than 45 percent of all US homes and 50 percent of all US businesses. Covad currently has 1700 Central Offices (COs) service-ready and expects to have 2400 COs service ready by the end of 2000.

About NTT Communications Corporation
NTT Communications, a subsidiary of Nippon Telegraph and Telephone Corporation, provides long distance and international telecommunications services reaching over 200 countries worldwide. Headquartered in Tokyo, NTT Communications’ Arcstar services operate in about 50 countries and have significant presence in Asia Pacific, North America and Europe. Arcstar global services provide managed data, multimedia and Internet services to some of the largest companies in the world. NTT Communications’ investment in its Managed Services, IP Infrastructure and Internet Portal will meet the growing demand for electronic commerce-based services from its business customers and home users. NTT Communications, with the OCN brand, is already one of the largest ISPs in Japan.

About IGNITE Japan KK
Ignite Japan, a 100% subsidiary of the Ignite Group, a Silicon Valley venture capital firm specializing in information technology and Internet investments, provides hands-on support in the areas of business development and strategy. Ignite Japan provides investments through its IT 2000 fund, which it co-manages with Tokio Marine Capital Co., Ltd. ACCA is IT 2000's first investment. Ignite Japan has already invested 70 million yen (640,000 USD) in incubation support in July, and this agreement will bring the total investment to 170 million yen (1.6 million USD).


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 the intention to deploy Covad's network in new and existing United States MSAs, the timing and breadth of coverage in each MSA, Covad's ability to deliver audio, video and other high-bandwidth applications and Covad's ability to build a network that can bypass Internet congestion. 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 incumbent local exchange carriers for collocation, unbundled network elements, transport and other facilities, development of necessary technologies and operations, ability to manage growth of Covad's operations, and the need to raise additional capital. For other risks and uncertainties applicable to Covad's business refer to our Securities and Exchange Commission filings.