Covad Announces Hart-Scott-Rodino Clearance for Acquisition by Platinum Equity

  
    
  
  
    
      Covad Communications Group Inc., (AMEX:DVW), a leading national provider 
      of integrated voice and data communications, announced today that the 
      waiting period under the Hart-Scott-Rodino Antitrust Improvements Act 
      had expired on February 19, effectively providing anti-trust clearance 
      for its proposed acquisition by an affiliate of Platinum Equity. The 
      acquisition is still subject to the approval of Covad’s 
      stockholders and the satisfaction of customary closing conditions, 
      including approval of the Federal Communications Commission and state 
      public utility commissions in many of the states in which Covad 
      operates. Under the terms of the agreement, which was unanimously 
      approved by Covad’s Board of Directors 
      following the recommendation of its special committee, an affiliate of 
      Platinum Equity will acquire all outstanding shares of Covad for $1.02 
      per share in cash. Covad’s special meeting of 
      stockholders to approve the merger is scheduled for February 29, 2008.
    
    
      The transaction is expected to close by the end of the second quarter of 
      2008.
    
    
      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.
    
    
      About Platinum Equity
    
    
      Platinum Equity (www.platinumequity.com) 
      is a global M&A&O® firm specialized in 
      the merger, acquisition and operation of companies that provide services 
      and solutions to customers in a broad range of business markets, 
      including information technology, software, telecommunications, 
      logistics, manufacturing, metals services and distribution. Since its 
      founding in 1995 by entrepreneur Tom Gores, Platinum Equity has 
      completed more than 75 acquisitions with more than $23 billion in 
      aggregate annual revenue at time of acquisition.
    
    
      About the Transaction
    
    
      In connection with the proposed merger, Covad has filed a proxy 
      statement with the Securities and Exchange Commission. Investors and 
      security holders are advised to read the proxy statement because it 
      contains important information. Investors and security holders may 
      obtain a free copy of the proxy statement and other documents filed by 
      Covad at the Securities and Exchange Commission’s 
      Web site at http://www.sec.gov.
    
    
      The proxy statement and such other documents may also be obtained free 
      of charge from Covad by directing such request to Covad Communications 
      Group Inc., 110 Rio Robles, San Jose, CA Attention: Investor Relations; 
      Telephone: [phone].
    
    
      Covad and its directors, executive officers and other members of its 
      management and employees may be deemed to be participants in the 
      solicitation of proxies from its stockholders in connection with the 
      proposed merger. Information concerning the interests of these 
      individuals in the solicitation is set forth in Covad’s 
      proxy statement relating to the merger.
    
    
      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 the expected time of consummation of 
      the merger. 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 the 
      ability of the parties to the agreement to satisfy the conditions to 
      consummation of the merger, 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 Covad.