Covad Stockholders Approve Proposed Acquisition

  
    
  
  
    
      Covad Communications Group, Inc. (AMEX:DVW) announced the results of its 
      Special Meeting of Stockholders held today in Santa Clara, California. 
      At the meeting, holders of a majority of the company’s 
      outstanding shares approved the agreement and plan of merger providing 
      for Covad’s acquisition by an affiliate of 
      Platinum Equity, as required by applicable law.
    
    
      The acquisition remains subject to 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. Covad confirmed that the required FCC and state 
      commission filings have been completed and that it is awaiting approval 
      from the FCC and two remaining state commissions. While Covad cannot 
      predict with certainty the timing of these approvals, it currently 
      expects them within the next 30 to 60 days. Under the terms of the 
      merger agreement, an affiliate of Platinum Equity will acquire all 
      outstanding shares of Covad for $1.02 per share in cash.
    
    
      About Covad
    
    
      Covad is a leading nationwide provider of integrated voice and data 
      communications. The company offers DSL, Voice Over IP, T1, Web hosting, 
      managed security, IP and dial-up, wireless broadband, 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.
    
    
      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, including the 
      expected time of receipt of required regulatory approvals. 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.