Document Details Shares to be Issued in Transaction

SAN JOSE, Calif.--(BUSINESS WIRE)--March 25, 2004--Covad Communications Group (OTCBB:COVD) today filed a Form 8-K with the Securities and Exchange Commission providing additional information about its proposed acquisition of GoBeam, Inc., a privately owned provider of Voice over Internet Protocol (VoIP) services, including details regarding shares that would be issued in the transaction.

On March 3, Covad signed an Agreement and Plan of Merger to acquire GoBeam, Inc., in all-stock transaction valued at $48 million. The actual number of shares to be issued will be based on a formula derived from the trading price of Covad's share prices prior to the closing of the transaction. The agreement also contains provisions that limit the maximum number of shares to be issued in the transaction to approximately 20.2 million shares of common stock.

The completion of the transaction remains subject to customary closing conditions contained in the merger agreement and is expected to occur in May of this year.

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