[antidote] Covad Antitrust Suit against BellSouth to Go Forward

From: "Daniel Berninger" <dan@xxxxxxxxxxxxxxxxx>
To: <antidote@xxxxxxxxxxxxx>
Date: Fri, 3 Sep 2004 08:50:28 -0400
September 03, 2004 08:00 AM US Eastern Timezone

Covad Antitrust Suit against BellSouth to Go Forward

SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 3, 2004--
  Three Judge Panel of 11th Circuit Court of Appeals Denies BellSouth
Petition to Re-Hear the Company's Appeal before the Entire Court

The United States Court of Appeal for the Eleventh Circuit declined to
BellSouth's request to rehear an earlier ruling that allows Covad
Communications Company (OTCBB:COVD) to pursue certain antitrust and tort
claims against BellSouth Corporation.

In 2000, Covad asserted a variety of antitrust claims against BellSouth
alleging that BellSouth used its monopoly power to engage in a concerted
effort to thwart competition in the Internet access market. The United
States District Court for the Northern District of Georgia dismissed Covad's
claims, holding that Covad's claims were barred by the Telecommunications
Act of 1996. In August 2002, the Eleventh Circuit reversed the district
court's ruling, reinstated Covad's antitrust claims, and remanded the case
back to the district court for further proceedings.

Subsequently, the United States Supreme Court issued a ruling in the Trinko
case, which upheld the dismissal of an antitrust case alleging a single
breach of an incumbent phone company's duty under the Telecommunications Act
of 1996 to share its network with competitors. The Supreme Court
subsequently remanded the 11th Circuit decision for further proceedings in
light of the Trinko decision. In June of this year, a three-judge panel of
the 11th Circuit Court ruled that the Trinko decision did not foreclose key
Covad claims.

BellSouth requested that the full court review the panel's June decision.
This week, the Eleventh Circuit issued an order denying BellSouth's request.

James Kirkland, Senior Vice President and General Counsel of Covad, said:
"The Court's decision confirms that Covad's antirust case can move forward,
and we intend to vigorously pursue our claims."

About Covad

Covad is a leading national broadband service provider of high-speed
Internet and network access utilizing Digital Subscriber Line (DSL)
technology. It offers DSL, T1, 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 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.

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. 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 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 the
results of Covad.

Contacts


 Covad Communications
Kathleen Greene, 408-952-7434 (media)
kgreene@xxxxxxxxx
Susan Crawford, 408-434-2130 (investor relations)
investorrelations@xxxxxxxxx





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[antidote] Covad Antitrust Suit against BellSouth to Go Forward

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