NETOPIA SIGNS CONTRACT WITH COVAD FOR END-USER DSL ROUTERS.(Covad Communications)(Company Business and Marketing)

Netopia, Inc. (Nasdaq:NTPA), Alameda, Calif., a leader in providing DSL Internet equipment and E-commerce Web platforms to small and medium-size businesses, has announced that it has signed a 14-month agreement to supply Covad Communications (Nasdaq:COVD), the leading national DSL broadband services provider, with DSL (Digital Subscriber Line) routers for end-users.

The agreement will allow Netopia to extend its DSL market reach substantially. Netopia also today announced that Covad has certified Netopia DSL routers for interoperability with Covad's network.

"We are pleased to work with Netopia to provide additional CPE options as we continue to expand the range of our DSL service," said Richard Wong, vice president of marketing at Covad Communications. "Netopia offers a highly reliable product with an array of value-added features that respond to the business needs of the end-user."

Covad is the nation's leading DSL broadband services provider. Its services are currently available in the US in 51 of the top metropolitan statistical areas (MSAs) and it plans to expand into 100 MSAs by the end of 2000. Covad offers DSL services through Internet Service Providers to small and medium-size businesses and home users.

Netopia's strengths in the fast-growing DSL marketplace include the following:

-- Netopia DSL Internet equipment offers an unparalleled array of value-added, business-class features. For Covad, Netopia has created a product offering with a range of built-in and optional features that can be tailored to meet specific end-user business requirements.

-- With its recent purchase of StarNet Technologies, Netopia has assumed a leadership position in the development of VoDSL (Voice over DSL), voice/data integration, and other new technologies which are expected to dominate the DSL marketplace in coming years.

-- With its creative, portal-based marketing initiatives and its history of building strong DSL partnership marketing programs that bring together CLECs, ISPs and VARs, Netopia has enjoyed consistent success in marketing DSL.

-- Over the past four years, Netopia has built a strong track record of providing its ISP partners with highly reliable products and excellent customer service.

"We have successfully deployed Netopia routers for a number of years and we're very pleased that we can now offer a Netopia solution to customers whose DSL circuits are provided by Covad," said Henry R. Nothhaft, chairman, president and CEO of Concentric Network.

"Netopia routers offer excellent reliability, in addition to an array of built-in and optional features that really meet the Internet business needs of our small and medium-size business customers."

Covad expects to begin offering the Netopia R7200-T SDSL Router and the Netopia R3100-T IDSL Router to its DSL customers by early December. These DSL routers will come equipped with a built-in firewall, an 8-port hub, and an array of local and remote management and diagnostic features. In addition, a number of add-on kits will be available to Covad DSL customers.

These include the Aux Port Backup Kit, which provides support for auxiliary port ISDN or analog dial backup, and the Secure VPN Kit, which adds secure VPN using PPTP and ATMP.

"We look forward to working with Covad to bring DSL Internet access to hundreds of thousands of small and medium-size businesses throughout the country," said Alan Lefkof, Netopia's president and CEO. "Our mutual ISP associations and our shared vision of the DSL marketspace promise to make the Netopia/Covad relationship a very successful one."

About Netopia

Netopia, Inc. develops, markets and supports Internet and electronic commerce infrastructure for small and medium-size businesses. Netopia's DSL equipment and Web e-commerce platforms enable businesses to easily and cost-effectively connect to the Internet, establish and enhance their Internet presence, and conduct business and electronic commerce on the Web.

With the Netopia Web site and E-commerce platform, the company has established Web-based services with Citigroup's Bizzed.com (NYSE:C), Cendant Corporation (NYSE:CD), Netscape Netcenter, Intuit (Nasdaq:INTU), France Telecom (NYSE:FTE), Freeserve (Nasdaq:FREE) and Concentric Network (Nasdaq:CNCX).

With its Netopia DSL Router family, the company has established interoperability with central office equipment from Copper Mountain Networks, Lucent Technologies (NYSE:LU) and Nokia (NYSE:NOK); and has established strategic distribution relationships with leading CLECs including NorthPoint Communications, Rhythms NetConnections and Jato Communications; and with hundreds of ISPs including France Telecom, Telecom Italia (NYSE:TI), Bell Atlantic (NYSE:BEL), PSINet (Nasdaq:PSIX), Verio, UUNet (Nasdaq:WCOM), Earthlink (Nasdaq:ELNK) and Concentric Network.

Headquartered in Alameda, Netopia's common stock is traded on the Nasdaq national market under the symbol "NTPA." Further information about the company can be obtained via phone 510/814-5100, fax 510/814-5021 or on the web at www.netopia.com.