Covista Communications, Inc. Announces Completion of Equity Financing.

Business Editors

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Jan. 8, 2003

Covista Communications, Inc. (NASDAQ symbol: CVST) today announced completion of the previously-reported equity financing approved by shareholders at the Company's Annual Shareholders Meeting held on December 19, 2002.

The financing resulted in an increase in Covista's equity of $13,933,500; elimination of $7,000,000 debt; an increase in fixed assets, primarily telephone switching equipment, of $3,400,000; and a cash infusion of $3,533,500. The equity sources, as previously announced, are $12,500,000 from Covista Chairman Henry G. Luken, III and $1,433,500 from newly-elected Director W. Thorpe McKenzie.

John Leach, President and Chief Executive Officer of Covista, said, "The completion of this equity deal and Mr. McKenzie's agreement to join the Covista Board accomplish two immediate and significant objectives. They demonstrate to our customers, vendors, shareholders and the financial community at large, that Covista has survived the difficult aftermath of September 11, 2001 and will continue to be a premier provider of telecommunications services on a national scale." "In addition," added Mr. Leach, "the financing dramatically improves the Company's balance sheet, an objective toward which we have been working for many months. This is a supreme vote of confidence in the Company's future, for which we are deeply gratified and which we believe will be entirely justified."

About Covista:

Covista is a facilities-based long distance telecommunications, Internet and data services provider with a substantial customer base in the residential, commercial and wholesale market segments. Its products and services include a broad range of voice, data and Internet solutions, including long distance and toll-free services, calling cards, frame relay, Internet access, VPN, directory assistance and teleconferencing services. The wholesale division provides domestic and international termination services to carriers worldwide. Covista currently owns and operates switches in New York City, Newark, New Jersey, Philadelphia, Dallas and Chattanooga, and has announced plans to expand to an additional switch site in Minneapolis. Covista operates Network Operations, call center and information technology facilities in Chattanooga to monitor its switched network and to coordinate its various services. For information on becoming a Covista customer, please telephone [phone] or visit the Company's website at www.covista.com.

Information relating to forward-looking statements:

This press release contains historical and forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements such as statements of the company's plans, objectives, expectations and intentions involve risks and uncertainties. The cautionary statements made in this release should be read as being applicable to all related statements wherever they appear. Statements containing terms such as "believes," "expects," "plans," "projects," "intends," "estimates," "anticipates," or similar terms, are considered to contain uncertainty and are forward-looking statements. The actual results could differ materially from those discussed. Factors that could contribute to such differences include: changes in market conditions and increased competition from other telecommunications and internet service providers, including wireless providers; government regulations; the volatile and competitive environment for internet telephony; advances in competitive products or technologies that could reduce demand for services; availability of transmission facilities; management of growth; customer concentration and attrition; the ability to successfully integrate acquired companies; the ability to successfully develop and bring new services to market; inaccurate or incomplete assumptions on the part of management; and other risks discussed in the company's SEC filings, including form 10-k and form 10-q, which can be accessed at the SEC web site at www.sec.gov.

Readers of this release should understand that it is not possible to predict or identify all such risk factors. Consequently, this list should not be considered a complete statement of all potential risks or uncertainties. Covista does not assume the obligation to update any forward-looking statement, except as is required by applicable law.