Covista Communications, Inc. Announces Intention to Market Local Telecommunications Services and Completion of Credit Facility.

News Editors

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--April 29, 2003

Covista Communications, Inc. (NASDAQ symbol: CVST) today announced that it intends to expand its present array of telecommunications products to include local calling service in certain markets.

At the same time, Covista announced that it has closed on an $8 million credit facility with Capital Source Finance, LLC.

The service, which will utilize the Unbundled Network Element Platform (UNE-P) authorized by the Telecommunications Act of 1996, is expected to be available first in New Jersey and later in other markets throughout the United States. The Company anticipates that the first local customers should be able to subscribe for the service during the month of May 2003.

The credit facility provides Covista with immediate availability of up to $7 million, to be used as needed by the Company for capital expenditures or working capital. The facility is secured by the Company's operating assets.

John Leach, President and Chief Executive Officer of Covista, said, "Covista's entry into the local services market will be a welcome enhancement to the products and services offered by our Company. It will enable our customers, both residential and commercial, to obtain all their wired telecommunications services from a single source, with more efficient billing and coordinated customer support. Our customers have been asking for a local product, and this is the logical next step in the Company's ongoing transformation into one of the nation's premier, value-priced telecommunications providers."

Regarding the credit facility, Mr. Leach commented, "The agreement with Capital Source provides a valuable cushion to assist the Company as we continue to execute on our business plan, including the launch of our local product. As we add thousands of new customers each month to our existing base of residential and commercial subscribers, we believe we can continue to achieve positive cash flow."

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, 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.