Covista Communications, Inc. Announces Shareholder's Approval of Equity Sale.

Business Editors

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Dec. 19, 2002

Covista Communications, Inc. (NASDAQ: CVST) announced today the Shareholder's have overwhelmingly approved the issuance and sale of up to 4,350,000 shares of its common stock for $2.867 per share to its Chairman, Henry G. Luken, III in exchange for a $12,500,000 equity infusion consisting of the conversion of $7,000,000 debt owed to Mr. Luken and the contribution by him of $2,200,000 cash and $3,300,000 in assets, primarily telecommunications switching equipment.

In addition, Shareholders also elected Directors and approved the Company's 2002 Equity Incentive Plan and the selection by the Company's Audit Committee of Deloitte & Touche, as the Company's independent auditors for its fiscal year ending January 31, 2003.

At a Board of Director's meeting held following the Shareholder's Meeting, the Board authorized, with Mr. W. Thorpe McKenzie, a newly elected Director abstaining, the issuance of up to one million shares which includes the sale of 500,000 shares of Common Stock to Mr. McKenzie, for $1,433,500 or $2.867 per share.

John Leach, President and CEO of Covista, stated, "This investment represents the confidence that both Messrs. Luken and McKenzie have in the future of Covista. This infusion of capital greatly improves Covista's Balance Sheet and substantially increases Shareholders' Equity. With the Company's return to positive cash flow in the quarter ended October 31, 2002 and the increase in sales, I am confident that Covista has accomplished a significant turnaround and should continue to reflect improvements in its operations. We are proud to welcome W. Thorpe McKenzie to our Board and to the Company's Audit Committee. With his background in investment and finance, he brings invaluable expertise to our Board."

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, Chattanooga, and 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.