CHATTANOOGA, Tenn.--(BUSINESS WIRE)--June 27, 2002--Covista Communications, Inc. (NASDAQ symbol:CVST - News) today announced that it will relocate its remaining New Jersey operations to the Company's headquarters and back-office facilities in Chattanooga, Tennessee. At the same time, Covista will continue to maintain a sales and support staff in northern New Jersey, at a location separate from the former headquarters in Little Falls.
John Leach, Jr., Covista's President and Chief Executive Officer, and Kevin Alward, Chief Operating Officer of Covista, jointly announced the changes in a letter addressed to certain "Vendors, Customers and Agents" of Covista, dated yesterday. The letter notes that the Company has been operating the TotalTel and Covista businesses for eight years in a facility which occupies over 40,000 square feet. "Throughout the 2002 calendar year, Covista has been reducing the scope of its operations in Little Falls while expanding the Company presence in Chattanooga," the letter states. "We are at the point now at which there is no further need for such a large facility in New Jersey, and it is fortuitous that our Little Falls lease is set to expire in the near future. The reduced real estate and operating costs in the south are a critical component of the Company's plan to return to profitability."
The letter notes that "the closing of the Little Falls facility marks a turning point in the history of TotalTel/Covista as a northeast-based Company." The Company also used the occasion of the letter to "reaffirm our commitments to our loyal customers, agents and vendors in this marketplace." Echoing previous public pronouncements, the letter concludes: "We continue to attract thousands of new customers each month through our direct marketing and alternate distribution channels, and we believe that the consolidation and integration of all our major operating functions in Chattanooga ultimately will enhance both the quality of our services and the Company's value to its shareholders."
About Covista:
Covista is a facilities-based long distance telecommunications, Internet and data services provider with a substantial customer base in the commercial, wholesale and residential market segments. Its products and services include a broad range of voice, data and Internet solutions, including long distance and toll-free services, calling card, 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 additional switch salesgroups in Minneapolis and Las Vegas. 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 (888) 426-8478 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 salesgroup 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.
Covista Communications, Inc.
Thomas Gunning, 973/812-1100
tgunning@covistacom.com
Fax: 973/237-6414