8-K

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

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                                    FORM 8-K

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15 (d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934


        Date of report (Date of earliest event reported): August 19, 2004
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                          Covista Communications, Inc.
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             (Exact name of registrant as specified in its charter)


                                                         
New Jersey                                     0-2180                 22-1656895
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(State or other Jurisdiction                (Commission          (I.R.S. Employer
of Incorporation  or Organization)          File Number)         Identification No.)


721 Broad Street, Chattanooga, TN                                       37402
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(Address of principal executive offices)                              (Zip Code)


(423) 648-9700
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Registrant's telephone number, including area code














ITEM 7.  FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
AND EXHIBITS.

(c) Exhibits

As described in Item 9 of this Report, the following Exhibit is furnished as
part of this Current Report on Form 8-K: 99.1 Press Release of Covista
Communications dated, August 19, 2004.

Item 9.  REGULATION FD DISCLOSURE

On August 19, 2004 Covista Communications, Inc. (the "Company") issued a press
release disclosing the close of a material financial transaction. A copy of this
press release is being furnished as Exhibit 99.1 to this Current Report on Form
8-K.

The Company pursuant to Item 12 of Form 8-K is furnishing this Current Report
on Form 8-K and the press release attached hereto, insofar as they disclose
the sale of certain assets and resignation of a Company officer.

In accordance with General Instruction B.6 of Form 8-K, the information in this
Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed "filed"
for the purposes of Section 18 of the Securities Exchange Act of 1934, as
amended, or otherwise subject to the liability of that section, nor shall it be
deemed incorporated by reference in any filing under the Securities Act of 1933,
as amended, except as shall be expressly set forth by specific reference in such
a filing.

The annexed press release supplements the Company's disclosure of its sale of
certain assets and resignation of a Company officer.

                                    SIGNATURE


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                          Covista Communications, Inc.


                              By: /s/ Frank Pazera

                         ----------------------------------------
                               Name: Frank Pazera
                         Title: Chief Financial Officer



Date:  August 19, 2004

EX-99

For Immediate Release
Covista Closes PAETEC Transaction

Thursday August 19, 2004

CHATTANOOGA, TN--(BUSINESS WIRE)--August 19, 2004--Covista Communications, Inc.
(NASDAQ: CVST), a provider of bundled telecommunication services for residential
and small business customers, today announced that it has completed the
previously announced transaction to sell selected long distance commercial
customers, switches and related facilities to PAETEC Communications, Inc.,
a Fairport, New York based competitive local exchange carrier.

The price for the selected customers and assets was approximately $13.5 million,
of which approximately $8.4 million was received at closing. The remaining
balance of the purchase price is to be paid in two installments, with the last
payment due in nine months, subject to final adjustment. A portion of the
initial proceeds was used to repay Covista's revolving credit facility with
Capital Source Finance. After closing, Kevin Alward resigned from Covista as
Chief Operating Officer and a member of the Board of Directors, to pursue other
opportunities.


In a second transaction, Covista expects to sell selected local commercial
customers to PAETEC for an additional cash price of approximately $1.5 million.
Management anticipates executing definitive agreements related to this
transaction within the next 30 days.

Mr. John Leach, Chief Executive Officer of Covista stated, "Closing this
transaction represents a significant achievement for Covista. We have vastly
improved our balance sheet with a strong cash position and zero bank debt.
Additionally, we have solidified the focus of our operations both geographically
and strategically. For the balance of 2004, we plan to build on the momentum we
have created by extending our local service footprint to additional markets in
the Northeast and Mid-Atlantic regions as well as certain states in the
Southeast." Mr. Leach continued, "The Board of Directors expressed appreciation
for Mr. Alward's efforts on behalf of the Company and best wishes in his future
endeavors."

About Covista:

Covista is a facilities-based provider of telecommunications services with a
substantial customer base, principally residential and small to medium sized
businesses. Its products and services include a broad range of voice, data and
Internet solutions, including long distance and toll-free services, local dial
tone and features, calling cards, frame relay, Internet access, VPN, directory
assistance and teleconferencing services. Covista currently owns and operates
switches in Chattanooga, Dallas and Minneapolis. Covista operates Network
Operation; 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 800-805-1000 or
visit the Company's website at www.covista.com.

About PAETEC:

PAETEC Communications Inc., a subsidiary of PAETEC Corp., is a communications
solutions provider offering broadband services, including advanced voice and
video, enhanced data and communications management services to medium-sized and
large businesses, colleges and universities, hospitals, hotels, governmental
organizations and associations. The company boasts one of the highest customer
retention rates in the industry, and recently achieved the number two ranking on
the acclaimed Deloitte Fast 500 list of fastest growing technology companies in
North America.









Headquartered in Fairport, N.Y., PAETEC serves customers in 27 U.S. markets,
including: Albany, Baltimore, Boca Raton, Boston, Buffalo, Chicago, Connecticut,
Delaware, Fort Lauderdale, Long Island, Los Angeles, Miami, New Hampshire, New
Jersey, New York City, Orlando, Orange County, Philadelphia, Pittsburgh,
Poughkeepsie, Rhode Island, Rochester, San Diego, Northern Virginia, Syracuse,
Washington D.C., and Western Massachusetts.

For more information, visit the PAETEC website at www.paetec.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 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; 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 rapid 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.


Contact:
Frank Pazera
Executive Vice President and Chief Financial Officer
Covista Communications, Inc.
Tel: (423) 648-9500
Fax: (423) 648-9502
E-mail: fpazera@covista.com