Capsule Communications, a Covista Company, is a switched-based interexchange carrier providing long distance telephone communications services to small and medium sized business and residential accounts. In addition to its core long distance business, Capsule Communications also provides inbound toll-free long distance as well as other telecommunications services including pre and post paid calling cards, private line services and dedicated services. The Company plans to expand its offerings to include other value-added services, such as ISP services, to improve customer satisfaction and enhance revenue growth.

Capsule Communications, a Covista Company, was founded in 1989 and went public in 1991 through a reverse merger into a public shell corporation.

The Company originates, transports and terminates the majority of its calls through its network located in the northeast corridor between Maine and Norfolk, VA, and in California, Nevada and Arizona. Approximately 89% of the Company's monthly billed calls are processed through its own switches strategically located in Philadelphia, PA and Oakland, CA.

The Company markets its services via three distinct sales channels,

• through a network of independent Agents
• through a direct sales force
• through its carrier sales group