Vertical Defines the Industry Standard for Unified Communications with the

Vertical Communications, a leading provider of next-generation IP-based phone systems and voice applications, today announced the release of Wave ISM 2.0 - available as a software upgrade for its award winning Wave IP 2500TM and Wave IP 500TM Business Communications Systems. Wave IP's unique Application-Ready architecture means Vertical's Unified Communications (News - Alert) capabilities and suite of voice applications are available 'on-box' so they can be easily deployed and managed without expensive add-on software.

The Wave IP Business Communications System is a comprehensive IP business phone system family designed for enterprises of all sizes. Cost-sensitive small- to medium-sized businesses, and larger distributed organizations seeking to reduce overhead associated with managing business communications can easily transform their legacy telephony infrastructure into an application-rich, next-generation VoIP solution by deploying Wave IP. As a fully integrated solution, Wave IP offers customers ultimate flexibility, featuring unified communications, contact center, call recording, reporting, networking, management, custom call routing applications and IVR - in a single system.

"Today's release illustrates the power of Wave IP's Application-Ready architecture - the ability to deliver high-value voice applications integrated with SIP-based IP telephony as a single system, and made available as a software upgrade to existing customers," said Peter Bailey, President and Chief Operating Officer for Vertical Communications. "Wave IP integrates communications channels and modes in a manner that enhances collaboration, not only between knowledge workers within the organization but also between a company and its partners, vendors and customers. As a result, Wave's Unified Communication features facilitate rich collaboration, simplify and improve business processes, and enhance customer service. Wave´s ease of use and intuitive applications, also means end user adoption rates are industry-leading, resulting in highly successful unified communications deployments and demonstrable return on investment for our customers."

The Wave IP system offers unprecedented functionality

The Wave IP system offers unprecedented functionality and simplicity for an enterprise IP phone system. Release 2.0 offers a number of high-value new capabilities which are available through a simple FREE software upgrade for those customers on software subscription. [Additionally with the 2.0 release Vertical is announcing field trial of Fax Manager (integrated fax server) and Voice Server 2.0 (integrated vXML IVR platform) which now offers both automated inbound and outbound applications.]

"I am extremely excited about Wave 2.0 which is a watershed event for this amazing system. I am already enjoying the Instant Messaging feature along with the ability to manage Auto Attendant greeting over the phone, the Mobile Extension is also an exciting feature," said Tony Goncalves, V.P. of Technology, Voice Systems Inc.

"I am very happy to say Wave 2.0 is a significant 'leap' ahead in features and functionality. Things like Instant Messaging, both individual and group Instant Messaging, are huge and enhance productivity significantly. The new Mobile Extension feature, where users can now use any device, such as their cell, home phone, softphone etc, for their Wave extension is great and allows productivity to continue no matter where the user happens to be. Finally, the persistent notification mechanism in Wave for emergency on call notification and WaveMail where ViewPoint and your email are always completely synchronized for both Contacts and Voicemails adds to the overall value of Wave 2.0!"

"Our focus has and continues to be offering the best Unified Communications solution for businesses. It is critical for UC solutions to offer simple and easy deployment scenarios, intuitive applications to drive end user adoption, a comprehensive feature set that is standard for every user, extensive options for customization, and the ability to easily extend solutions through rich APIs - all of which are key attributes of Wave IP. The bottom line is our customers typically realize a return on investment within 12 months of deployment of a full UC solution - which is an unprecedented for our industry," said Bailey.

The largest telephony vendors in North America

Vertical Communications is one of the largest telephony vendors in North America and a global leader in next-generation IP-based voice and data and digital communications systems for business, with a current installed base of over 200,000 customers. Vertical combines voice and data technologies with business process understanding to deliver integrated IP-PBX and application solutions that enhance customer service and business productivity. Vertical's customers are leading companies of all sizes, from small to large and distributed, and include CVS/pharmacy, Staples (News - Alert) and Apria Healthcare. Vertical delivers its solutions through a worldwide network of over 2,000 business partners. With headquarters in Santa Clara CA, Vertical has sales, engineering and operations facilities in Cambridge MA, Charlottesville VA, Phoenix AZ, Sarasota FL, Munich Germany and Hyderabad India. For more information about Vertical, please call 877-VERTICAL or visit our Website at www.vertical.com.

This document contains forward-looking statements based on current expectations or beliefs, as well as a number of assumptions about future events, and these statements are subject to important facts and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The forward-looking statements in this document address a variety of subjects, including, without limitation, statements about the benefits of certain of the Company's products, including, without limitation, the improved cost and customer service benefits for the Company's business partners and customers; the Company's assumptions about the future performance of V-Connect; the Company's ability to enhance its revenue opportunities in the IP-PBX marketplace; the Company's ability to continue providing products to the IP-PBX marketplace, the Company's ability to continue to certify additional Internet Telephony Service Providers in the IP-PBX marketplace and others. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: the risk that the Company may fail to achieve the anticipated benefits from V-Connect, including, without limitation, failing to obtain the desired benefits for the Company's dealers and customers; the risk that the Company's assumptions about the future performance of V-Connect may prove to be incorrect; the risk that the Company may be unable to become a significant player within the IP-PBX telephony market; the risk that the Company will not be able to certify its products with additional Internet Telephony Service Providers and other risks and assumptions detailed in the Company's filings with the Securities and Exchange Commission, including the most recent filing of the Company's Form 10Q.

Vertical Communications and the Vertical Communications logo and combinations thereof, are trademarks and Vertical Networks and Vodavi are registered trademarks of Vertical Communications, Inc. All other brand and product names are used for identification only and are the property of their respective holders.