Vertical Introduces TeleVantage 7.5

New Multi-site, Automatic Remote Login and Last Agent Routing Capabilities
Lower Costs, Improve Productivity and Enhance Customer Service

CAMBRIDGE, Mass. (July 17, 2006) -- Vertical Communications (VRCC.OB)(“Vertical”), a leading provider of next-generation, IP-based phone systems and applications that help businesses better serve their customers, today announced Vertical TeleVantage® 7.5, the newest release of the company’s award-winning IP-PBX and contact center which provides doubled scalability and increased cost effectiveness for customers.

A feature-rich, software-based solution, TeleVantage combines an innovative IP-PBX with a suite of high-value voice applications, including unified messaging, personalized call-handling rules, comprehensive call recording and a robust contact center. With the introduction of TeleVantage 7.5, Vertical continues to enhance employee productivity and improve customer service for small and medium-sized businesses through automatic remote login for mobile users, last agent routing for call centers, and expanded multi-site capabilities via PSTN and SIP. TeleVantage 7.5 also includes expanded support for IP phones and services, enhanced SIP (Session Initiation Protocol) VoIP functionality, and integration with ViewPoint, the company’s award-winning graphical user interface.

“Vertical is dedicated to helping customers adopt and deploy the latest technology while simultaneously protecting their investment in existing infrastructure,” said Bill Tauscher, Chairman and CEO of Vertical Communications. “TeleVantage continues to add features that provide more value to the customer. By dramatically improving productivity, and enhancing customer service while lowering costs, we are enabling our customers to optimize their own customer relationships.”

Automated Access for Mobile Professionals
TeleVantage 7.5 offers a new level of access and productivity for mobile professionals by extending all the robust functionality of the TeleVantage system to mobile phones, without users having to dial complicated passcodes. “Automatic remote login via caller ID” allows administrators to identify one or more users’ “my numbers” as “auto authenticated,” which will automatically treat those calls as logged into the internal phone system without entering an extension or password. The remote workers thus have access to all the capabilities they have in the office, including voicemail transfer, outbound calls via the PBX, call conferencing and more, as if they were using their office phone. In addition, toll calls are directly linked to the office, rather than the workers’ individual cell phones.

Enhanced Contact Center Routing to Improve Customer Service
Building upon TeleVantage’s existing rich call center capabilities, TeleVantage 7.5 offers Last Agent Routing for call center queues, so that callbacks by the same caller can be routed straight to the agent who handled the previous call. This process eliminates the need for the customer to repeat their issue to multiple agents, thereby enhancing a business’ ability to increase customer satisfaction. Specifically, when Last Agent Routing is turned on for a queue, any call that comes in with the same Caller ID as a previous call is automatically routed to the agent who previously handled it and understands the caller’s history. If that agent is unavailable (on another call, in DND, not taking queue calls, etc.), the call waits a specified duration, then is routed according to the queue's normal distribution algorithm.

Enhanced Multi-site Capabilities
TeleVantage 7.5 Enterprise Manager enhancements include inter-server call support, over both the PSTN and SIP IP networking, as well as increased scalability. PSTN-based inter-server call support leverages a customer’s existing PSTN network to connect calls between multiple networked TeleVantage servers where the data network is not able to support the additional voice traffic. This is beneficial for customers who wish to have a shared phone service among multiple sites, but do not wish to upgrade their WAN network. TeleVantage Enterprise Manager also allows TeleVantage servers to be connected via SIP, as well as via H.323. This allows the use of the cost-effective and robust qualities of SIP communication between multiple TeleVantage servers. Additionally, Enterprise Manager is certified to handle up to 15 nodes and 1500 users, depending on available system resources.

Integration with Vertical’s MP5000
TeleVantage 7.5 is now integrated with Vertical’s MP5000 platform to offer that 100,000-strong installed customer base the full functionality of call center applications through TeleVantage. The integration is the latest step in Vertical’s vision to realize the synergy of its acquisition strategy and to integrate its portfolio of products.

TeleVantage 7.5 also includes many other enhancements designed to further lower the cost of ownership and improve employee productivity, including: SIP enhancements, ViewPoint integration, and certification for the Aastra 480CT cordless SIP phones, the CounterPath PocketPC SIP Softphone and Broadwing’s VoIP services.

TeleVantage 7.5 is currently available through the company’s worldwide network of value-added resellers and systems integrators – called Vertical Business Partners. For more information, please visit www.vertical.com or call 1-800-914-9985.

About Vertical Communications, Inc.
Vertical Communications, Inc. is a leading provider of next-generation IP-based voice and data communications systems for business. 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 and Apria Healthcare. Vertical is headquartered in Cambridge, Mass. and delivers its solutions through a worldwide network of systems integrators, resellers and distributors. For more information, please visit the company’s Website at www.vertical.com.

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"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995.
This release 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 release address a variety of subjects, including, without limitation, the value that may or may not be placed upon our products as a result of our partner relationships, the ability of our products to improve the financial results of our customers, the perceived value our products have for our customers. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: the risk that the use of our products may fail to improve the financial performance of our customers, and the risk that our current and potential customers may fail to perceive the value that we ascribe to our product offerings, or difficulties and other factors detailed in the Company's filings with the Securities and Exchange Commission including its most recent filings on Form 10-K.

Trademark Information
Vertical Communications and the Vertical Communications logo and combinations thereof are trademarks of Vertical Communications, Inc. TeleVantage, InstantOffice and Vertical Networks 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.

Press Contact:
Ann McDonough
Vertical Communications, Inc.
amcdonough@vertical.com
617-354-0600 ext. 194