Vertical Wave IP 2500™ Receives Product of the Year Award from INTERNET TELEPHONY® Magazine

Industry’s first next-generation IP PBX with Integrated Portfolio of Business Communications
Applications honored for Outstanding Innovation

CAMBRIDGE, Mass., January 31, 2008 – Vertical Communications, (VRCC.OB)(“Vertical”), a leading provider of next-generation, IP-based phone systems and voice applications that help businesses better serve their customers, announced today that Technology Marketing Corporation’s (TMC®) INTERNET TELEPHONY magazine has named Wave IP 2500™ Business Communication System as a recipient of its 2007 Product of the Year Award.

“After just a few months in the market, we are delighted at Wave’s rapid acceptance within our nationwide dealer channel, and honored to be recognized by such an esteemed organization as TMC, “ said Peter Bailey, senior vice president product management and business development for Vertical Communications. “Small- to medium-sized business (SMB) customers are clearly ready for Wave, the only integrated solution that delivers unified communications to the desktop, offers a built-in portfolio of ready-to-run productivity applications, and provides a viable path for businesses migrating from digital-to IP-based communications. Wave IP 2500 offers all of these capabilities, and more.”

The Vertical Wave IP 2500™ Business Communications Solution is the industry’s first comprehensive IP PBX with the unique Applications Inside™ architecture. Cost-sensitive SMB customers as well as larger organizations can dramatically reduce the overhead once associated with managing business communications. Scalable from 10 to 500 users on one system, Wave provides customers with the flexibility to support all users regardless of where they're working - at headquarters, in a branch office, at home, or on the road.

Integrated productivity applications include Visual Voicemail, Unified Messaging, Presence Management, and Call Recording. Optional add-on applications in development include Fax Manager, Contact Center, Conference Manager, and Voice Server. A range of powerful management tools plus an extensive array of digital and IP endpoint options make Wave the only complete solution for SMB customers. Wave also supports cost-effective SIP trunking through a number of Vertical-certified SIP service providers.

“Vertical has proven they are committed to quality and excellence while addressing real needs in the marketplace. INTERNET TELEPHONY is pleased to grant a 2007 Product of the Year Award to Wave IP 2500,” said Rich Tehrani, TMC President and Editor-in-Chief of INTERNET TELEPHONY magazine.  We’re proud to honor their hard work and accomplishments and look forward to more innovative solutions from Vertical in the future.”

About Vertical Communications
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 and Apria Healthcare. Vertical delivers its solutions through a worldwide network of over 1800 business partners. With headquarters in Cambridge MA, Vertical has sales, engineering and operations facilities in Charlottesville VA, Phoenix AZ, Santa Clara CA, Sarasota FL, Munich Germany and Hyderabad India. For more information about Vertical, please call 877-VERTICAL or visit our Website at www.vertical.com.

About INTERNET TELEPHONY magazine
INTERNET TELEPHONY has been the VoIP Authority since 1998™. Since the first issue in February of 1998, INTERNET TELEPHONY magazine has been providing unbiased views of the complicated converged communications space. INTERNET TELEPHONY offers rich content from solutions-focused editorial content to reviews on products and services from TMC Labs. INTERNET TELEPHONY magazine has a circulation of 225,000 including pass-along readers.  For more information, please visit www.itmag.com.

About TMC
Technology Marketing Corporation (TMC) publishes Customer Interaction Solutions, INTERNET TELEPHONY, Unified Communications, and IMS Magazine. TMCnet, TMC's Web site, is the leading source of news and articles for the communications and technology industries. Ranked in the top 6,000 most visited Web sites in the world by alexa.com*, TMCnet serves as many as three million unique visitors each month. TMC is also the first publisher to test new products in its own on-site laboratories, TMC Labs. In addition, TMC produces INTERNET TELEPHONY Conference & EXPO, and Call Center 2.0 Conference. For more information about TMC, visit www.tmcnet.com. (*alexa.com is an amazon.com company that ranks Web sites by their traffic levels. Neither alexa.com nor amazon.com is affiliated with TMCnet.) For more information about TMC, visit www.tmcnet.com.

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Press Contacts:
Ruth Seigel
Vertical Communications, Inc.
rseigel@vertical.com
480-443-6313

Jan Pierret
TMC
203-852-6800, ext. 228
jpierret@tmcnet.com
                                                                                               

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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.

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