Citel Technologies Acquires Assets of MCK Communications from Verso.

ATLANTA -- Verso Technologies, Inc. (Nasdaq: VRSO), an integrated communications solutions company, announced that it has sold the assets of MCK Communications, Inc. (MCK), a leading provider of distributed voice solutions for the extended enterprise, to Citel Technologies (Citel).

Citel issued Verso a $3.5 million secured interest-bearing note, payable over three years and has assumed certain obligations associated with the MCK business. In addition, most of the Verso employees working in the MCK business will become employees of Citel or its subsidiaries.

"As we discussed in our mid-quarter update call and as we have stated over the last several months, Verso intends to focus on next generation carrier solutions," said Steve Odom, Verso's Chairman and Chief Executive Officer. "To that end, we believe that the disposition of the MCK business makes sense at this time. Verso has benefited from the relationship with MCK with regard to our carrier strategy, specifically in gaining a better understanding of the opportunity of handset technologies that can be sold through carriers. Furthermore, we believe that the MCK business will be better positioned for growth as part of a company that focuses on the enterprise segment. We wish all the MCK employees the best."

"We are delighted to add MCK to our product portfolio," stated Michael Robinson, Citel's Chief Executive Officer. "The MCK products are an excellent fit for Citel in terms of technology and platforms, and acquiring access to MCK's distribution channels will expand the market reach of our award winning CitelLink Handset Gateway product line. Citel welcomes MCK's talented employees to our team. Together we will accelerate our mission to deliver advanced telephony applications to a broad range of enterprises in a very practical and cost-effective manner. Given the synergies between MCK and Citel, we expect this to have a positive impact on Citel's earnings from day one."

As a result of this transaction, Verso expects to record a loss in the range of $3.5 to $3.75 million on the disposal of MCK in the fourth quarter of 2004. For the first nine months of 2004, the MCK business generated $5.7 million in revenue and posted a loss of $612,000, before corporate services allocation, after a charge of $1.1 million for depreciation and amortization.

About Verso Technologies

Verso is a leading provider of next generation communication solutions for carriers and service providers that want to lower their communication infrastructure costs and enhance service capabilities without sacrificing reliability, scalability and quality of service. With an extensive solutions portfolio that extends from the core to the edge of a network, Verso enables customers to leverage legacy technology investments towards converged networks that are faster and more cost-effective to deploy and easier and more flexible to manage. Verso solutions are currently deployed in thousands of customer networks in over 120 countries around the world. For more information, contact Verso at www.verso.com or call 678.589.3500.

About Citel Technologies

Citel Technologies is a global provider of unique IP telephony and converged communications solutions, which bridge the two worlds of traditional PBX telephones and next generation IP PBX and SIP systems. Citel works in partnership with world leading telecom equipment manufacturers and suppliers with the goal of simplifying and accelerating the transition to next generation communications solutions. The CitelLink Handset Gateway product line enables enterprise customers to migrate their telephone networks from traditional PBX systems to IP Telephony while still retaining their existing traditional business telephones, thereby saving half the cost of migration. Citel is a private company with offices in Nottingham, England (UK), and Seattle, Washington (USA). Citel's products are sold through a global network of independent dealers and computer resellers, as well as through strategic relationships with industry leaders such as 3Com, BroadSoft, Mitel Networks, and Sylantro Systems. For more information, please visit www.citel.com.

About MCK

MCK Communications develops and markets distributed voice solutions that cost-effectively create a more open and interconnected business telephony environment, providing enterprises with extended business reach, lowered communications costs and options for flexible migration to next generation environments, while empowering individuals with portable business telephony. With more than 400,000 ports shipped worldwide, MCK EXTender products are highly-scalable distributed telephony gateways capable of simply and cost-effectively implementing telework, virtual call center, or other remote program.

Forward Looking Statements

Certain statements contained in this release that are not statements of historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words - "believe," "expect," "anticipate," "intend," "will," and similar expressions are examples of words that identify forward-looking statements. Forward-looking statements include, without limitation, statements regarding future financial position, timing of future orders, business strategy and expected cost savings. These forward-looking statements are based on current beliefs, as well as assumptions made based upon information currently available. These forward-looking statements may be affected by the risks and uncertainties in Verso's business and are qualified in their entirety by the cautionary statements and risk factor disclosure contained in Verso's filings with the Securities and Exchange Commission, including Verso' annual report on Form 10-K for the year ended December 31, 2003. Verso does not assume, and expressly disclaims, any obligation to update these forward-looking statements.