Comwave Launches Managed Voice Service with Verso Clarent Edge Access Softswitch Solution.

ATLANTA -- Verso is sole source provider of core-to-edge softswitch infrastructure for new service that is expected to have 30,000 subscribers by year-end and 100,000 by the end of 2005

Verso Technologies, Inc. (NASDAQ: VRSO), an integrated communications solutions company, today announced that Comwave (Toronto, Ontario, Canada), a provider of long distance and managed voice services to the U.S. and Canadian marketplaces, has just launched a new IP-based telephone service for home and business users that relies on Verso's Clarent Edge Access Softswitch Solution. Comwave projects that their current Clarent Softswitch Solution, which includes Class 5 Call Manager, Class 4 Call Manager, and BHG 1000 gateways, will be expanded significantly in the near future as subscribers are added; Comwave anticipates 30,000 subscribers by year-end and 100,000 by the end of 2005.

"We project that our new managed voice service will have a hockey stick growth curve because it meets the growing need that both consumers and businesses have for low-cost, feature-rich, and self-managed telephone services," said Yuval Barzakay, vice president of Comwave. "When developing this service we recognized that the key to its success would be a switching and management infrastructure that is easily scalable, market-proven, and simple to manage. After a careful review of several vendors' solutions, it became apparent that Verso's Clarent Edge Access Softswitch Solution stood apart from the competition and provided the best overall value, while meeting all of our requirements."

IP-based managed voice services leverage the power of voice over IP (VoIP) to deliver full-featured telephony at a small fraction of the cost of conventional landline and cellular telephones. Verso's Clarent Edge Access Softswitch Solution makes these services possible. Comwave's product offering is diverse and includes, local phone service, post paid long distance, pre-paid international calling cards, personal 800 numbers, soft-phones, and unlimited packages that are all based on Verso Clarent technology.

"IP-based managed voice services represent an important innovation in the telephony industry and we are working hard to deliver the solutions service providers need to be successful in this emerging marketplace," said Steve Odom, Verso's chairman and chief executive officer. "We are delighted that Comwave selected Verso as their sole source provider of switching infrastructure for this new service and we look forward to partnering with them long into the future."

About Verso Technologies

Verso is a leading provider of next generation communication solutions for carriers and enterprises 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 130 countries around the world. For more information, contact Verso at www.verso.com or call 678.589.3500.

For more information about Comwave please visit www.comwave.net.