Fujitsu and Vertical Form POS IP Telephony Partnership; First Companies to Integrate POS Platform with VoIP Telephone System.

NEW YORK -- Fujitsu Transaction Solutions Inc. and Vertical Communications, Inc. (Vertical) (AFST:OB) have formed a partnership to develop and market a point-of-sale (POS) IP telephony solution on Fujitsu's TeamPoS family of terminals. It is the retail industry's first integrated "soft" telephony solution on a POS terminal.

The new system is an extension of Fujitsu's GlobalSTORE POS, cash management and back-office application, integrated with Vertical's InstantOffice retail telephony system and software running on a TeamPoS 2000 or 3000 terminal with integral telephone handset or wireless handset/microphone combination.

The solution eliminates the space required for a separate telephone on the service or check-out counter and avoids the cost of purchasing and supporting separate telephone devices. It also reduces or eliminates separate wiring for the phone system. Telephone system management is simplified and treatment of incoming calls is more flexible during transaction processing. Retail establishments can now extract untapped value from the third sales channel -- incoming phone calls. Designed for large, multi-store enterprises, InstantOffice consolidates voice and data networking applications into a single platform that can be managed centrally.

"Leveraging Fujitsu's and Vertical's POS and networking capabilities, this soft telephony solution provides retailing companies with an innovative telecommunications alternative that improves efficiency and lowers operating costs," said Austen Mulinder, president and CEO of Fujitsu Transaction Solutions Inc. "This is another example of Fujitsu's ongoing quest to relentlessly reduce costs in the retailing environment."

"The combination of Fujitsu's POS system and Vertical's soft phones is another example of our companies' commitment to work together to deliver tangible value to retail customers," said Bill Tauscher, Vertical's chairman and CEO. "This solution will not only help improve customer service and responsiveness, but is yet another means by which our mutual customers can strengthen their brands and bottom lines."

Both companies will demonstrate the new system running on a Fujitsu handheld iPAD device at their respective booths during NRF, Jan. 16-17, 2006 at the Jacob K. Javits Convention Center. Fujitsu is at Booth #1613 and Vertical is at Booth #2013.

About Vertical

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, Household International 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.

About Fujitsu Transaction Solutions

Fujitsu Transaction Solutions Inc., a wholly owned subsidiary of Fujitsu Limited (TSE:6702), collaborates with retailing companies to relentlessly reduce their costs and facilitate compelling consumer interactions driving improved profitability for its customers. Fujitsu's Pervasive Retailing(TM) approach enables companies to minimize the time, cost and risk of creating interoperability between disparate applications and devices that support a multitude of consumer touch points. Fujitsu's offering includes solution software, point-of-sale store technology, U-Scan self-checkout systems, self-ordering systems and multi-vendor lifecycle services. Customers include Canadian Tire, Chevron Corporation, Hannaford Bros., H-E-B, Kroger, Loblaws, Nordstrom, Payless ShoeSource, Regal Cinema, Ross Dress for Less, Staples, Stop & Shop and The TJX Companies, among others. The company also has a 50/50 joint venture with Retalix Ltd. (Nasdaq:RTLX) in StoreNext Retail Technologies LLC, the No. 1 supplier of retail technology to independent grocers and regional chains. Web site: us.fujitsu.com/retailing.

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