Verso to Unveil GR 303 Compatibility at Dynavar University on February 23 in Collaboration with CoSystems to Address Domestic Market Opportunities.

ATLANTA -- Verso Technologies, Inc. (Nasdaq: VRSO), an integrated communications solutions company, announced today it will unveil its first version of GR 303 this week. GR 303 is a standard interface from a Class 5 telephone switch to a digital loop carrier (DLC) that facilitates communications between the legacy PSTN access network and next generation network softswitching equipment. The GR 303 capability enables Verso's Edge Softswitch to interface with embedded network equipment in a carrier's local loop distribution network to VoIP, thereby creating a new market opportunity for the Company. Verso is introducing its new GR 303 solution at Dynavar University, a sales meeting for Dynavar, Verso's largest North American partner. The event will be held on February 23, 2005. Verso intends to have a generally available release of the product in the second quarter of this year.

The GR 303 interface developed by Verso uses the EdgeBlade 4800i product from CoSystems, Inc, a strategic partner of the company. EdgeBlade 4800i offers an enabling Carrier Grade GR 303 to VoIP technology which interfaces to access network equipment used by traditional North America telephony providers. This GR 303 technology is integrated into Verso's BHG Media Gateways. With this GR 303 offering, Verso can broaden its target market to include domestic independent carriers as well as the competitive local exchange carriers (CLECs) by providing them a migration path from legacy hardware to VoIP based next generation solutions. Verso's scalable Softswitch architecture and its ability to grow with carriers' traffic requirements, is a strong fit for this market, particularly in rural regions. The market opportunity for softswitches in North America is approximately $315 million and expected to reach $685 million by 2007.

"As committed in early December, Verso is focused on having a GR 303 compatibility to address the growing opportunities in North America," explained Monty Bannerman, Verso's Senior Vice President Strategic Initiatives. "With CoSystems as our technology partner, we feel that we have a strong solution to address the CLEC opportunity. The marketplace has been looking for a scalable solution that enables carrier migration to VoIP. Our new GR 303 capability, combined with Verso's scalable and distributed architecture, fits extremely well in the competitive local exchange market. Our partnership with Dynavar should result in immediate revenue opportunities for both companies."

"We are pleased that Verso is adding GR 303 capabilities to their already attractive softswitch product offering," said Greg Miller, President and CEO of Dynavar. "We look forward to the opportunities that this new solution will enable us to realize."

"Packetization with VoIP at the access layer in the fixed networks space offers a significant opportunity to Verso and CoSystems," agreed Shirish Patel, CEO of CoSystems.

In connection with GR 303 compliance, Verso has begun the process of becoming certified by the USDA Rural Utilities Service (RUS). RUS infrastructure loans target rural carriers and provide financing of broadband and other advanced services, such as VoIP. Qualified rural operators and service providers can obtain financial aid through this program to purchase equipment from certified vendors.

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 our future financial position, timing of future orders, business strategy and expected cost savings. These forward-looking statements are based on our current beliefs, as well as assumptions we have made based upon information currently available to us. These forward-looking statements may be affected by the risks and uncertainties in our business and are qualified in their entirety by the cautionary statements and risk factor disclosure contained in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2003. We do not assume, and expressly disclaim, any obligation to update these forward-looking statements.

About Verso Technologies

Verso is a leading provider of next generation communication solutions for 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. For more information, contact Verso at www.verso.com or call 678.589.3500