Vertel Announces Availability of New Version of Mediation Framework Software.

Business Editors & High-Tech Writers

WOODLAND HILLS, Calif.--(BUSINESS WIRE)--Aug. 1, 2001

Vertel Corp. (Nasdaq:VRTL), a leading provider of middleware for telecommunications networks, today announced that it began shipping the latest release of its Mediation Framework software in the second quarter 2001.

This release enhances the performance and ease-of-use of the software by enabling JavaScript(TM), which reduces the number of mapping rules that must be configured. Additionally, the Mediation Framework includes new management tools such as an improved user-friendly graphical user interface and the ability to control the software via any commercial SNMP management application.

Depending upon the version of Mediation Framework that the customer initially licensed updates may be included in the initial fees and, in that case, would not represent additional revenue.

These updates address growing market demands and requirements from customers that previously purchased the software including Nokia, Lucent, Kisan Telecom, the U.S. Department of Defense, Alcatel, T-Systems, T-Nova and a previously unannounced customer, Delta Info-Comm Co. Ltd. of South Korea.

Delta, which initially purchased the software licenses for Mediation Framework in the third quarter of 2000, is using the updated version to integrate a network management system for the communications of the high-speed rail system under development in South Korea.

The express train system is designed to connect all major cities in South Korea, similar to Train Grande Vitesse, the high-speed rail lines in France. In an effort to provide a flexible mechanism for mediating diverse management interfaces, Delta chose Vertel's Mediation Framework to integrate devices based on both the CORBA(R) and CMIP protocols.

"This new software release demonstrates our commitment to continue with product innovation," said Cyrus Irani, president and CEO of Vertel. "We believe that the upgrades cut development time even further for systems integrators that must interface with multi-vendor technologies, such as Delta on their high-speed rail project.

"We are pleased to finally have permission to disclose this Delta project as we believe it shows how versatile our Mediation Framework software can be across converging technologies and applications even outside those of typical telecommunications projects."

"Delta is very happy to have selected Vertel to provide the Mediation Framework for our involvement in the South Korea high-speed rail project," said C.H. Kim, CEO of Delta. "Based on our past and continuing relationship, we knew Vertel's Mediation Framework product would be high-performing at the outset and that they would upgrade the performance and add functionality going forward. This is exactly what we need to deliver a high quality product for our customer."

About Delta Info-Comm Co. Ltd.

Delta Info-Comm Co. Ltd. is a systems integrator that offers switching hardware and network management software. Their customer base includes Korea Telecom, Hanaro and various departments of the South Korean Government. The company trades on the KosDaq under the code number 39850. The company is headquartered in Seoul, South Korea.

About Vertel

Vertel is a leading provider of middleware for the telecommunications industry. Vertel provides high performance, reliable middleware for connecting modern, distributed computing software. The company specializes in software that manages broadband, wireless and Internet networks and the embedded software that runs the hardware in these networks.

Vertel middleware provides software-to-software communication for connecting telecom management systems together, connecting the distributed software inside telecom network equipment and connecting the communication software of mobile devices such as hand-held PDAs with network based applications.

Vertel products are sold worldwide to network equipment manufacturers, service providers, software vendors and systems integrators. In the fall of 2000, Vertel launched WebResolve, the company's B2B exchange service that provides service assurance functionality to service providers.

On May 31, 2001, Vertel announced that it acquired all material assets and assumed certain liabilities of Trigon Technology Group Inc., a privately held corporation that provided network management tools and solutions to the convergent communications market. With Trigon's products, Vertel's product offerings are multi-technology and multi-vendor compatible for both telecommunications network management systems and for embedded agents for managing devices.

Vertel also develops turnkey management applications that fit individual customer requirements through its Professional Services Unit. The company is based in Woodland Hills and has sales offices and distributors throughout the world.

For more information on Vertel or its products, contact Vertel at 21300 Victory Blvd., Suite 700, Woodland Hills, Calif. 91367; telephone: [phone]; fax: [phone] or visit www.vertel.com.

Note: Vertel and WebResolve are registered trademarks of Vertel Corp. All other trademarks are the property of their respective owners.

Safe Harbor Statement: Except for the historical information presented, the matters discussed in this news release are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties. These uncertainties include factors that affect all businesses operating in a global market, as well as matters specific to the company and the markets it serves. Particular risks and uncertainties facing the company at the present include the company's ability, including financial ability, to continue to invest in research and development necessary for the development of new and existing products; the fact that some of our products are relatively new and, although we see developing market interest, it is difficult to predict sales for new products such as e*ORB, Mediation Framework and WebResolve and the market may or may not ultimately adopt these technologies; the length of the company's sales cycle for most of its products, including e*ORB and Mediation Framework, making initial license sales and future royalties difficult to forecast; additional difficulty in predicting royalty revenue because that revenue is dependent on successful development and deployment by our customers of our products; loss of key customer, partner or alliance relationships and the possibility that the company may not be able to replace the loss of a significant customer; the dependence on a limited number of customers for a significant portion of the company's quarterly license revenues; size and timing of license fees closed during the quarter which may result in large swings in quarterly operating results and the likely continued significant percentage of quarterly revenues recorded in the last month of the quarter, frequently in the last weeks or even days of a quarter, which further adds to the difficulty of forecasting and leads to a substantial risk of variance from actual results and the company's ability to control expenditures at a level consistent with revenues.

Additionally, more general risk factors include the possible development and introduction of competitive products and new and alternative technologies by the company's competitors; the increasing sales and marketing costs of attracting new and retaining existing customers; pricing, currency and exchange risks; governmental and regulatory developments affecting the company and its customers; the ability to identify, conclude, and integrate acquisitions on a timely basis; the ability to attract and/or retain essential technical or other personnel; political and economic uncertainties associated with conducting business on a worldwide basis. Further risks inherent in the company's business are listed under "Risk Factors" in Part I, Item I of Vertel's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2000 and Form 10-Q for the quarter ended March 31, 2001.

Readers are cautioned not to place undue reliance on any forward-looking statement and to recognize that the statements are not predictions of actual future results. Actual results could differ materially from those anticipated in the forward-looking statements and from historical results, due to the risks and uncertainties referred to above, as well as others not now anticipated. The foregoing statements and risk factors are not exclusive and further information concerning the company and its business, including factors that potentially could materially affect the company's financial results, may emerge from time to time. It is not possible for management to predict all risk factors or to assess the impact of such risk factors on the company's business. The company undertakes no obligation to revise or publicly release the results of any revision to the forward-looking statements.