Vertical Introduces InstantOffice Voice Server to Voice Enable Enterprise Applications; Enables Cost-Effective Deployment for Speech Solutions.

CAMBRIDGE, Mass. -- Vertical Communications (ASFT.OB), a leading provider of next-generation phone systems and voice applications that help businesses better serve their customers, today announced Vertical InstantOffice Voice Server (IOVS), an open, VoiceXML-based, self-service platform that allows customers to create "voice portals" and deliver voice-enabled applications to wire line and wireless devices. By giving organizations a new way to enhance their customers' experiences, IOVS can significantly improve customer service, as well as improve overall employee productivity.

"Current technology requires six months to a year of development time for new voice applications," said Bill Tauscher, Vertical's Chairman and CEO. "Our goal is to provide customers with a simple, cost-effective solution to streamline that process. Because IOVS uses one platform, one code base and open standards, customers will see an immediate benefit as development time is significantly reduced. That reduction directly translates into lower total cost of ownership for our customers."

IOVS is built on Vertical InstantOffice, an integrated communications platform that unifies the administration and management of all voice, data and application services, thereby eliminating the need for multiple devices from multiple vendors. InstantOffice is unique in that it combines feature-rich, IP-PBX capabilities, a VoIP gateway, VoiceXML-based (VXML) voice applications and telephony components with a robust multi-site remote management and reporting capability. Customers can realize the significant benefits of this intelligent voice solution in the form of low-maintenance, cost-efficient communications that enhance business processes, profitability and customer service.

Cost-Effective Customer Self-Service

With large, distributed enterprises and medium-sized organizations continually looking for more cost-effective ways to provide better customer service, self-service has emerged as a preferred method that allows customers to obtain required information as well as complete transactions themselves. To address this opportunity, Vertical developed IOVS, which is ideally suited to deploy VXML-based, self-service applications. With IOVS and self-service applications, voice resources can be used as virtual extensions of human resources, enabling around-the-clock service, freeing up staff from answering basic, repetitive questions and allowing staff to focus more of their time on complex interactions that require human intervention.

At the same time, self-service customers can take advantage of flexible, consistent and integrated access to their information and service options, either via the telephone or the Web. A crucial component of successful voice self-service is providing fast response times to customers calling in. IOVS directly addresses that need, thereby significantly reducing call abandonment rates, improving customer satisfaction and creating loyal customers.

Built on open standards, IOVS provides ease and flexibility by allowing customers to build their own applications or purchase off-the-shelf, third-party VoiceXML applications for self-service deployment. Since IOVS is built on the same open standard that is already employed for Web-enablement, customers will not need to re-train employees and will therefore avoid the costs and time commitments associated with training employees on new applications and methods. In addition, IOVS provides pre-built reusable applications - such as prescription refill, outbound notification services, entity locator and order delivery status - that allow faster deployment in a customer environment.

IOVS also includes a voice browser, which enables telephone callers to navigate self-service information the way they would navigate through Web pages. Unlike Internet browsers, voice browser software is extremely sensitive to response times, content quantity and recognition accuracy, due to the nature of presenting information through the telephone. IOVS's unique, patent-pending design provides mechanisms for performance optimizations that will allow faster response to callers' commands and enhance customer experience of the speech application.

IOVS is currently available on a limited basis. For more information, please call 800-914-9985 or visit: www.vertical.com.

About Vertical

Vertical Communications, Inc. is a leading provider of phone systems and voice applications that help businesses boost revenue, increase productivity and provide superior customer service. Vertical's products and solutions help companies of all sizes - from small and medium-sized businesses to large, distributed enterprises - including 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.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995.

This release contains forward-looking statements based on current expectations or beliefs, as well as a number of assumptions about future events, and these statements are subject to important facts and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The forward-looking statements in this release address a variety of subjects, including, without limitation, the value that our customers may or may not place upon our products, including our new Vertical InstantOffice Voice Server platform; the ability of our products to perform as we anticipate in any individual customer's telephony environment, including, without limitation, the ability to improve the financial results of our customers; and the perceived value our products have for our customers. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: the risk that our customers may not perceive that our products, including the Vertical InstantOffice Voice Server platform, have value; the risk that the use of our products may fail to achieve the desired results in our customer's telephony environment, the risk that our products may fail to improve the financial performance of our customers; and the risk that our current and potential customers may fail to perceive the value that we ascribe to our product offerings, or difficulties and other factors detailed in the Company's filings with the Securities and Exchange Commission including its most recent filings on Form 10-K.

Trademark Information

Vertical Communications and the Vertical Communications logo and combinations thereof are trademarks of Vertical Communications, Inc. Artisoft, TeleVantage, InstantOffice and Vertical Networks are registered trademarks of Artisoft, Inc. All other brand and product names are used for identification only and are the property of their respective holders.