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A new era in IP Communications ― Vertical releases Wave IP 500 targeted at the cost-conscious 10-50 user market

Offering the same award winning applications as the Wave IP 2500, at a capacity and price for branch and small offices

CAMBRIDGE, Mass., February 3, 2009 - Vertical Communications, a leading provider of next-generation IP-based phone systems and voice applications, today introduced the Wave IP 500, a significantly cost-reduced addition to the Wave IP telephone system family targeted at the 10-50 user market. A fully converged system, Wave IP 500 offers both traditional and standards-based VoIP support in a single solution, and with its Applications InsideTM Architecture, also delivers a portfolio of integrated applications that enable increases in business productivity.

The Wave IP family of telephone systems provides customers with ultimate flexibility to support all users whether they're working― at headquarters, in a branch office, at home, or on the road and regardless of what devices they’re using― IP, digital or analog phones and devices as well as soft phones and more. Each system offers desktop integration through Wave’s award-winning ViewPointTM application, including one-click call recording, visual voicemail, presence and on board reporting. Wave IP is also integrated with several SIP trunking providers to enable businesses to capture significant cost savings utilizing VoIP calling.

“Now more than ever, cost-sensitive customers are leveraging Wave IP to meet the needs of their diverse and dynamic businesses, while also saving operational costs and enabling their workforce to become more productive. With Wave IP 500, which is over 50% less expensive than the Wave IP 2500, smaller cost-conscious businesses can leverage the same applications and capabilities used by larger enterprises to make their employees more productive, and substantially reduce operational expenses through lower calling costs associated with VoIP and technology infrastructure management costs”, said Peter Bailey, Senior Vice President Product Management and Business Development for Vertical Communications. He added, “Like Wave IP 2500, the Wave IP 500 is also very migration friendly – able to support legacy digital handsets for our Comdial and Vodavi base, as well as any analog handset, and traditional and VoIP trunking in a single solution – so our customers can upgrade to Wave IP while leveraging their existing infrastructure, which can save them up to 50% of the cost of a new phone system. The largest benefits, however, are realized through the cost savings and productivity increases our customers experience when they upgrade to a Wave IP system. The Wave IP family of systems offers unmatched value and flexibility for businesses, especially now in a difficult economic environment, increasing employee productivity and reducing operations costs are critical objectives that can be achieved through an upgrade to a Wave IP system”.

"We are excited about the release of Wave IP 500 and the opportunity this represents to the telephony market. With its application framework and highly supportable platform, Wave IP is our lead product," said Richard Alexander, President, The Alexander Group

"We have enjoyed success with the Wave IP 2500 system from Vertical and believe the Wave IP 500 release represents even greater opportunity for us to expand our business. We have a large number of systems installed with networking, digital and IP end points, configurations with T-1, analog trucks and SIP and they all work well. We look forward to growing our business with Vertical," said Richard Medeiros, President, Voice Systems, Inc

"We have experienced a 15-20% productivity boost since we installed Wave in our office. Our monthly phone charges were cut in half, Wave just pays for itself, and Viewpoint "rocks", I don’t know how we survived without it!" Hershel Rosenberg, Voice Tech Systems, Inc

“In conjunction with this release we are excited to announce our Wave Webinar series. Our Wave IP experts will be presenting a range of topics submitted from our dealer community via V-Connect, our new dealer Web portal” said Bailey.

“The industry has changed so much, so fast that getting the correct information quickly is essential for good customer service. V-Connect is an excellent resource and includes capabilities not typically offered by other manufacturers,” said Tom Czarnecki, Manager of Sales Engineering at Executone Communications. He added, “Vertical is clearly trying to position itself as extremely collaborative and supportive with its channel, which is extremely attractive from the perspective of the Dealer. The site has a number of great tools and features, but perhaps most importantly, direct access to Vertical employees, executives as well as access to proprietary information that no other vendor provides. We’ve linked most of our staff to V-Connect which we use as a tool to access critical information to support our selling and support efforts. Vertical truly sets itself apart because they diligently review feedback from the field and react to what our customers are asking for.”

Using V-Connect, dealers enjoy direct, two-way communication with Vertical technical, sales and marketing teams to receive the critical information they need to provide the best IP solutions to business customers. Dealers can also communicate with other registered Vertical dealers through blogs.

“We believe achieving transparency and a spirit of partnership are paramount to fostering successful relationships with our channel partners, and the introduction of V-Connect represents a significant step towards this goal,” said Bailey.

About Vertical Communications, Inc.

Vertical Communications is one of the largest telephony vendors in North America and a global leader in next-generation IP-based voice and data and digital communications systems for business, with a current installed base of over 200,000 customers. 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, Staples and Apria Healthcare. Vertical delivers its solutions through a worldwide network of over 1800 business partners. With headquarters in Cambridge MA, Vertical has sales, engineering and operations facilities in Charlottesville VA, Phoenix AZ, Santa Clara CA, Sarasota FL, Munich Germany and Hyderabad India. For more information about Vertical, please call 877-VERTICAL or visit our Website at www.vertical.com.

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"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995.
This document 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 document address a variety of subjects, including, without limitation, statements about the benefits of certain of the Company’s products, including, without limitation, the improved cost and customer service benefits for the Company’s business partners and customers; the Company’s assumptions about the future performance of V-Connect; the Company’s ability to enhance its revenue opportunities in the IP-PBX marketplace; the Company’s ability to continue providing products to the IP-PBX marketplace, the Company’s ability to continue to certify additional Internet Telephony Service Providers in the IP-PBX marketplace and others. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: the risk that the Company may fail to achieve the anticipated benefits from V-Connect, including, without limitation, failing to obtain the desired benefits for the Company’s dealers and customers; the risk that the Company’s assumptions about the future performance of V-Connect may prove to be incorrect; the risk that the Company may be unable to become a significant player within the IP-PBX telephony market; the risk that the Company will not be able to certify its products with additional Internet Telephony Service Providers and other risks and assumptions detailed in the Company's filings with the Securities and Exchange Commission, including the most recent filing of the Company’s Form 10Q.

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

PRESS CONTACT:
Craig Morgan
Vertical Communications, Inc.
cmorgan@vertical.com
408-404-1643