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Telmar Network Technology Signs Exclusive Supply Agreement with Vertical Communications for North American Markets

Telmar Network Technology will repair, service and manufacture Vertical Communications customized IP business phone systems and IP PBX solutions for small and medium business and enterprise communication needs across North America.

PLANO, Texas and SANTA CLARA, Calif. – September 15, 2009 – Telmar Network Technology today announced that it has signed an exclusive, five-year supply agreement with Vertical Communications for the repair, service, and manufacturing of its Vertical InstantOffice® and Vertical Comdial® DX-80™ product lines.  In the agreement, Telmar will assume manufacturing rights from Vertical for these product offerings and will directly support and market to Vertical’s 8,000 customers in the United States and Canada.

Telmar will offer the customized IP business phone systems and IP PBX solutions as part of its Extended Life product line. Vertical’s small and medium business and enterprise customers who have their products serviced and repaired by Telmar will receive a new 12-month warranty.

“Telmar’s investment in Vertical’s IP and digital telephony solutions highlights our continued commitment to the enterprise market,” said Jay Hilbert, Senior Vice President, Sales and Marketing at Telmar.  “With Vertical providing superior telephony services to many of the nation’s top retailers, we look forward to expanding our Extended Life product line and helping Vertical customers reduce cost while maintaining high-quality performance in their existing systems.”

“We sought a company with a long track record of demonstrating accountability and an unwavering commitment to quality,” said Vertical Communications CEO Bill Tauscher.  “Telmar’s excellent industry reputation, commitment to the highest quality standards, and extended life product experience convinced us that our U.S. and Canadian customers using InstantOffice and Comdial DX would greatly benefit from Telmar’s services and expertise.”

Vertical will continue to sell the Comdial DX product line which supports a number of the company’s existing technologies.

About Telmar Network Technology

Telmar Network Technology delivers compelling solutions that extend the life of critical network equipment, generate significant cost savings and increase operational efficiencies for OEMs, Enterprise and Network Service Providers around the globe.  For over 40 years, Telmar has provided network-wide repair, spares management, legacy product development and enhancements, as well as certified pre-owned products and services to the communications market.  The company is committed to upholding the highest standards of quality in its products and services.  Telmar Network Technology is headquartered in Plano, Texas, and operates facilities throughout the United States and Canada, and in Brazil, Argentina, Venezuela, the United Kingdom, the Netherlands, Belgium, India, and Malaysia.  For additional information about Telmar Network Technology, please visit www.telmarnt.com.

To learn more about Telmar’s enterprise solutions visit http://www.telmarnt.com/Products/Enterprise/Vertical-Communications.aspx

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 Santa Clara CA, Vertical has sales, engineering and operations facilities in Cambridge MA, Charlottesville VA, Phoenix AZ, Sarasota FL, Munich Germany and Hyderabad India. For more information about Vertical, please call 877-VERTICAL or visit 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 CONTACTS:

Debra Decker
Manager, Marketing Communications
Telmar Network Technology
+1 (972) 836-0401
debra.decker@telmarnt.com

Tracee Larson
Jetstream Public Relations for Telmar
+1 (646) 420-0310
larson@jetstreampr.com

Craig Morgan
Vertical Communications, Inc.
cmorgan@vertical.com
+1 (408) 404-1643