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Vertical Announces Key Executive Organizational Changes

New management structure and addition of new executives align business around company objectives to drive revenue growth and partner development within its channel sales organization

SANTA CLARA, Calif. – November 2, 2009 –– Vertical Communications, a leading provider of next-generation IP-based phone systems and voice applications, today announced a number of important organizational changes and expansion of some key executive responsibilities. The changes align the business around the core focus of Vertical to continue to develop and enhance its distribution and dealer channels and the servicing of those channels through its sales and operational organizations.

Vertical announced the promotion of Peter Bailey to President and Chief Operating Officer, with responsibilities for sales and marketing, as well as operations. "This represents the final step in reorganizing our business following the acquisition and integration of 4 companies over the last 5 years and aligning our efforts around driving growth and success across our channels. Peter has been a top contributor as a senior executive over the last five years and has broad support from the Board and myself in taking this next step to driving the day-to-day sales and operational activities of the company," said William Tauscher, CEO and Chairman. "Further, handing over the day-to-day responsibilities will enable me to spend more time on strategic initiatives that will help drive our business to new levels." Reporting to Peter Bailey will be the following executives: Dick Anderson, Executive Vice President and General Manager, Wolfgang Maerz, Managing Director for EMEA, Marc Niknam, Vice President of Operations, Pradeep (Bobby) Mohanty, who is being promoted to Vice President of Product Management effective today, and David Ridder, who joins Vertical today as Senior Vice President of Sales with responsibilities for global channel sales.

New Sales Executive

David Ridder joins Vertical as Senior Vice President, Sales from Cintas Corporation where he was National Director of Cintas Engineered Systems business, responsible for a field and national account sales organization supporting 47 locations. "David brings both experience and a successful track record in developing and managing large dealer channel sales organizations and channel partner relations," said Bailey. "He will bring a new level of focus and execution capability on channel sales for Vertical."

Dick Anderson will continue in his capacity as a senior executive for Vertical and will increasingly focus on developing and managing Vertical’s national accounts customer base which currently includes Fortune 500 customers such as CVS/Caremark, Advanced Auto Parts and Staples. "Our national accounts business represents a large growth opportunity for Vertical and has been a key revenue contributor the last several quarters," said Bailey. "These changes will enable Vertical to increase its focus on this revenue opportunity and drive future growth in national accounts."

New Product Management Executive

Vertical announced the promotion of Pradeep (Bobby) Mohanty to Vice President of Product Management, with responsibilities for Vertical’s product strategy and direction in partnership with the Engineering organization. "Bobby has long been a star contributor within our organization and today’s promotion represents the natural next step in his responsibilities," said Bailey. "We look forward to his increased contribution to Vertical’s overall product direction as a member of the senior leadership team."

In making these changes, William Tauscher, Vertical's Chief Executive and Chairman, will continue to have overall executive responsibility for Vertical, with direct reports to include Peter Bailey, Scott Pickett, Chief Technology Officer and Bhavna Desai, Vice President of Finance.

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, Wave, ViewPoint 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:

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