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Vertical Receives 2010 Leadership Award from Next Generation Networks Magazine

Wave IP™ Recognized for Outstanding Innovation

SANTA CLARA, Calif. – June 22, 2010 –– Vertical Communications, a leading provider of next-generation IP-based phone systems and voice applications announced today that Technology Marketing Corporation (TMC) has named the Wave IP converged telephony system as a recipient of its 2010 Leadership Award, presented by its publication Next Generation Networks magazine.

The Second Annual NGN Leadership Award has recognized the growth, evolution and distinction between the applications and services designed for next generation networks and the enabling technologies that make them possible. Vertical Communications has been recognized in the Network Technology or Services and Applications category.

The Wave IP Business Communications System is a comprehensive IP business phone system family designed for enterprises of all sizes. Cost-sensitive small- to medium-sized businesses, and larger distributed organizations seeking to reduce overhead associated with managing business communications can easily transform their legacy telephony infrastructure into an application-rich, next-generation VoIP solution by deploying Wave IP. As a fully integrated solution, Wave IP offers customers ultimate flexibility and features - unified communications, contact center, call recording, reporting, networking, management, custom call routing applications and IVR - in a single system.

"Our customers are investing in Unified Communications given the enormous opportunities to cut operating and capital expenditures, as well as offer new features and communications capabilities to their business", said Peter Bailey, President for Vertical Communications. "We typically see the ROI paying for the phone system in the first 12 months of deployment - which is an unprecedented ROI for our industry."

"Vertical has been recognized for their exceptional work in advancing NGN services and technologies. Wave IP has proven it's exceptional and its innovation has contributed to the transformation of the telecommunications industry," said Rich Tehrani, CEO, TMC. "Congratulations to the entire team at Vertical and we eagerly await the upcoming 2.0 release, which going to set the standard in Unified Communications for the industry."

According to Bailey, "Vertical's Wave IP system offers unprecedented functionality and simplicity for an enterprise IP phone system. With the 2.0 release, we have added to our unified communications capabilities with the addition of secure instant messaging, integrated SIP softphone and Mobile Extension which enables any device with a DID to become a PBX extension - all as standard features. We are also introducing Fax Manager (integrated fax server) and Voice Server 2.0 (integrated vXML IVR platform) which now offers both automated inbound and outbound applications. Given the breadth of capabilities, Wave IP enables businesses to consolidate and cut communications expenditures, while also offering unprecedented connectivity to its employees and professional customer service to its customers. The bottom line is return on investment, which Wave IP customers realize very quickly."

About NGN magazine

NGN magazine is the resource for communications service providers and the supporting ecosystem of equipment providers, system integrators, and solutions developers as they make the transition to next generation networks.

NGN magazine will cover how these new technologies will integrate with legacy systems, and how they will improve service, deliver new applications, and offer ROI to carriers. TMC continues to provide leading-edge information as this market develops. NGN represents the evolution of IMS Magazine. Launched in January 2009, NGN encompasses a wider swath of the important trends and newsmakers that are shaping the networks of the future.

About TMC

Technology Marketing Corporation (TMC) is a global, integrated media company helping our clients build communities in print, in person and online. TMC publishes Customer Interaction Solutions, INTERNET TELEPHONY, Unified Communications, and NGN magazines. TMCnet, TMC's Web site, is the leading source of news and articles for the communications and technology industries. TMCnet is read by two million unique visitors each month on average worldwide, according to Webtrends. TMCnet has ranked within the top 3,500 in Quantcast's Top U.S. sites, placing TMCnet in the nation’s top .03% most visited Web sites. In addition, TMC produces INTERNET TELEPHONY Conference & EXPO (ITEXPO); 4GWE Conference and M2M Evolution (in conjunction with Crossfire Media); Digium|Asterisk World (in conjunction with Digium); and Smart Grid Summit (in conjunction with Intelligent Communication Partners).

TMC also serves technology professionals with industry-specific Web sites: IT.TMCnet.com, 4G-wirelessevolution.TMCnet.com, M2M Evolution.com, Smart-Grid.TMCnet.com, Smart Products Ecosystem, Robotics.TMCnet.com, Cable.TMCnet.com, Satellite.TMCnet.com, Green.TMCnet.com, Healthcare.TMCnet.com, and Education.TMCnet.com. For more information about TMC, visit www.tmcnet.com

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 Charlottesville VA, Phoenix AZ, 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 IP 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

Jan Pierret
TMC
jpierret@tmc.net
203-852-6800, ext. 228