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Vertical Awarded INTERNET TELEPHONY Magazine's 2011 Labs Innovation Award

Wave 2.0 software release recognized for exceptional innovation in providing critical business applications

SANTA CLARA, California, June 30, 2011 – 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 2.0 software release, for its Wave IP® 500 and Wave IP 2500 converged business communications systems, as a recipient of its 2011 Labs Innovation Award. Wave IP's unique Application-Ready architecture means Vertical's Unified Communications capabilities and suite of integrated business applications are available 'on-the-box' so they can be easily deployed and managed without expensive add-on software.

"The Innovation Award exemplifies the best and the most unique products and services that this industry has to offer. Vertical has proven their commitment to quality and the further development of the IP communications industry through its Wave IP", stated Tom Keating, CTO and TMC Labs Founder.

The TMC Labs Innovation Award honors products that display innovation, unique features, and significant contributions toward improving communications technology. The TMC Labs Innovation Awards are granted to those companies demonstrating 'ground-breaking' contributions to the industry.

"Today's award represents industry expert recognition and validation of the power of Wave IP's Application Ready architecture — the ability to deliver high-value voice applications integrated with VoIP telephony as a single system", said Peter Bailey, CEO & President for Vertical Communications. Wave IP offers customers a full portfolio of integrated business applications that can enhance business operations, increase productivity through best practices, and drive savings in operational and management costs. As a fully integrated 'on-the-box' solution, these capabilities do not require any additional infrastructure investment and can be deployed and managed through Wave IP's Global Administrator console".

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.

About INTERNET TELEPHONY magazine

INTERNET TELEPHONY has been the IP Communications Authority since 1998™. Beginning with the first issue in February of 1998, INTERNET TELEPHONY magazine has been providing unbiased views of the complicated converged communications space. INTERNET TELEPHONY offers rich content from solutions-focused editorial content to reviews on products and services from TMC Labs. INTERNET TELEPHONY magazine reaches more than 225,000 readers, including pass-along readers. For more information, please visit www.itmag.com

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 business communications systems and applications, 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 facilities in Charlottesville VA, Phoenix AZ, Santa Clara CA, Munich Germany and Hyderabad India. For more information about Vertical, please call 1-877-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 its future performance; 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 its anticipated growth, including, without limitation, failing to obtain the desired benefits for the Company's dealers and customers; the risk that the Company's assumptions about its future performance 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.

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 CONTACT:

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

Jan Pierret
TMC
jpierret@tmcnet.com
+1 (203) 852-6800, ext. 228