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Vertical Announces ‘The Vertical Challenge’

Global Leader in Next-Generation IP-Phone Systems to Give $1,000,000 in Products and Services to Companies to Transform Business Operations

SANTA CLARA, California, August 9, 2011 – Vertical Communications, the leading provider of IP-phone systems, today announced the launch of The Vertical Challenge, an innovative program targeting business customers with fifty to five hundred employees. In all, Vertical will choose eight companies and work with them to design and implement next-generation integrated communications solutions. These solutions will drive business process changes with measurable positive return on investment within nine months of deployment. Prospective business customers who want to take advantage of this unique opportunity can enter the Challenge on the Vertical website at http://challenge.vertical.com or on Facebook at https://www.facebook.com/VerticalCommunications between now and September 30th.

Qualified entrants will receive a free half-day needs assessment consultation on how to best leverage unified communications in their enterprise. Organizations that complete the assessment will be entitled to a 25% discount on Vertical equipment and software. From the qualified entries submitted, Vertical will select eight companies the Challengers to become finalists in the Challenge. Each of the eight Challengers will receive an award-winning Wave IP System from Vertical configured to achieve maximum business results. The communications package includes free installation, endpoints, applications and optimization. According to the Challenge rules, Vertical has nine months to produce results agreed upon ahead-of-time by Vertical and the Challenger. Vertical is so confident it can meet the Challenge that it is pledging to write a $25,000 check to the company if it fails. Progress reports on each Challenger's deployment will be posted regularly on the Vertical corporate website and on Facebook.

Vertical designs communication systems with business process and operations in mind. Rather than "one size fits all", Vertical systems can be tailored to each businesses' operational needs to maximize their bottom line. In the Retail industry, Vertical provides store managers and employees with the tools they need to effectively answer customer calls, fulfill orders automatically through voice-based ordering systems and manage inventory through POS system integration. In the Healthcare industry, Vertical helps streamline internal communications between nurses and doctors, enable providers to deliver better care, and automate appointment and scheduling functions for increased patient satisfaction and operational efficiency. Vertical bolsters business operations by providing tailored solutions that target business process optimization that are easy to deploy and manage.

"Our biggest differentiator is that we actually take the time to listen to our customers," said Vertical CEO, Peter Bailey. "We understand where they are headed and we are able to integrate our technology with their enterprise IT infrastructure to improve operational efficiency across their organizations."

Challengers in the Vertical Challenge will have direct access to Vertical's products, services and counsel that are designed with their needs in mind.

About Vertical Communications, Inc.

Vertical Communications is the US and global leader in next-generation IP-based business communications systems and applications, with a current installed base of over 200,000 customers. From retail to financial services to healthcare, Vertical uniquely provides medium-sized businesses with the enterprise-class functionality they need to deliver improved connectivity and collaboration that allows for faster decision-making, improved productivity and the ability to quickly drive new business opportunities. For more information, please 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 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:

Beth Trier
beth@triercompany.com
415-285-6147

Robbi Peele
robbi@triercompany.com
415-596-7929