Vertical ranked in top 200 Fastest Growing Companies in North America

Attributes Revenue Growth to Adoption of its Innovative Wave IP Telephony Product

"We congratulate Vertical Communications on its ability to achieve such exceptional growth in one of today’s most innovative and competitive market sectors,” said Phil Asmundson, Deloitte LLP Vice Chairman and National Managing Partner for Technology, Media and Telecommunications. Asmundson added, “Each company on Deloitte’s Technology Fast 500 is an innovator with an exceptional five-year track record of growth. Vertical Communications has earned its position among the fastest growing companies in North America, and we are proud to honor this important accomplishment.”

Vertical Communication’s CEO, Bill Tauscher, credits “Wave momentum” as the watershed event in the company’s revenue growth. "Our strategy of bringing a robust unified communications solution –Wave IP 2500 –to the small and medium (SMB) business market has been gaining significant momentum in the telephony dealer community. We are proud that our efforts have been reflected in Deloitte’s 2008 Technology Fast 500 listing," said Tauscher.

“Now more than ever, our customers are leveraging Wave to meet the needs of their diverse and dynamic businesses while also saving operational costs and enabling their workforce to become more productive. In particular, our customers are taking advantage of Wave’s SIP trunking capabilities (VoIP calls) to achieve significant reductions in their overall communications expenses,” said Peter Bailey, Senior Vice President Product Management and Business Development for Vertical Communications.

Fast 500 Selection and Qualifying Criteria

The Fast 500 ranks the fastest growing technology, media, telecommunications and life sciences companies in North America. It is compiled from Deloitte’s regional North American Fast 50 programs, nominations submitted directly to the Fast 500, and public company database research. Companies are selected based on percentage revenue growth from 2003 to 2007.

Entrants must own proprietary intellectual property or proprietary technology that contributes to a significant portion of the company's operating revenues or devote a significant proportion of revenues to research and development of technology. Using other companies' technology or intellectual property in a unique way does not qualify. Base-year operating revenues must be at least $50,000 USD or $75,000 CD, and current-year operating revenues must be at least $5 million USD or CD. Companies must be in business a minimum of five years, and they must be headquartered within North America.

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

About Deloitte
As used in this document, “Deloitte” means Deloitte LLP. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

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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 CONTACT:
Craig Morgan
Vertical Communications, Inc.
cmorgan@vertical.com
408-404-1643