Cambridge, Mass. (January 17, 2005)--Vertical Communications, Inc. (Vertical) (ASFTE.OB), a leading provider of next-generation, IP-based phone systems for small, large and distributed businesses, today announced that Fujitsu Transaction Solutions Inc. (Fujitsu) has agreed to resell and re-market Vertical's integrated communications solutions in retail and other vertical markets. With its knowledge of retailers' communications needs, Fujitsu will deploy complete, IP-based phone systems that encompass planning, provisioning and support using the Vertical Retail Suite - an integrated IP-PBX and voice application solution tailored to the unique requirements of retailers and their stores.

"This solution helps automate and integrate voice communications across the organization using a retailer's existing IT networks," said Doug Wallace, Fujitsu senior vice president of client operations. "Many retailers receive more calls to their stores than to their call centers, but cost and complexity at the store level has proven a barrier to addressing the issue of improving the customer's calling experience. And contrary to popular belief, calls directly into stores or branches can't effectively be handled by centralized call centers. The Vertical Retail Suite is designed to improve call handling at the store level through existing IT networks with the goal of increasing revenues and customer satisfaction."

"We are pleased to enter into this relationship with Fujitsu, a company that we believe combines knowledge of retailer communication needs with technical expertise and customer service," said William Y. Tauscher, chairman and CEO at Vertical. "We hope that through our combined efforts we will reach a wide array of customers who could benefit from our products and services."

The Vertical Retail Suite is built on the InstantOffice Platform, which enables distributed enterprises to improve customer call handling, automate service responses based on caller information and more intelligently route callers in branch offices and stores. The platform supports complete, IP-PBX and IP telephony services including retail applications, enterprise-wide reporting and rapid centralized management. Because the platform is standards-based, it integrates with legacy systems and equipment while providing a foundation for future applications. Other business benefits include cost-effective, rapid deployment of new communications applications, increased employee productivity and enhanced customer loyalty by creating positive experiences.