Vertical Xcelerator IP™ Wins 2007 TMC Labs Innovation Award

Next-Generation IP Telephony & Applications Provider Moves up from #10 ranking in 2006

CAMBRIDGE, Mass. (Oct 29, 2007) -- Vertical Communications, (VRCC.OB)(“Vertical”), a leading provider of next-generation, IP-based phone systems and applications that help businesses better serve their customers, today announced that it was ranked number 5 on this year’s Boston Business Journal list of 100 fastest growing public companies, up from the number 10 ranking in 2006.

“We are pleased to be recognized again as a leader among other Boston-area public companies,” said Bill Tauscher, chief executive officer of Vertical. “This news is a reflection of our ongoing commitment to provide our customers and business partners with advanced business communications solutions and applications that improve productivity, streamline business processes and improve customer service.”

Vertical is focused on the small-to-medium business marketplace while also servicing a number of high-profile national product and service retailers. Vertical’s solutions redefine the role that telephony plays in business by delivering voice communications systems with easy-to-use integrated applications that dramatically increase customer productivity and efficiency while reducing costs. Vertical Wave IP 2500™, the company’s next-generation telephony platform, uses a revolutionary Applications Inside™ architecture that makes it easy for customers to quickly deploy powerful, pre-loaded applications on demand, resulting in considerable cost savings and improved customer service. Vertical’s solutions deliver enterprise-class functionality and competitive advantage while enabling cost-effective migration from yesterday’s legacy PBXs to today’s next-generation IP business phone systems and applications.