Vertical Xcelerator IP™ Wins 2007 TMC Labs Innovation Award

CAMBRIDGE, Mass., January 29, 2008 – Vertical Communications, (VRCC.OB)(“Vertical”), a leading provider of next-generation, IP-based phone systems and voice applications that help businesses better serve their customers, announced today the 2007 recipients of its President’s Club Charitable Grant Program. Vertical established this community outreach program five years ago as a way to help 501c3 charitable organizations have access to the latest communication technologies. Membership in the President’s Club is earned by top-performing Vertical Authorized Business Partners; those who retain that membership for two years running earn Elite status, and are able to nominate a local-area charity to receive a one-time equipment donation. In total, Vertical awarded $88,000 in 2007 to nineteen non-profits located throughout the U.S. Installation and training services were donated by the Vertical business partner. The President’s Club Charitable Grant program has awarded a total of $221,000 to 50 charitable organizations since 2005.

“Nonprofit 501c3 organizations find it difficult to allocate limited budget dollars to purchase or upgrade capital equipment like telecommunications systems,” said Dick Anderson, executive vice president and general manager of Vertical Communications. “We are very pleased to work with our dedicated business partners to identify organizations in need in their communities, and to provide powerful communications solutions that enhance their valuable community service work.”

“The money we save from cutting long-distance costs between our many service locations allows us to keep focused on our organizational mission,” said Ivy Tetreault, IT Director for Didlake, Inc, a non-profit organization that enriches the lives of people with disabilities by providing employment such as mailroom, copy center and micrographics operations, facilities management and custodial/janitorial services. “The new communications system donated by Vertical Communications and implemented by Vertical Partner TelNet of Virginia allows us to keep up-to-date in a highly competitive environment. We are now able to stay in communication with all of our employees on location – whether the individual is handling administrative tasks sitting at a desk or walking throughout a building providing custodial services –on a single, easy-to-manage telephone system.”

Organizations receiving Vertical equipment donations address a range of community needs, including wellness, recreation, education and spiritual groups. The following non-profit organizations from around the U.S. received Vertical equipment donations in 2007:

About Vertical Communications
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 .