Vertical Xcelerator IP™ Wins 2007 TMC Labs Innovation Award

CAMBRIDGE, Mass., March 26, 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 availability of Vertical Flexible Finance Solutions. In partnership with TAMCO, a financial services company that focuses exclusively on acquisition solutions for the telecommunications industry, Vertical Flexible Finance Solutions offers small to medium-sized businesses (SMBs) and enterprise customers the option to lease or rent any of Vertical’s telephony solutions, preserve cash, gain tax benefits and have the ability to painlessly upgrade their telephony system at any time with the Shield Program™.

“The Vertical Flexible Finance Solutions Shield Program is the perfect complement to our strategy for selling Vertical’s Wave IP 2500 as a monthly managed service with an all-in-one price to our customers,” said Michael Finaldi, president of New Jersey-based Telesolutions. He added, “The program gives our customer’s exactly what they want in terms of value, while at the same time minimizes their risk. Importantly, it also eliminates the line item discounting and maximizes my deal size and profitability.”

The Shield Program is a right-to-use program similar to a Fair Market Value (FMV) lease, but is considerably more flexible. If technology or business needs change, customers can completely replace their entire system without negative financial consequences. There is no waiting period, no rollover balance, and no hidden costs for a company to upgrade their telecommunications system to newer technology.  The Shield Program provides a true “System Replacement Guarantee.”

“Vertical Flexible Finance Solutions provides our business partners and their customers with the industry’s most unique and flexible financial services offering. This powerful selling tool provides compelling, cost-effective alternatives to a cash purchase, and delivers a true competitive advantage to our dealers,” said Dick Anderson, executive vice president and general manager of Vertical Communications. He added, “With technology and business needs constantly shifting, the Shield Program is the perfect way to acquire Vertical products and have peace of mind, knowing that your telecom system can change as your needs change. When paired with Vertical’s industry-leading Wave IP 2500 system, our partners and their customers can hit a homerun – technologically, operationally and financially.”

“Vertical Flexible Finance Solutions combines Vertical’s knowledge and success in the telecommunications marketplace with TAMCO’s history of providing unique financial solutions,” said Paul Metzheiser, executive vice president of sales and marketing at TAMCO. He added, “This combination offers a total enterprise solution unmatched in the telecom arena that addresses Business, Technology, and Finance for Vertical’s customers. Vertical Flexible Finance Solutions offers several valuable lease options; however, the flagship Shield Program provides a ‘true’ System Replacement Guarantee that helps businesses position themselves for the future.”

To learn more about the Vertical Flexible Finance Solutions, please call Doug Surette at 617-354-0600 or visit Vertical Flexible Finance Solutions powered by TAMCO at www.tamcocorp.com.

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