CAMBRIDGE, Mass. (April 27, 2005) -- Vertical Communications (ASFT.OB), a leading provider of next-generation, IP-based phone systems and applications that help businesses better serve their customers, announced today that the company has established a new European headquarters at its German subsidiary. The company created Vertical Communications GmbH in an effort to expand its international presence and meet an anticipated increase in demand for products and services in Europe, its fastest growing market outside the U.S. International Data Corporation, a global market intelligence and advisory firm in the information technology and telecommunications industries, has issued forecasts that the European market for IP-PBXs will be worth approximately $3 billion by 2008.

“European telecommunications value added resellers (VARs) and their clients are building solutions that are designed to increase productivity and call quality. With an increased presence in Europe, our goal is to provide our partners with improved customer and sales support – and position ourselves to meet the expected market demand for our InstantOffice® and TeleVantage® solutions,” said William Tauscher, chief executive officer at Vertical Communications, Inc.

Mel Passarelli, the vice president of International Sales at Vertical, and his team will work closely with the staff of the new European headquarters to cultivate relationships with the company’s network of European-based Authorized Vertical Solution Providers. Vertical provides its European partners with training classes, materials and certification; sales literature and tools; free technical support; sales support; joint marketing initiatives and channel-ready, IP-based phone solutions that help businesses better serve their customers.

“We are pleased to have been an Authorized Vertical Distributor for a number of years,” said Jeroen André de la Porte, Commercial Director of Boport Telecommunications BV. “Vertical Communications’ solutions provide our telecommunications integrator customers with open platforms for provisioning intelligent telephony systems that help businesses better serve their customers. With Vertical’s increased presence, we look forward to strengthening our relationship and benefiting from even better customer and sales support.”

Vertical’s New European Headquarters is located at: Vertical Communications GmbH, Domagkstrasse 7, 85551 Kirchheim, Germany.