Vertical Communications Introduces Flexible Finance Solutions
Powered by TAMCO

Shield Program offers SMB and Enterprise Customers the Flexibility to Lease or Rent Vertical Solutions, Preserve Cash and Upgrade to the Latest Technology without Financial Penalty 

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.

About TAMCO
Founded in 1994, TAMCO is a leading financial services and marketing company that focuses exclusively on acquisition solutions for the telecommunications industry. The cornerstone of our value comes from our ability to understand both technology financing and our Partner’s core business, as our senior management team has a collective 100+ years in the telecom and technology sector. Our partners include telecom dealers across North America, national and regional, along with leading manufacturers of communications equipment. At TAMCO, we have the industry expertise to provide customer-focused solutions by developing successful business approaches to meet the challenges facing our partners and their customers. TAMCO offers its customers competitive rates, quick decisions, and the best customer service in the business. That's why we've become the leading leasing specialist in telecommunications. For more information, visit www.tamcocorp.com.

About Vertical Communications, Inc.
Vertical Communications is one of the largest telephony vendors in North America and a global leader in next-generation IP-based business communications systems and applications, 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 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.

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"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995.
This document contains forward-looking statements based on current expectations or beliefs, as well as a number of assumptions about future events, and these statements are subject to important facts and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The forward-looking statements in this document address a variety of subjects, including, without limitation, statements about the benefits of certain of the Company’s products, including, without limitation, the improved cost and customer service benefits for the Company’s business partners and customers; the Company’s assumptions about the future performance of the Vertical Flexible Finance Solutions program; the Company’s ability to enhance its revenue opportunities in the IP-PBX marketplace; the Company’s ability to continue providing products to the IP-PBX marketplace and others.  The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: the risk that the Company may fail to achieve the anticipated benefits from the Vertical Flexible Finance Solutions program, including, without limitation, failing to obtain the desired benefits for the Company’s dealers and customers; the risk that the Company’s assumptions about the future performance of the Vertical Flexible Finance Solutions program may prove to be incorrect; the risk that the Company may be unable to become a significant player within the IP-PBX telephony market; and other risks and assumptions detailed in the Company's filings with the Securities and Exchange Commission, including the most recent filing of the Company’s Form 10Q.

Trademark Information
Vertical Communications and the Vertical Communications logo and combinations thereof, Vertical Flexible Finance Solutions are trademarks and Vertical Networks and Vodavi are registered trademarks of Vertical Communications, Inc. All other brand and product names are used for identification only and are the property of their respective holders.

Press Contact:
Ruth Seigel
Vertical Communications, Inc.
rseigel@vertical.com
480-443-6313