Vertical’s SBX IP 320™ Receives the 2008 TMC Labs Innovation Award
from Internet Telephony Magazine

Affordable Converged Business Telephony System Delivers Enterprise Class Communications

CAMBRIDGE, Mass., June 24, 2008 – Vertical Communications, (Nasdaq: VRCC.OB), a leading provider of next-generation, IP-based phone systems and voice applications, announced today that Technology Marketing Corporation (TMC®) named Vertical’s SBX IP 320 as a 2008 TMC Labs Innovation Award winner presented by its publication, Internet Telephony.

“SBX IP 320 simplifies VoIP, providing a compelling business proposition for small business customers looking for an affordable but highly advanced phone system,” said Peter Bailey, Senior Vice President Product Management and Business Development for Vertical Communications. “Offering unsurpassed flexibility in delivering both traditional and IP telephony, SBX IP 320 includes a host of advanced features –desktop integration, softphone, networking over IP, and remote management – all contributing factors to its marketplace success.” He added, “We are pleased that TMC has chosen to recognize this products’ leadership position in the industry for small business phone systems.”

The Vertical SBX IP 320 was developed in partnership with LG-Nortel, a world leader in telecommunications. With thousands of systems sold worldwide, this communications system has a proven track record.

The TMC Labs Innovation Award honors products that display innovation, unique features, and significant contributions toward improving communications technology.
Vertical’s SBX IP 320 gives single- and multi-location small businesses access to the advantages of a big company PBX including a rich feature set, robust telephony applications, and significant flexibility and cost-savings associated with VoIP. SBX IP 320 includes integrated voicemail/auto attendant, CTI, conferencing, and supports a range of wired and wireless IP phones, soft phones and digital phones in a single system. The system can accommodate up to 32 users and multiple sites, so you enjoy pay-as-you-grow scalability.

“Vertical has demonstrated to the staff of TMC Labs that the SBX IP 320 is indeed truly innovative in the IP Communications industry. The SBX IP 320 has made contributions which have resulted in significant advancement to the industry,” said TMC President Rich Tehrani. “We’re proud to reward Vertical’s hard work with a TMC Labs Innovation Award this year.”

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.

About INTERNET TELEPHONY magazine
INTERNET TELEPHONY has been the IP Communications Authority since 1998™. Beginning with the first issue in February of 1998, INTERNET TELEPHONY magazine has been providing unbiased views of the complicated converged communications space.  INTERNET TELEPHONY offers rich content from solutions-focused editorial content to reviews on products and services from TMC Labs.  INTERNET TELEPHONY magazine reaches more than 225,000 readers, including pass-along readers.  For more information, please visit www.itmag.com.

About TMC
Technology Marketing Corporation (TMC) is an integrated global media company helping our clients build communities in print, in-person and online.  TMC publishes Customer Interaction Solutions, INTERNET TELEPHONY, Unified Communications, and IMS Magazine. TMC is also the first publisher to test new products in its own on-site laboratories, TMC Labs.  TMCnet, TMC's Web site, is the leading source of news and articles for the communications and technology industries. TMCnet is read by nearly one million US visitors according to Quantcast* and by two to three million unique visitors each month worldwide, according to Webtrends. In addition, TMC produces INTERNET TELEPHONY Conference & EXPO, Call Center 2.0 Conference and Communications Developer Conference. For more information about TMC, visit www.tmcnet.com.
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Press Contacts:
Ruth Seigel
Vertical Communications, Inc.
rseigel@vertical.com
480-443-6313

Jan Pierret
TMC
jpierret@tmcnet.com
203-852-6800, ext. 228
               
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This release 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 release address a variety of subjects, including, without limitation, the value that may or may not be placed upon our products as a result of our partner relationships, the ability of our products to improve the financial results of our customers, the perceived value our products have for our customers.  The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: the risk that the use of our products may fail to improve the financial performance of our customers, and the risk that our current and potential customers may fail to perceive the value that we ascribe to our product offerings, or difficulties and other factors detailed in the Company's filings with the Securities and Exchange Commission including its most recent filings on Form 10Q.

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