Vertical Communications, a leading provider of next-generation IP-based phone systems and voice applications announced today significant enhancements to the award-winning SBX IP, a converged IP telephony system developed in partnership with an LG electronics joint venture. Today’s availability of release 3.0 provides increases in capacity (reflected in the rebranding of the product) to up to 48 stations, addition of a T1/PRI interface board and numerous feature updates to help small businesses further increase productivity and efficiency.

SBX IP is a small business telephony system that incorporates enterprise class features, integrated voice mail/auto attendant, Voice over IP (VoIP), CTI, Conferencing, IP soft phone support and multi-site networking for single- and multi-location small businesses.

SBX IP Release 3.0 Enhancements

In addition to its already comprehensive feature set, release 3.0 offers a number of high-value new capabilities which are available through a simple free software upgrade. Among the notable enhancements:

• Scalability
  • T1/PRI Card
  • Expansion to 48 station ports
• New Features
  • Record VMIB greeting remotely from CCR menu
  • CO Line preset forward
  • CCR busy/error/timeout destinations (more destination choices VMIB greeting, station)
  • Call Coverage of hunt groups

According to Clyde Zimmerman, President, FiberCom, Inc, “The addition of T1/PRI to the SBX IP system has allowed us to deliver cost savings to our customers and provide additional features not offered by traditional analog trunks.”

“Whereas the SBX IP 320 was limited to 12 analog lines by 32 stations (12x32), the SBX IP scales to as many as 30 lines and 48 stations (30x48). Release 3.0 increases the CO line capacity through the addition of a T1/PRI card that at full capacity will support 24 channels. The card also can be configured to support Fractional T1 (FT1), where available (typical FT1 carrier offerings are 8, 12 and 16 channels). In addition to the 24 T1 channels, the SBX IP will simultaneously support as many as 6 as analog lines,” said Charles deTranaltes, Product Manager for Vertical Communications. “Release 3.0 enables our partners to begin selling SBX IP into significantly larger customers, which has increasingly been a request from the field. We listen to our partners and this has allowed us to continue to innovate and respond to their needs in a timely fashion.”

In addition to increasing the maximum configuration of the SBX IP, Release 3.0 will support remote recording of auto attendant greetings, which certainly will make life easier for snowbound staff, for example. A new CO line preset forward feature will allow the System Administrator to set up robust call forwarding scenarios. The SBX IP allows any number of lines to ring into specific telephones, much like DID (Direct Inward Dial) in a PBX system. Release 3.0 allows the System Administrator to preset call re-routing to voice mail or another station based on number of rings. As this feature is line-specific, a call to the warehouse might forward to a general voice mailbox after 5:00 and a call to Accounts Payable might forward to the General Manager after 5 rings. A new CCR (Custom Call Routing) option will open up new routing options that the System Administrator can define in the event that a caller fails to make a proper auto attendant menu selection and errors or times out.

According to Steve Davidson, President of U.S. Infortel Corp (www.usinfotel.com), “SBX IP is a great entry level system for those clients that are simply looking for an affordable phone system but want extra features. It goes in and stays in; we never have to go back!”

“In conjunction with this release we are also excited to announce an updated SBX IP microsite (www.sbxip.com) with tighter integration to V-Connect (http://vconnect.vertical.com), our Partner Portal, for real-time display of news and event information” said Peter Bailey, President and Chief Operating Officer for Vertical Communications.

Using V-Connect, dealers enjoy direct, two-way communication with Vertical technical, sales and marketing teams to receive the critical information they need to provide the best IP solutions to business customers.

About SBX IP

VoIP is made simple with Vertical SBX IP. It’s easy to manage, easy to install and easy to use. Developed in partnership with an LG electronics joint venture, a worldwide leader in telecommunications and strategic partner of Vertical Communications, SBX IP supports both traditional and IP endpoints as well as SIP trunking in a single system providing businesses with complete flexibility on when and how VoIP is deployed, offering large enterprise-class features at a small business price.

The SBX IP can be purchased through Vertical’s network of over 1,800 Vertical Business Partners. To learn more about SBX IP, please call 877-VERTICAL or visit www.sbxip.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 Santa Clara CA, Vertical has facilities in Cambridge MA, 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.

"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 SBX IP; 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, the Company’s ability to continue to certify additional Internet Telephony Service Providers in 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 SBX IP, 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 SBX IP may prove to be incorrect; the risk that the Company may be unable to become a significant player within the IP-PBX telephony market; the risk that the Company will not be able to certify its products with additional Internet Telephony Service Providers 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, and SBX IP 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.