Verso Closes Clarent Acquisition

ATLANTA -- Verso Technologies, Inc. (Nasdaq: VRSO), an integrated communications solutions company, announced today that effective February 12, 2003, it has closed its acquisition of substantially all of the business assets of Clarent Corporation for $9.8 million in notes. Clarent is a provider of Voice over Internet Protocol (VoIP) solutions for next generation networks and enterprise convergent solutions. Clarent's key products include next generation switching and call control software, high density media gateways, multi-service access devices, signaling and announcement servers, network management systems and high demand telephony applications based on packet-switched technology. Steve Odom, Verso's chairman and chief executive officer commented, "Verso's operational strategy has, and will continue to encompass the following: increased focus on international markets; continued introduction of new features, functionality and products that expand Verso's addressable market; and providing Verso's target customers with the complete solution they require, including applications, hardware, and technical expertise." Odom continued, "The acquisition of Clarent is consistent with these objectives:

James Weil, president of Clarent added, "Clarent customers should look to Verso for the continued commitment to product development and reliable service to which they have become accustomed. The combination of Clarent and Verso can create new and exciting opportunities for the combined customer base." At closing, Verso issued three promissory notes to Clarent: a $5.0 million secured note due February 13, 2004 which bears interest at a per annum rate of 10%, a $1.8 million unsecured note due February 13, 2004, which bears no interest, and a $3.0 million secured note due February 12, 2008, which bears interest at a per annum rate of 5.0%. The secured notes are secured by the assets acquired by Verso from Clarent. Clarent Corp. Verso Technologies Inc.