CAMBRIDGE, Mass. -- Vertical Communications (ASFTE.OB), a leading provider of next-generation, IP-based phone systems and applications that help businesses better serve their customers, announced today the appointment of Dick Anderson as the company’s seniorvice president of sales, marketing and services. Mr. Anderson will report directly to William Tauscher, Vertical’s chairman and chief executive officer. Mr. Anderson formally joined the company in January of 2005.

Vertical Communications was formed from the September 2004 acquisition of Vertical Networks® by Artisoft®, Inc. Mr. Anderson’s hiring is one step in a series of initiatives the company has implemented since the acquisition to capitalize on the rapid growth in the IP-telephony market. According to Infonetics Research, an international market research and consulting firm covering the data networking and telecommunications industries, the IP-PBX telephony market is projected to grow by 10% annually to more than $9.1 billion by 2008.In his new role, Mr. Anderson will be aligning the Vertical organizationto facilitate business growth and better serve the needs of its key constituencies, including: customers of the company’s InstantOffice® andTeleVantage® product lines; strategic partners that include industry leaders IBM, Intel and Fujitsu; the company’s more than 350 worldwide resellers; as well as investors and employees. Mr. Anderson brings to Vertical a wealth of knowledge and experience gained from more than 25 years of creating, directing and executing sales, marketing and service strategies in the technology sector.

“Having just achieved our ninth consecutive quarter of revenue growth, Vertical is clearly responding to the market opportunity presented. In hiring Dick, we are gaining an executive with demonstrated success in helping companies manage their growth and achieve their goals,” said William Tauscher, chairman and CEO at Vertical. “Dick’s extensive operational leadership, ability to understand customer needs, and track record of improving top- and bottom-line performance makes him a valuable addition to our strong management team, particularly at this time in the company’s history.”

“I’m delighted to be joining Vertical at this time. We have the vision,solutions and value proposition to help organizations better serve theircustomers and realize a significant return on their telephony investments,” said Dick Anderson, senior vice president of sales, marketing and services.

Vertical Communications Inc.