Vertical Networks Extends Global Reach Through Distribution Agreement With Nippon Telegraph and Telephone's NTT-ME Corporation - Company Business and Marketing

Cambridge Telcom Report, June 5, 2000

Vertical Networks, the leading provider of Integrated Communications Platforms (ICPs), announced Tuesday a multi-year distribution agreement with Japan's NTT-ME Corporation, a division of Nippon Telegraph and Telephone Corporation, the world's largest telecommunications services provider.

This announcement marks Vertical Networks' entrance into the Japanese telecommunications market and expands its international presence. Under the agreement, Vertical Networks and NTT-ME will work jointly to modify Vertical Networks' InstantOffice system for the Japanese market. NTT-ME plans to launch InstantOffice in Japan in the second half of 2000.

NTT-ME, which has 18,000 employees at its headquarters and 350 sales offices in Japan, provides a broad set of services directly to end-users under its "ME WAVE" brand. ME WAVE solutions include hardware and software, consultation, system integration, installation, operation, maintenance, and full support services for everything from small systems up to large networks.

"Customer demand for a more advanced and diversified multimedia environment, mainly the Internet, has been growing," said Seiichi Tokoro, senior vice president and senior executive manager of NTT-ME Corporation. "As a total IP business company, NTT-ME employs a 'Global Purchasing Agent Strategy' to satisfy this demand quickly and precisely. We have selected the InstantOffice by Vertical Networks -- a leading provider in the converged communication platform market -- as the first phase of this strategy. We are positioning InstantOffice as the core product of our IP solution business. With InstantOffice, our customers will have access to an integrated platform for a full range of voice and data services."

"Along with AT&T and Telecom Italia, our partnership with NTT-ME validates the shift in international markets to address the need for global IP solutions," said Alan Fraser, president and CEO of Vertical Networks. "Vertical Networks is fully committed to ensuring the success of NTT-ME's IP solutions strategy and to continuing to localize InstantOffice for the balance of the global marketplace."

A new approach to small-office communications, the InstantOffice system is a modular platform that combines the functionality of multiple communications products into a tightly integrated, robust, remotely manageable solution. Businesses choose -- and pay for -- only the voice, data, and application functionality they need, including PBX, voice mail system, multiprotocol router, 10/100 Ethernet LAN ports, and voice over IP gateway. InstantOffice supports a variety of WAN access types -- T1, Frame Relay, ISDN PRI, DSL, and 56/64K DDS. All features are remotely manageable and support SNMP. In this way, the InstantOffice system addresses the complete communications needs of corporate branch offices and small businesses with fewer than 100 employees that want best-of-breed communications, without the cost and complexity associated with today's piecemeal voice and data alternatives.

Vertical Networks is the leading provider of Integrated Communications Platforms (ICPs), the first system that combines voice, data, and applications support into one remotely manageable platform. With a unique focus on the needs of branch offices and small and medium-sized businesses worldwide, Vertical Networks delivers business solutions to a wide range of industries, including banking, medical, and publishing. To ensure total customer satisfaction, Vertical Networks' strategic network service provider, reseller, and systems integration partners offer comprehensive support services, including 7x24 on-site support. Upside magazine named Vertical Networks as one of the Hot 100 Start-ups of 1999.

For more information about Vertical Networks products, visit the company's World Wide Web site at www.vertical.com or call 800/826-6769.