DEERFIELD, IL., — October 24, 2002 — Vail Systems, a leader in telephony application services and hosting, today announced a successful first two quarters for its subsidiary, Versay Solutions. Vail launched Versay in March 2002 to capitalize on a qualitative shift in the way enterprises communicate with their customers.

This shift is being driven primarily by a convergence of mature speech recognition technology and the wide-spread acceptance of VoiceXML as an open-standard programming language. Companies are increasingly replacing aging proprietary IVR systems with more compelling natural language speech solutions. To support the full development lifecycle of these speech solutions, Vail created Versay as a consulting and solutions company.

Since opening its doors seven months ago, Versay has cultivated relationships with a growing partner community and engaged its first client relationships. In its short existence, Versay has already performed a usability study and assisted in the voice user interface design for a large mortgage company's speech application, developed a voice biometric password reset system for a large industrial company, and implemented a speech cross-selling system for an international marketing company.

"Speech technology is far from reaching its full potential for impacting mainstream business. This is primarily attributed to the fact that there are few solution providers who truly understand how to exploit the full capabilities of speech, "explained Phil Gray, President of Versay. "I think that our initial success in the market demonstrates that people are looking for an alternative, and that Versay is quickly moving to the forefront as a speech consultant and solution provider."

A distinguishing factor about Versay is its ability to provide flexible deployment options to their clients. In addition to providing premise-based solutions, Versay also gives companies the option to host their applications on Vail's SIP-based IP telephony platform.

Vail's platform processes calls for a wide range of applications such as outbound notification services, VoiceXML-hosted applications, conferencing, and enterprise call routing. Combining best-in-breed speech resources, multiple programming layers, and access to multiple telecom carriers, Vail's platform is highly configurable without sacrificing stability or scalability. Recently, it surpassed over 200 million calls for the year 2002, with daily call volume exceeding over 3 million calls.

"This milestone underscores Vail's commitment to meet the market's growing demand for solutions that are more scalable, reliable, and flexible than ever before," said Jim Whiteley, President and CEO of Vail Systems. "With SIP and speech tools like VoiceXML, our clients are taking advantage of tremendous new opportunities while also speeding development dramatically."

By delivering a proven, total platform solution and the expertise to build compelling speech applications, Vail and Versay together offer companies a comprehensive solution for all of their voice needs.

About Vail Systems
Vail Systems builds, hosts, and manages enhanced telephony application services. The company's distributed, fault-tolerant SIP platform has handled millions of phone calls for applications including outbound notification services, conferencing, enterprise call routing, and IVR systems. Additionally, Vail's services are supported by 24/7 network monitoring, real-time reporting, and web-based application management. For more information, call 800-360-8245 or visit www.vailsys.com.

About Versay
Versay Solutions delivers speech solutions that have a compelling caller experience and provide a tremendous return on investment. With extensive experience in speech recognition, biometric voice authentication, VoiceXML, J2EE, and SIP-based VoIP, Versay can support the entire lifecycle of a speech project from application discovery to custom development to ongoing maintenance and monitoring. And, our flexible deployment options-hosted, premise-based, or blended-focus on reducing your risk and maximizing your return. Versay is a subsidiary of Vail Systems, a voice ASP with over a decade of experience serving Fortune 1000 clients. For more information, call 888-869-0121 or visit www.versay.com.