Vertical Solutions Announces Focus on CRM Solution Development with Strategic Divestiture of IT Service Management Technology

PowerHelp IT technology sold to Mercury interactive as part of $18.5 million aggregate deal; VSI will focus exclusively on developing PowerHelp CRM for external customer service and field service providers

June 13, 2006 - Cincinnati, OH - Vertical Solutions, Inc. (VSI), a leading developer of IT Service Management and Customer Relationship Management software, announces that Mountain View, CA-based Mercury Interactive Corporation has acquired ownership of VSI’s IT Service Management product, PowerHelp IT and related core technology, as well as research and development and support personnel and facilities from VSI partner company Tefensoft, Inc. for an aggregate purchase price of $18.5 million. This sale enables Vertical Solutions to focus on its core competency of delivering market-leading business solutions to external service providers. PowerHelp CRM is a web-based suite of solutions that enable companies to completely manage their customer support and field service processes and enhance their ability to penetrate, retain, and manage their customers.

"In the past, we have been able to leverage our advanced technological capabilities in both the IT Service Management (ITSM) and Customer Relationship Management (CRM) marketplaces. However, we recognize the go-to-market strategies for ITSM and CRM are often unique and require separate sales and marketing efforts. By divesting our ITSM products, we have the market awareness and financial capability to significantly accelerate our growth strategies and focus one hundred percent of our efforts on CRM." - Ron Wegmann, Sr., CEO of Vertical Solutions

By developing technology based on two decades worth of experience in field service and support, VSI’s PowerHelp CRM, with its unified architectural design, provides a "closed loop" process that leverages and consolidates critical sales, contact center, and field service information across the enterprise. An integrated mobile solution extends the competitive advantage to the field with quick, efficient, and timely information that enhances the customer experience. PowerHelp CRM customers include ABB, GBC Division of ACCO Brands, Rubbermaid, and Mitsubishi.

"Mercury’s technology acquisition will enable VSI to concentrate on developing more comprehensive CRM solutions for contact centers and field service providers to enhance their customer relationships, streamline their customer interaction processes, and build their businesses. VSI should be seriously evaluated as an alternative to CRM and field service solutions from Oracle, SAP, and Onyx." - Gary Lemke, president of CRMAdvocate (crmadvocate.com)

Recent studies from the Stamford, CT-based research firm Gartner, Inc. highlight the strength of the external CRM marketplace. According to Gartner's "Market Share: CRM Software, Worldwide 2005" (Sharon Mertz, Chris Pang, and Yanna Dharmisthira, June 2006), the total market for CRM software exceeded $5.7 billion in 2005, including license and maintenance total software revenues. The report states, "The worldwide CRM market enjoyed robust growth as total software revenues grew 13.7 percent...Drivers are solidly focused on new customer acquisition, expanding wallet share, process optimization and business accountability, resulting in higher demand for applications that drive revenue generation and enhance the customer experience." In addition, Gartner’s report, "What’s Hot in the World of CRM Applications," (Ed Thompson, Robert P. Desisto, Michael Maoz, and Kimberly Collins, March 2006) notes that companies are placing an increasing amount of effort in field service, especially for office equipment, cable, telecommunications and durable goods manufacturers, which the firm identifies as an untapped area of securing customer satisfaction and for uncovering leads and opportunities.

As a part of the divestiture, Mercury Interactive acquires all rights to PowerHelp IT – an advanced set of ITIL-based technologies that help enable companies to take a business-centric approach to managing an enterprise service desk with low total cost of ownership. As a part of the arrangement, VSI will continue as a Mercury Alliance Partner.

About Mercury Interactive

Mercury Interactive Corporation (OTC: MERQ), the global leader in business technology optimization (BTO) software, is committed to helping customers optimize the business value of information technology. Founded in 1989, Mercury conducts business worldwide and is one of the largest enterprise software companies today. Mercury provides software and services for IT Governance, Application Delivery, and Application Management. Customers worldwide rely on Mercury offerings to govern the priorities, processes and people of IT and test and manage the quality and performance of business-critical applications. Mercury BTO offerings are complemented by technologies and services from global business partners. For more information, please visit http://www.mercury.com.

About Vertical Solutions, Inc. (VSI)

Cincinnati, OH — September 21, 2006 — Vertical Solutions, Inc. (VSI), a leading developer of Customer Relationship Management software, announces that its customer, General Binding Corp. (GBC), a developer of document finishing equipment based in Northbrook, IL, has won the 2006 CRM Innovator Award from Gartner, Inc. This is the eighth annual presentation of the CRM Excellence Awards from Gartner, Inc. (NYSE: IT), the leading provider of research and analysis on the global information technology industry. The award was presented last week at the Gartner Customer Relationship Management Summit, in Chicago, IL. GBC delivered a presentation at the Summit outlining its winning CRM strategy, which included the implementation of VSI’s PowerHelp CRM, a web-based suite of solutions that enable companies to completely manage their customer-support and field-service processes and enhance their ability to penetrate, retain, and manage their customers.