Vertical Computer Systems, Inc. To Merge With Reporting Company


LOS ANGELES, Apr 6, 2000 (BUSINESS WIRE) -- Vertical Computer Systems, Inc. (OTCBB:VCSY) announced today that it has acquired 100% of the issued and outstanding shares of Scientific Fuel Technology, Inc. ("Scientific"), a fully reporting public shell corporation. As a result of the acquisition, shareholders of Scientific would become shareholders of Vertical Computer Systems, Inc.("Vertical"), and Scientific becomes a wholly owned subsidiary of Vertical. As a result of obtaining absolute control of Scientific, Vertical has positioned itself to merge with Scientific in the next thirty days and then assume the reporting obligations of Scientific. Upon completion of the merger and under the provisions of Rule 12 of the Exchange Act, Vertical would become a fully reporting 1934 Act company. Pursuant to new policies instituted by the NASD, Vertical will retain an "E" on its symbol trading as "VCSYE" for a period of 30 days from the merger date until the combined audited statements are attached to the 8-K filing.

Richard Wade, Vertical Computer Systems, Inc. President stated, "We had anticipated originally merging with Scientific to April 6, 2000 to ensure compliance with the new rules regarding reporting status and maintain our listing on the Over The Counter Bulletin Board. Recently, and without notice, the NASD changed its policy regarding its acknowledgment of reporting status by requiring combined proforma financials to accompany the 8-K filing before becoming deemed a fully reporting company. Vertical Computer Systems' management wants its shareholders and investors to realize that we are conscious of the importance of its OTC listing status, and we are taking all appropriate measures and steps towards making Vertical Computer Systems a fully reporting company. Additionally, BDO Seidman has been engaged by Externet World, Inc. and Vertical Computer Systems, Inc. to serve as their independent auditors and to provide the audited financial statements required in the 8-K filings."

About Vertical Computer Systems


Vertical Computer Systems, Inc. is a multi-lingual portal provider, and e-commerce solutions company, based in the United States. The Company provides a full range of Internet services that include building e-commerce solutions nationally and internationally, distributing content via its multi- lingual portal network (http://www.TheChinaBridge.com); and Internet services (http://www.thepostmaster.net). Through its majority-owned subsidiary, Externet World, Inc., the Company provides online shopping services (http://www.ShoppingInternet.com) and proprietary online gaming software (http://www.ccpsoftware.com). Vertical Computer Systems is committed to building e-commerce communities on the Internet in the Americas, Europe, Asia and Pacific Rim.

SOURCE: Vertical Computer Systems, Inc.