Distinguished Technology Researcher Joins VCSY Team; Inventor licenses full-motion fiber-optic image transmission innovation to VCSY

LOS ANGELES, CA, May 24, 2001 – Vertical Computer Systems, Inc. (OTCBB: VCSY) announced today that Industrial Automation Engineer Aluizio Cruz has become a consultant to the Company. Mr. Cruz has lectured, researched and written widely in the areas of industrial automation and telecommunications. For the past five years, he has conducted research in the field of fiber optics, saying “I envision optics communication as the next technological frontier.” Among other distinctions, he is a co-holder of a patent pending for an Internet-based video switch that permits true video transmission over minimal bandwidth.

Mr. Cruz has granted an exclusive license of his patent-pending fiber optic image encoding technology to Vertical Computer Systems, Inc. His system provides an efficient means for transmitting full-motion images over long-haul fiber optic connections. It is designed to deliver video images with clarity and precision, representing a significant improvement over other fiber-optic technologies developed to date.

Having served as a technology consultant since 1988, Mr. Cruz has worked on a wide range of projects in teleconferencing, distance learning and tele-medicine systems, software automation development, robotic and automation instrumentation and process control. A speaker of Portuguese, English, Italian, French and Spanish, Mr. Cruz has participated in multi-government engineering projects in the U.S., Brazil, Italy, Germany, Costa Rica, and Japan involving U.S., Japanese, Dutch and Brazilian companies, and has studied in the U.S., France, Brazil, Italy and Japan. He earned a Bachelor of Science degree from Pontific University, Brazil, and earned a Certificate in Automation and Project Management in Italy and an MS Equivalent Certificate in Process Control Engineering at the Hitachi Research Center in Japan.

“Vertical Computer Systems is fortunate and proud to be working with such an eminent and multitalented expert as Aluizio Cruz,” commented Richard Wade, President of Vertical Computer Systems, Inc. “His work in enhancing fiber-optic communications allows us to extend our technology portfolio into that exciting area, which many industry observers agree has the potential to dramatically enhance the state of the art in data transmission. We look forward to leveraging the power of our Home Country Gateways to market his fiber-optic innovations worldwide.”

“I am excited and looking forward to an innovative partnership with Vertical Computer Systems,” said Mr. Cruz. “Recent researches have found ‘strange, amazing non-linear behavior’ in fiber-optic signals, and this suggests the possibility of surprising new discoveries. Basic science always leads the way in which technology evolves and has a major bearing on life in our modern world, which depends on ever more complex and integrative technologies. Vertical Computer Systems shares with me an appreciation of the need to integrate widely scattered research into effective technology and put it to practical use.”

About Vertical Computer Systems, Inc.

Vertical Computer Systems, Inc. is a leading provider of Web-based multilingual gateways, developer of proprietary software and e-commerce solutions. The company is based in the United States. VCSY's products and services, technology and distribution channels complement each other and are supported by its e-commerce business model, the Home Country Gateways (HCGs).

Utilizing its growing global network of online HCGs, the company offers B2B, B2G and B2C solutions through its wide range of accessible resources that specifically cater to the needs and desires of targeted communities around the world. VCSY has also acquired Globalfare.com -- a complete online travel information center at www.globalfare.com.

At present, VCSY has five HCGs in operation: www.theWorldBridge.com, www.theIndiaBridge.com, www.theUSBridge.com, www.theBrazilBridge.com, www.theChinaBridge.com, and is working to establish other HCG partnerships, including www.theKoreaBridge.com.

The company is continuously developing Emily(TM) Solutions, (www.emilysolutions.com), proprietary XML-based technology providing unique software for e-commerce, information technologies, Web-based data management and process control. VCSY also offers a free, easy and personalized e-mail service for all Web users (www.thepostmaster.net). For more information, visit the company's Web site at www.vcsy.com.

This release contains, in addition to historical information, forward-looking statements. These statements are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that may cause such a difference include, but are not limited to, competition from other portals, the company's ability to integrate and market the Emily(TM) software, the market reception to VCSY'S new products, the potential benefits to customers, the conversion of sales leads into customers and the ramp-up of ASP users and other factors over which VCSY may have little or no control such as those described in the company's filings with the SEC.