Vertical Computer Systems, Inc.'s Claim Against Ross Systems, Inc. is Reinstated

FORT WORTH, Texas, Oct 28, 2004 /PRNewswire-FirstCall via COMTEX/ -- Vertical Computer Systems, Inc. (Vertical) (VCSY) announced today that the Supreme Court of the State of New York Appellate Division, First Department, on October 26, 2004, granted Vertical's appeal of the dismissal of Vertical's claim, on behalf of its subsidiary Now Solutions ("Now Solutions"), against Ross Systems, Inc. ("Ross"). Accordingly, the Court reinstated Vertical's action against Ross for breach of contract in the amount of $3,562,201.22 for maintenance fee adjustment credits on the sale of Ross' HR/Payroll software business to Now, indemnity for the same and attorney's fees. In doing so, the Court also rejected Ross' defense that Vertical lacked authority to bring the action on behalf of Now Solutions.

Reacting to the decision, Richard Wade, President of Vertical stated: "the company was vindicated regarding its claims against Ross and Vertical will move aggressively to seek a final judgment in order to protect and enhance shareholder value."

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward-looking statement.


Vertical Computer Systems, Inc. (VCSY) is a multinational provider of administrative software, Internet core technologies, and derivative software application products through its distribution network. VCSY's main administrative software product is emPath 6.3, which is developed and distributed by Now Solutions, Inc., the Company's wholly-owned subsidiary. VCSY's primary Internet core technologies include SiteFlash, ResponseFlash, NewsFlash, and the Emily XML Scripting Language, which can be used to build web services.


Government Internet Solutions, Inc., a majority-owned subsidiary of VCSY, has licensed web-based proprietary technology from VCSY for use by federal, state, and local governments of the United States. Government Internet Solutions, Inc is currently marketing ResponseFlash(TM), an emergency communications management product to government entities in the United States.

For more information about Vertical, visit the company's Web site at

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Vertical Computer Systems, Inc.

SOURCE: Vertical Computer Systems, Inc.