Vertical Computer Systems Addresses Liquidity and Capital Resource Issues

LOS ANGELES, Oct 31, 2002 -- Vertical Computer Systems, Inc. (OTC Bulletin Board: VCSY - News; Vertical) is pleased to announce that its majority owned subsidiary, NOW Solutions, LLC ("Now Solutions") and its third party lender have agreed to amend the Loan and Security Agreement, dated February 28, 2001 (the "Loan Agreement") and Vertical and the lender have agreed to amend the Deposit Account Pledge Agreement, dated February 28, 2001 (the "Deposit Pledge Agreement"). The Deposit Pledge Agreement amendment frees up a portion of Vertical's $1,500,000 pledge, a restricted cash item listed in previous SEC filings, which is used as collateral to secure a portion of Now Solutions' LLC loan. Now Solutions LLC is no longer in default with its lender. Further details are available in Vertical's 8-K filing of October 23, 2002.

About Vertical Computer Systems, Inc.

Vertical Computer Systems, Inc. is a multinational provider of Web services, underpinning Web technologies, and administrative software services through its Global Partners System, a worldwide distribution network. Vertical provides Web applications and services targeted at specific market needs in business and government organizations, such as emergency response, news media, procurement, education, ecommerce, and human resources. Vertical also provides underpinning Web and Internet technologies that can be leveraged across all of its target markets. Vertical's software products include the Emily(TM) XML Enabler Agent, ResponseFlash(TM), SiteFlash(TM), UniversityFlash(TM), Newsflash(TM), and the Focal Point Search Engine(TM). For more information on Vertical Computer Systems, visit the company's Web site at

About NOW Solutions, LLC

NOW Solutions, LLC, a majority owned subsidiary of Vertical Computer Systems, Inc., is a best-of-breed HRIS and payroll software and business solutions provider. A pioneer in HRIS solutions, NOW Solutions provides the capabilities companies need to manage their ever-changing workplace in the face of today's complex requirements. NOW Solutions is a respected business partner serving hundreds of customers throughout the United States and Canada. NOW Solutions' presence can be found in industries including education, for profit services, healthcare, high technology and communications, insurance, manufacturing, natural resources, not for profit, public sector, retail, transportation, and utilities. NOW Solutions has offices in Fort Worth, San Francisco Bay Area, and Toronto to serve its customers. Information on NOW Solutions and its products can be obtained on the World Wide Web at

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