FRIDAY, OCTOBER 01, 2004 10:00 AM

Vertical Computer Systems, Inc. and Its Subsidiaries Enter Into License and Marketing Agreements With Basix1, Inc.

FORT WORTH, Texas, Oct 1, 2004 /PRNewswire-FirstCall via COMTEX/ -- Vertical Computer Systems, Inc. (Vertical) (VCSY) announced today that Vertical has licensed the forums and calendar applications of its proprietary SiteFlash technology for use in the enterprise knowledge gateway software developed and distributed by Basix1, Inc. (Basix1). In addition, two of its subsidiaries, Now Solutions, Inc. (Now Solutions) and Government Internet Systems, Inc. (Government Internet Systems), have entered into marketing agreements with Basix1. Vertical shall receive a royalty fee for all sales of Basix1's products utilizing the forums and calendar applications. In connection with the marketing agreements, Government Internet Systems shall market Basix1's enterprise knowledge gateway to the Federal government sector. Pursuant to a co-marketing agreement, Now Solutions and Basix1 shall market each other's products to existing and potential customers in each company's respective market. Each company will receive a fee for sales it generates of the other party's products under these marketing agreements.

Richard Wade, the President and CEO of Vertical Computer Systems, Inc. stated: "We are very excited to announce the licensing of SiteFlash applications to Basix1. In addition, we are pleased for Government Internet Systems and Now Solutions to have the opportunity to generate sales of Basix1's products. The added functionality of Basix1 will now further enable Now Solutions to leverage seamless application integration of its best-of-breed emPath HR/Payroll into a wider range of large enterprise environments. I am also pleased to announce that Chuck Kensicki is a new director of Now Solutions."

Basix1's President, Chuck Kensicki, commented: "This agreement is a part of Basix1's continuous efforts to reach a diverse market. The customers and products of Basix1 and Vertical Computer Systems and its subsidiaries provide additional marketing channels for both companies. We look forward to a close working relationship with Vertical and its subsidiaries."

About VERTICAL COMPUTER SYSTEMS, INC.

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 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. Information on VCSY and its products can be obtained on the World Wide Web at www.vcsy.com.

About Now SOLUTIONS, INC.

Now Solutions Inc., a wholly owned subsidiary of Vertical Computer Systems, Inc., is a best-of-breed HRMS and payroll software and business solutions provider. A pioneer in HRMS solutions, Now Solutions provides the capabilities companies need to manage their ever-changing workplace in the face of today's complex requirements. Now Solutions serves 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 and Toronto to serve its customers. For information on Now Solutions and its products, visit www.nowsolutions.com.

About GOVERNMENT INTERNET SYSTEMS, INC.

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.

About BASIX1, INC.

Basix1, Inc. has developed an enterprise knowledge gateway software product that presents a single, unified view to all applications and does so within the work-context of the business process, regardless of how many "un-related" applications the user must access. Information about Basix1, Inc. or its products may be found at www.basix1.com in English.

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.

For more information about Vertical, visit the company's Web site at www.vcsy.com.

CONTACT: Equitilink, LLC, +1-877-788-1940, for Vertical Computer Systems, Inc.

Web site: http://www.equitilinkpr.com/
Web site: http://www.vcsy.com/

For more information on Now Solutions, please visit the company's Web site at www.nowsolutions.com or contact Now Solutions' Public Relations at: prinfo@nowsolutions.com.

For more information about Basix1, please visit the company's Web site at www.basix1.com in English or contact:

Email: sales@basix1.com
Tel: (714) 273 4973

SOURCE Vertical Computer Systems, Inc.
Equitilink, LLC, +1-877-788-1940, for Vertical Computer
Systems, Inc.; or Basix1, +1-714-273-4973, sales@basix1.com

www.nowsolutions.com

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