New York – October 3, 2005

Vistula Communications Services, Inc. (“Vistula”) announced today that it has signed a Memorandum of Understanding with Saigon Post and Telecommunications Services Corporation (“SPT”) for the implementation of Vistula’s V-Cube™ VoIP platform in Vietnam.

Following installation and testing by SPT, Vistula expects to enter into an agreement with SPT under which SPT will implement V-Cube™ as the core engine delivering a range of VoIP telephony services to the Vietnamese market. SPT will market these services to its extensive existing client base as well as to new business and residential end-users.

Trinh Dinh Khuong, Director General of SPT said, “According to SPT’s policy of providing the latest technologies to our customers, SPT will launch new services that are high in quality and low in cost and that will better serve our customers. Saigon Postel has completed a review of Vistula’s V-Cube™ VoIP platform and is excited to have the opportunity to offer the VoIP services provided by the V-Cube™ to our customer base in Vietnam and overseas. We are happy to have Vistula as a strategic partner. We expect to finalize our agreements once the initial installation and testing is complete."

Rupert Galliers-Pratt, Chairman and CEO of Vistula, commented, “This is a significant step for Vistula with this first installation of V-Cube™ with a national PTT in their home market and we are obviously delighted with this relationship. We look forward to the successful installation and to SPT marketing services across Vietnam and to Vietnamese people throughout the world.

About SPT

Established in the mid 90s and after ten years of business operation and growth, SPT has successfully built up its brand name in the domestic and international post and telecom markets. SPT is one of the three leading post and telecommunications carriers in Vietnam. SPT offers a wide range of services from building and operating national VoIP and mobile networks to providing posts and telecommunications.

About Vistula

Vistula is a telecommunications company providing hosted, managed VoIP (Voice over Internet Protocol) services to carriers, service providers and transit network operators. Vistula features solutions that enable telecommunications providers to rapidly deploy VoIP services over converged infrastructure through an integrated applications suite. Vistula Communications trades on the OTCBB under the symbol: VSTL.

" Forward-Looking Statements''

This press release contains certain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, which reflect management's expectations regarding future events and speak only as of the date hereof. Our actual results, performance or achievements may differ significantly from the results, performance or achievements discussed in or implied by the forward-looking statements. Factors that could cause such a difference include material changes in our business or prospects, difficulties obtaining financing to fund our operations, failure to establish brand recognition for our products, failure to retain existing customers or attract new customers, failure to compete effectively in our industry, general market and economic conditions, and other factors that are detailed from time to time in Vistula’s SEC reports, including those detailed in our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2004. Vistula disclaims any intent or obligation to update any forward-looking statements.

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