Vistula Communications & HFCL Infotel Ltd to Launch Consumer VoIP offering in India

Vistula Partners With One of India’s Most Valuable Private Sector Companies To Create Competitive Advantage in the Fastest Growing Telecom Market

NEW YORK – Vistula Communications Services, Inc. (OTCBB: VSTL), a global supplier of flexible and reliable Voice over IP (“VoIP”) services to major telecommunications carriers, cable operators and Internet Service Providers, announced today that it has partnered with HFCL Infotel Ltd. (HITL), the first private telephony operator in Punjab, a region in Northern India and the east side of Pakistan, to launch the first niche consumer VoIP service in India.

Under the terms of the agreement, Vistula will integrate its V-Cube™ VoIP platform with HITL’s network, giving HITL a turn-key consumer VoIP service to market to retail and business clients. The system will be fully hosted and managed by Vistula. HITL is expecting to launch the Vistula-enabled VoIP service in Q1 2006. Additionally Vistula will be providing HITL with a pre-paid calling card solution which will give customers the ability to easily pay for international calls from virtually any computer terminal. The cards will be available at various retail outlets across Punjab initially and subsequently to other markets across India.

“ The combination of Vistula’s proven success in the VoIP industry, the fact that we can expect to launch the service within weeks of signing the contract and the calling card solution, which we believe has a great potential in India, were the most exciting propositions for us in choosing Vistula,” said Mahendra Nahata, Chairman of HITL. “With Vistula’s help we’ll be able to bring the first niche VoIP service of its kind to India that will certainly attract customers both domestically and internationally. We are confident of an excellent customer response to this service which will be initially marketed to more than 300,000 of HITL’s already large subscriber base in Punjab.”

Vistula’sV-Cube™ based system will provide HITL with a customer web portal, soft-phone downloads and full VoIP on-net and off-net capabilities. In addition, V-Cube’s new billing capabilities will also integrate seamlessly with HITL’s existing billing platforms. Vistula will be building and managing the system for HITL as well as providing them with round the clock support.

“ We are delighted to have been selected by HITL as their supplier of VoIP services to this market. HITL is a rapidly growing telecommunications company in India with a state-of-the-art network in Punjab. Their knowledge and expertise in providing telecommunication services will ensure a successful and timely implementation of this project. India’s VoIP market is valued at nearly $2.8 billion, and by fully leveraging our V-Cube™ platform, HITL will be well positioned to capture a sizeable chunk of this underserved market,” said Rupert Galliers-Pratt, Chairman and Chief Executive Officer, Vistula Communications. “This project with HITL is the latest in a string of major global deals and effectively supports our position as one of the leading suppliers of VoIP services and solutions to major carriers and Internet Service Providers around the world.”

About HITL
HFCL Infotel Ltd. (HITL) is the first private telecom services company providing the complete suite of services that include fixed line telephony, mobile telephony, broadband internet, data networking solutions and a host of value added services that includes video conferencing, in the Punjab market and is set to expand into other Indian states shortly. Its state-of-the-art technology and customer-focused marketing has enabled rapid growth of its businesses since its launch 5 years ago. The company has just launched the first Triple Play (High-speed Internet, Telephony and Cable TV) service in India that has reinforced its credentials as a technology leader that creates and leverages the primary mover advantage to build successful businesses.
HITL is a group company of the Himachal Futuristic Communications Limited (HFCL) group, a leading telecommunications company that provides cost effective advanced telecom solutions in India. The company is focused on developing state-of-the-art technologies and intellectual property to maintain its competitive leadership and a sustained long-term growth.

About Vistula
Vistula is a telecommunications company providing hosted, managed VoIP (Voice over Internet Protocol) services to carriers, cable operators, service providers and transit network operators around the world. Vistula enables telecommunications providers to rapidly deploy VoIP services over converged infrastructure through an integrated applications suite. Vistula’s clients include Telstra Global business unit, IUSACom, and Saigon PostTel among other international carriers and ISPs that have installed or are currently testing the V-Cube™ platform. Vistula trades on the OTCBB under the symbol: VSTL. For more information visit: www.vistula.com.

" 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.