Vistula Communications Services, Inc. Completes $8.4 Million Private Placement

For Immediate Release

New York – March 8, 2005

Vistula Communications Services, Inc., a telecommunications company that provides hosted, managed VoIP services to carriers, service providers and transit network operators throughout the world, announced today that the Company has completed an $8.4 million private placement. The transaction involved the sale of 8% convertible debentures to a small group of sophisticated institutional investors. Indigo Securities LLC acted as placement agent for the transaction.

Rupert Galliers-Pratt, Chairman of Vistula, stated, “The closing of this round of financing further validates our business plan and the projected growth of our company. The quality of the leading institutional investors that have invested in our company also confirms our view of the VoIP market potential that we are addressing.”

About Vistula Communications Services, Inc.

Vistula Communications Services Inc (Vistula) is a supplier of Internet enabled voice services for telcos and service providers around the world. The company’s core product, V-Cube™, is a uniquely featured IPBX that facilitates full contact communication services including Voice, Video, Conferencing, Call Centre, IVR, Multi/Sub-Domain and Unified Messaging across enterprise and public networks. Utilizing V-Cube™, Vistula offers a tailored software set that enables carriers, service providers and transit network operators to rapidly roll out a flexible range of managed VoIP based product and service offerings to their customers. The Company is headquarted in New York with overseas offices in London and Johannesburg. For more information, see www.vistula.com.

©2005 Vistula Communications Services, Inc. All rights reserved. V-Cube™ is a trademark of Vistula Communications Services, Inc.

“Safe Harbor Statement” under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Vistula Communication Services, Inc.’s business that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that these statements involve risks and uncertainties, are only predictions and may differ materially from actual future events and results. For a discussion of such risks and uncertainties, see “Factors Affecting Future Performance” in the Company’s Registration Statement on Form 10-SB, File Number 000-50758, as amended, filed with the Securities and Exchange Commission.

Contact:
Tim Clemensen
Sr.Vice President
Rubenstein Investor Relations
1345 Avenue of the Americas
New York, NY 10105
Tel: +1 212 843 9337
E-mail: tclemensen@rubensteinpr.com

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