VISTULA COMMUNICATIONS SERVICES, INC. COMPLETES $16.3 MILLION PRIVATE PLACEMENT

NEW YORK – May 22, 2006 -- Vistula Communications Services, Inc. (OTC Bulletin Board: VSTL), a global supplier of flexible and reliable Voice over Internet Protocol ("VoIP") services to major telecommunications carriers and Internet Service Providers, today announced it had completed a $16.3 million private placement. The transaction involved the sale of 16.3 million shares of common stock and warrants to purchase an additional 13.04 million shares of common stock to a select group of accredited institutional investors. Vistula is required to file a registration statement covering the common stock purchased by the investors and the common stock underlying the warrants within 45 days of the closing. CRT Capital Group LLC served as the placement agent for the transaction.

This financing will provide the funds necessary for Vistula to complete its purchase of the hosted V-Cube™ IP-PBX solution, which serves as Vistula’s core Voice over IP technology offering, and associated intellectual property rights. The V-Cube™ solution facilitates full contact communication services including Voice, Video, Conferencing, Call Contact Center, IVRS, across enterprise IP networks and provides a centralized administration, provisioning and maintenance interface. V-Cube™ offers a flexible cost effective IP Communication solution with Personal Call Control.

“The successful closing of this financing round enables Vistula to complete the acquisition of the software which powers our hosted IP-PBX solution. This is an important step forward in advancing shareholder value,” said Rupert Galliers-Pratt, Vistula’s Executive Chairman.

“The acquisition of the V-Cube™ and associated intellectual property rights is testament to our commitment to become one of the leading suppliers of Hosted IP PBX systems in a market which is expected to grow from US$1.5b in 2007 to US$38b by 2015,” added Mr. Galliers-Pratt.

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. Vistula features solutions that enable telecommunications providers to rapidly deploy VoIP services over converged infrastructure through an integrated applications suite. Vistula has already signed Telstra Global business unit, as well as IUSACom in Mexico, among many 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: http://www.vistula.com.

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, 2005. Vistula disclaims any intent or obligation to update any forward-looking statements.

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