Vistula Communications Announces Five Year Contract with ITC S.A.

Vistula V-Cube™ VoIP will be Distributed and Supported in Argentina

New York – July 25th, 2006 - Vistula Communications Services Inc ( “ Vistula ” ) (OTCBB: VSTL) announced today that ITC, a fast-growing, leading telecommunications carrier and business Internet Service Provider in Argentina, signed a five year contract to distribute Vistula ’ s V-Cube VoIP platform in Argentina. This would be the second V-Cube to be installed and launched in Argentina by Vistula Communications Services.

V-Cube™ will be used as the central system to deliver a range of hosted VoIP telephony products to business enterprise customers in Argentina. Vistula will integrate its web portal set with ITC ’ s existing client and operational systems to give a cohesive client front end. This will facilitate client sign-up and allow those clients straightforward control of their telephony environment.

The system has been officially launched and offered to customers starting July 1st, 2006. Due to the fast integration and deployment process, ITC has been able to install and launch the service well within the time frame estimated.

ITC will initially market Vistula’s IP-PBX to it’s existing broadband clients, and Vistula’s call shop solution to certain cyber cafes it currently services. Both of these products are based on the V-Cube platform. ITC currently services approximately 2000 corporate clients, each with an average of 8-10 extensions, and about 100 cyber cafes. Each cyber café has a potential of 4-6 call shop extensions. Due to ITC’s long standing relationship with clients, their immediate goal is to capture 50% of their corporate users, and about 30% of its cyber cafes.

Marcelo Moreno, COO of ITC, said, “This is a very exciting business development for us. We will offer an innovative and competitive VoIP telephony service in Argentina. We anticipate significant demand from our existing clients and we believe that the V-Cube platform will attract new customers to ITC’s existing products and services. The V-Cube platform allows us to bring world-class VoIP products to our clients, all in a time frame very difficult to match by the competition. This has allowed us to be one of the first ISPs to bring VoIP telephony to the Argentinean market”.

Rupert Galliers-Pratt, Chairman and CEO, Vistula, commented, “We believe that ITC is the right partner for Vistula as we continue to deploy our platform in the South American market. ITC has constructed a high capacity, high quality network that will serve as the launching platform for rapid deployment of Vistula’s VoIP product suite.

We look forward to working closely with ITC to capitalize on the substantial opportunity that Argentina provides at this time.”

About ITC

TC has established itself as one of the most innovative ISPs in the sector. The company was one of the first pioneers of broadband internet in Argentina, developing one of the first commercial LAN broadband. The company’s philosophy is to provide and constantly seek to improve the range of value-for-money products and services and to back these up by first class customer support. The fact that the majority of customers have come from personal recommendation is testimony to the company ’ s core beliefs that ITC has undeniably established its credentials as one of the most innovative companies in Argentina, reacting quickly to take advantage of the latest technological developments for its clients. ITC has one of the best reputations amongst ISPs in Argentina, for quality of service, innovation and customer loyalty.

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.

"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 Communications Services ’ SEC reports, including those detailed in our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2004. Vistula Communications Services disclaims any intent or obligation to update any forward-looking statements.

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