DirecPath Selects Vistula Communications to Run a Pilot Program for Consumer Voice Over IP Service

NEW YORK – August 30, 2006 - Vistula Communications Services, Inc.(OTCBB:VSTL), a global supplier of flexible and reliable Voice over Internet Protocol ("VoIP") services to major telecommunications carriers and Internet service providers, today announced the selection of its V-Cube™ platform by DirecPath to run a pilot program for the delivery of DirecPath’s consumer VoIP service offerings. DirecPath was recently formed by Hicks Holdings LLC and The DIRECTV Group, Inc. (NYSE: DTV) to provide bundled DIRECTV programming, broadband voice and data and security services to multiple dwelling unit (MDU) and gated-community owners across the United States.

Vistula will allow DirecPath to manage the communications needs of a diverse range of MDU and gated-community properties, and to add to its suite of bundled services the benefits of a secure, simplified, scalable and highly resilient VoIP infrastructure.

“ We are committed to meeting the needs of owners and residents in MDU and gated communities nationwide and providing them with a unique and compelling value proposition,” said Paul Savoldelli, chief executive officer of DirecPath. “Vistula’s hosted VoIP service will be an important part of that value proposition, enhancing our ability to include VoIP as part of our seamless, cost-effective suite of bundled services.”

Vistula will initially run a six-month pilot program, upon the successful completion of which it will provide VoIP service across a large portion of DirecPath’s customer base, Mr. Savoldelli said.

“ Our business partners’ success is our number-one priority,” said Rupert Galliers-Pratt, executive chairman and chief executive officer of Vistula Communications. “DirecPath is positioning itself for leadership in its industry, by developing an innovative suite of bundled services that will drive customer growth, win consumer loyalty, and generate higher average revenue per user.”

About DirecPath, LLC
DirecPath, LLC, a partnership between Hicks Holdings LLC and The DIRECTV Group, Inc. (NYSE: DTV), was formed in May 2006 to better serve the needs of residents living in multiple dwelling units, including apartment complexes, condominiums and town homes, and gated communities. In addition to outstanding customer service, DirecPath offers its customers a bundled selection of the full range of DIRECTV programming, broadband Internet and telephony. DirecPath’s customers benefit from a single bill, a single installation and a single call for customer service – advantages enjoyed by those living in single-family homes but not typically by MDU residents. From an MDU property owner’s perspective, this increases tenant satisfaction and eliminates the need for a satellite dish, enhancing the attractiveness of the property and enabling residents to “reclaim the balcony.”

About Vistula Communications Services, Inc.
Vistula Communications Services, Inc. (OTC Bulletin Board: VSTL) 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(TM) platform. Vistula trades on the OTCBB under the symbol: VSTL. For more information visit www.vistula.com.

This announcement shall not constitute an offer to sell or a solicitation of an offer to buy any of these securities. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

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.