Vistula Communications and Envox IP Announce the Launch of Venezuela’s First Hosted IP-PBX Solution

Vistula’s V-Cube™ VoIP Platform Will Be Distributed and Supported Throughout Venezuela

New York and Caracas, Venezuela – September 6, 2006 - Vistula Communications Services Inc. (OTCBB: VSTL; www.vistula.com), a global supplier of flexible and reliable Voice over Internet Protocol ("VoIP") services to major telecommunications carriers and Internet service providers, announced today that Venezuela’s Envox IP, a leading telecommunications VoIP carrier will officially launch a residential and corporate/SOHO hosted IP-PBX, starting October 1st, 2006.

Vistula’s V-Cube™ will be used as the central system to deliver a range of hosted VoIP telephony products to business enterprise customers in Venezuela. Vistula will integrate its web portal set with Envox’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.

Envox will offer the Venezuelan market an array of pricing options and packages including a $29 a month plan that offers unlimited calling to the US with a US DID, and bundled corporate products that will include voice, broadband and IP-PBX functions. Additionally, Envox will focus its efforts on the very lucrative call shop market, which is a high growth, high margin business for VoIP telephony in Venezuela. Currently, there are close to 1 million broadband users in Venezuela, all of which are potential clients for Envox.

Envox IP’s initial client list includes Banco Federal and a number of major call shop operations throughout Venezuela. Banco Federal will be the first major bank to use a hosted IP-PBX service in Venezuela.

“Banks and financial institutions will be one of the most important markets we will go after,” said Jorge Sierra, Executive President of Envox. “We will take full advantage of our first-to-market position to introduce our products to banks, insurance companies, stock brokers and many other corporate clients that have multiple sites.”

Rupert Galliers-Pratt, Chairman and CEO, Vistula, commented, “We believe that Envox IP is the right partner for Vistula as we continue to deploy our platform in the South American market. Envox 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 Envox to capitalize on the substantial opportunity that Venezuela provides at this time.”

About Envox
Envox is the first Venezuelan telecommunications carrier to run a pure VoIP service. With the backing of a strong management team and a significant financial institution, it has positioned itself as the first true regulated VoIP carrier in Venezuela. 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.

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. 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 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.