Vistula Announces that Telstra Europe Ltd Completes Implementation of Vistula’s V-Cube Platform

Vistula Announces that Telstra Europe Ltd is To Launch Diverse Range of Hosted VoIP PBX Services in Q4

For Immediate Release

New York - September 6, 2005 - Vistula Communications Services, Inc. (OTCBB: VSTL) announced today that Telstra Europe, Ltd., a wholly-owned subsidiary of Telstra Corporation, Ltd. ((ASX:TLS)), Australia’s leading communications company, has formally signed off on the technical implementation of Vistula’s V-Cube platform, which was the final clearance stage before full product launch by Telstra in the UK.

V-Cube™ is the central VoIP engine that Telstra is using to launch its range of Hosted VoIP PBX services to client groups in the UK and Ireland.

Telstra is on target for its VoIP products going live in October of this year, although some customers have been using the services successfully since June.

Dave Thorn, Chief Executive Officer of Telstra Europe, said “We set ourselves an extremely aggressive launch target and are delighted with the progress we have made in creating our product set in line with the requirements of our Sales and Marketing divisions. We have been working hand in hand with Vistula’s engineers for some months and feel that we have achieved everything that the company promised. We look forward to the next phase when we bring our paying customers on-line. We already have a healthy pipeline of enquiries for our service due to its feature rich applications and market leading price point and expect to make a series of customer announcements shortly.”

Rupert Galliers-Pratt, Chairman and CEO of Vistula, commented – “This is a significant event for Vistula with V-Cube reaching its go-live status with a major Tier 1 carrier, we are obviously delighted with the progress to date and look forward to Telstra’s success in the UK and Irish markets.”

About Telstra Europe

Telstra Europe is a wholly-owned subsidiary of Telstra Corporation (ASX:TLS). It has been operational in Europe for over 13 years, providing leading edge voice, mobility and data solutions to many of the world’s largest corporations and value-added resellers and partners. It is a full telecoms service provider, supporting over 10,000 enterprise customers in the UK, and owns and operates a 1,400 km all-SDH network passing through major UK cities. It has switches and data nodes in London, Birmingham, Cambridge and Manchester and 20 co-location points throughout the UK. Telstra Europe sells an extensive range of domestic and international services to medium sized business and multinational corporations in the UK.

Telstra Corporation is a full service global telecommunications company. It has been ranked as the 5th best performing telco* in the world.

*Source: commNow, international telecom research October 2003

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 Communications trades on the OTCBB under the symbol: VSTL.

"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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