X0202 4 2006-12-01 0 0000877931 Vertical Communications, Inc. VRCC 0001044321 MARXE AUSTIN W & GREENHOUSE DAVID M C/O SPECIAL SITUATIONS FUNDS 527 MADISON AVENUE, SUITE 2600 NEW YORK NY 10022 0 0 1 0 Warrants 0.1667 2006-09-30 4 J 0 1491691 0 D 2001-08-08 2006-09-30 Common Stock 248615 0 I By Limited Partnerships Warrants 0.1667 2006-09-30 4 J 0 516435 0 D 2004-11-14 2006-09-30 Common Stock 86072 0 I By Limited Partnerships Convertible Preferred 0.53 2006-12-01 4 P 0 2400 1000 A 2006-12-01 1988-08-08 Common Stock 4528300 2400 I By Limited Parterships Warrants expired on 9/30/06. The expiration date is determined by the occurrence of various events as outlined in the Certificate of Powers, Designations, Preferences and Rights of the Series E Convertible Preferred Stock. This is a joint filing by Austin W. Marxe (Marxe) & David M. Greenhouse (Greenhouse). They share voting & investment control over all securities owned by Special Situations Fund III QP, L.P. (SSFQP), Special Situations Cayman Fund, L.P. (Cay), Special Situations Private Equity Fund, LP (PE), Special Situations Technology Fund, L.P. (Tech) & Special Situations Technology II, L.P. (Tech II), respectively. 5,831,195 CS, 149,866 Wts, & 1,250 PS to purchase 2,358,491 CS are owned by SSFQP, 2,011,310 CS, 53,206 Wts & 425 PS to purchase 801,887 CS are owned by Cay, 1,963,649 CS, 51,930 Wts & 425 PS to purchase 801,887 CS are owned by PE, 188,765 CS, 4,476 Wts & 50 PS to purchase 94,340 CS are owned by Tech and 1,038,138 CS, 22,515 Wts & 250 PS to purchase 471,698 CS are owned by Tech II. The interest of Marxe & Greenhouse in the shares of CS, Wts & PS owned by SSFQP, Cay, PE, Tech, & Tech II is limited to the extent of his pecuniary interest. Austin W. Marxe 2006-12-13 David M. Greenhouse 2006-12-13