VitalStream Broadcasts Podcasting Service to Content Delivery Customers; Allows Businesses of All Sizes to Deliver Audio and Video Content Directly to Subscribers

IRVINE, Calif.--(BUSINESS WIRE)--Dec. 6, 2005--VitalStream, Inc. (OTCBB:VSTH), the world leader in video streaming, has added podcasting to its Content Delivery Service product line, empowering VitalStream customers to deliver audio and video podcasts for immediate playback on portable devices and desktop media players.

VitalStream now meets the demands of its customers in the entertainment, advertising, sports and broadcast markets who need a reliable, secure platform to provide podcasts to subscribers. Through MediaConsole(R), VitalStream's workflow management toolset, content owners can manage and deliver podcasts and other rich media. In addition to IPTV and digital rights management, podcasting is one of the quality, tailored solutions VitalStream provides for its customers with specific streaming needs.

With VitalStream's podcasting service, its customers' subscribers can search for podcasts and listen to radio shows, watch movie trailers, and get informed with up-to-date news, entertainment and sports content. Podcasts can be published to iTunes, and subscribers are notified of new content files automatically as they become available.

"The future of streaming and on-demand media is only limited by the number of screens and user access points," said Paul A. Palumbo, research director at AccuStream iMedia Research. "Our analysis suggests that rights holders and media companies are embracing podcasting rapidly and promoting it by making these content threads available in prominent positions on their sites and user touch points. We believe mobile media playback devices are going to become more mainstream, and provide additional opportunities for CDNs with streaming and download application expertise."

"As the need for on-demand content increases, VitalStream customers are looking for a delivery solution like podcasting to satisfy their subscribers' needs," said Philip N. Kaplan, president and COO of VitalStream. "Our latest enhanced service offering reinforces VitalStream's industry leadership and dedication to providing customized, flexible, end-to-end solutions for content producers."

VitalStream's podcasting solution is available immediately with PlayStream, the company's solution for small businesses, and will be available with VitalStream's enterprise solutions by mid-December 2005. For more information, please visit www.vitalstream.com.

About VitalStream

VitalStream, Inc., a wholly owned subsidiary of VitalStream Holdings, Inc. (OTCBB:VSTH), is a world leader in streaming solutions and an international content delivery network that provides the reliable choice for delivering streaming media to global audiences. VitalStream provides complete solutions, including video and audio streaming, live event broadcasting, media asset management and consulting services that seamlessly integrate with today's leading streaming media technologies. VitalStream's innovative tool set streamlines the process of delivering the leading streaming media formats, Macromedia(R) Flash(TM) and Microsoft(R) Windows Media(R), over the Internet. VitalStream's worldwide content delivery network is certified for quality transfer in the United States, Europe and Asia and delivers much of today's most popular online media. VitalStream serves an international customer base including Fortune 500 corporations, movie studios, news broadcasters, music and radio companies, advertising agencies and educational institutions. For more information, visit www.vitalstream.com.

Forward-Looking Statements

This news release contains forward-looking statements made by VitalStream in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ materially from those indicated by these statements as a result of various important factors including, but not limited to, the risk that our customers may not use our new or existing products and services at the projected rate or may cease using our services, the future demand for our products and services generally is subject to various uncertainties, our new product or service offerings may not predictably be accepted by our customers, or prospective customers or consumers, or perform as anticipated, current trends in user or consumer preferences may not continue, we may be unable to keep up with evolving industry standards and changing user and consumer needs, demands or preferences, our network security and performance may be adversely affected by both internal and external causes, and other factors that are discussed in "Risk Factors" and elsewhere in the Annual Report on Form 10-K of VitalStream Holdings, Inc. and other documents periodically filed by VitalStream Holdings, Inc. with the SEC. Such forward-looking statements speak only as of the date of this release. The company is under no obligation and expressly disclaims any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

VitalStream and MediaConsole are registered trademarks of, VitalStream, Inc. All other names or marks are the property of their respective owners.