VitalStream Accelerates Growth and Adoption of Flash Video Streaming With New Services and Technology

VitalStream Accelerates Growth and Adoption of Flash Video Streaming With New Services and Technology

Company Continues to Innovate With New Software Coming Soon

IRVINE, Calif., Feb. 8 /PRNewswire-FirstCall/ -- VitalStream, Inc. (BULLETIN BOARD: VSTH) , a global content delivery network and streaming media solutions provider, today announced that it has seen continued growth and adoption of its services for Flash video streaming.

Leading companies including ABC News, Comcast, National Geographic, Target Stores and CNET rely on VitalStream to deliver communications to worldwide audiences.

"Companies that want their media to be available to the widest possible audience with the best possible experience are rapidly moving to Flash video. Media and entertainment companies, advertisers, agencies, retailers, and enterprises are taking advantage of the low hassle, seamless, and interactive nature of Flash to deliver extremely compelling web video experiences," said Chris Hock, director of product management, Macromedia. "As an early partner with Macromedia in delivering the Flash Video Streaming Service, VitalStream leads the way in guiding many customers through their first Flash video deployments with their innovative software and services."

"SpikeTV.com chose VitalStream because of their reliability, flexibility, and more importantly, their overwhelming experience in the field of Flash Video," said Kim Morgan, Director, SpikeTV Online.

"In 2003, VitalStream was the first service provider to see the potential for Flash as a ubiquitous format for delivering streaming video," said Philip N. Kaplan, VitalStream president and chief operating officer. "In 2004 we saw rapid adoption of our services for Flash. We expect 2005 to be a breakout year for Flash video streaming and intend to bolster our leadership position in the global market by continuing to develop innovative software, like MediaOps(TM) SDK, that solve the real-world business needs of VitalStream customers."

While other streaming service providers are working on first generation products for Flash, VitalStream is currently developing its third generation console expected to be available in the first half of 2005. The third- generation platform will include new features aimed at bolstering VitalStream's leadership position in the Flash video streaming marketplace including:

* Reporting Dashboard -- Working closely with today's leading agencies
and major service operators, VitalStream is creating a new reporting
system that will provide VitalStream customers with fast,
comprehensive and convenient reports.
* Additional International Network Capacity -- To help its customers
meet worldwide demand for Flash video, VitalStream is continually
upgrading its network and adding capacity.
* Exclusive Keynote Systems Streaming Perspective Monitoring for Flash
Video -- VitalStream teamed with Keynote Systems to develop the first
independent, third party solution for monitoring the quality of Flash
video streams with measurement agents distributed throughout Europe,
Japan and the United States.



Companies interested in VitalStream's new Flash-related offerings can find the latest announcements by visiting the Company at upcoming tradeshows including FlashForward2005 on April 6-8, 2005 in San Francisco and NAB2005 on April 16-21 in Las Vegas. VitalStream's full tradeshow schedule can be found at http://www.vitalstream.com/news/tradeshows.html.

About VitalStream, Inc.

VitalStream, Inc., a wholly-owned subsidiary of VitalStream Holdings, Inc. (BULLETIN BOARD: VSTH) , is a global provider of integrated content delivery services that enable businesses to broadcast digital media and communications to worldwide audiences via the Internet. The Company provides complete solutions, including audio and video streaming, live event broadcasting, media asset management, integrated web hosting and consulting services, that seamlessly integrate with today's leading streaming media technologies. To ensure a worldwide reach, VitalStream engineered its award- winning content delivery network certified for quality delivery in the United States, Europe and Asia. For more information, call 800-254-7554, or visit www.vitalstream.com.

Forward Looking Statements

This news release contains forward-looking statements made 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, slower than projected growth in the demand for our services, technical or security problems that injure our network or delivery of services, inability to develop product innovations that are timely or readily adopted in the marketplace, failure to access sufficient transmission capacity and other factors that are discussed in "Factors That May Affect Future Results" 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. VitalStream Holdings, Inc. undertakes no obligation and expressly disclaims any obligation to update or revise such forward-looking statements under any circumstances.

VitalStream is a registered trademark of VitalStream Inc. All other trademarks are property of their respective holders.

For further information please contact: Marketing of VitalStream, Inc., +1-949-743-2000, marketing@vitalstream.com.


Source: VitalStream, Inc.

CONTACT: Marketing of VitalStream, Inc., +1-949-743-2000,
marketing@vitalstream.com

Web site: http://www.vitalstream.com/news/tradeshows.html
http://www.vitalstream.com/


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