VitalStream Delivers Live Macromedia Flash™ Video Content

VitalStream is first service provider to deliver live Flash video
via a global content delivery network

HostReview.com
Wednesday, July 7, 2004; 12:00 AM

New York, FLASHFORWARD2004, July 7, 2004 –VitalStream, Inc. (OTC Bulletin Board: VSTH), a global provider of integrated content delivery and streaming media services, today announced its ability to deliver live Macromedia Flash™ video content via a worldwide content delivery network. The new service is the result of joint development efforts between Macromedia® and VitalStream®.

Flash Video Streaming Service powered by VitalStream now enables companies to stream live events, live rich media advertising campaigns, and other live broadcasts across a high-performance, reliable content delivery network.

"VitalStream is excited to announce another Flash video service, further strengthening our commitment to Macromedia by delivering streaming solutions to meet market demand for Flash," said Paul Summers, president and chief executive officer of VitalStream, Inc. "This service allows customers to deliver great user experiences as even more live content continues to be broadcast on the web."

With the launch of Flash Video Streaming Service, VitalStream is also introducing FVSS Project Manager 2.0 Live Edition, the new version of VitalStream's essential suite of streaming tools for Flash video. The live edition incorporates new tools to support live video streaming including several new professionally designed video control skins and a live encoder. The new live encoder is an application featuring a streamlined interface enabling VitalStream customers to encode and stream their live Flash video.

"Flash video is being adopted by companies because it enables them to provide a great seamless experience across a wide number of platforms," said Chris Hock, director of product management, Macromedia. "Adding support for live video as well as on-demand video to the Flash Video Streaming Service powered by VitalStream opens up even more possibilities to our customers."

VitalStream will be featuring the new Flash Video Streaming Service at Flashforward2004 in booth #9 at The New York Hotel, New York City, July 7-9. The service is also immediately available and can be ordered by calling (800) 254-7554. For more information visit http://www.vitalstream.com/macromedia/

About VitalStream, Inc.
VitalStream, Inc., a wholly-owned subsidiary of VitalStream Holdings, Inc. (OTC: VSTH), is a global provider of integrated content delivery services that enable businesses to broadcast their 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.

Media Contact: Laura Hill Director of Marketing VitalStream, Inc. 949/417-2092 lhill@vitalstream.com