VitalStream Not to Effect Reverse Split by Year End

VitalStream Holdings, Inc. (www.vitalstream.com) announced that it will not effect a reverse split of its common stock in December 2004.

The Company's current authorization to enact a reverse split was approved by the Company's shareholders at the Annual Meeting of Shareholders held on June 28, 2004, and expires on December 31, 2004.

"The Company has not acted upon the authorization and does not intend to do so prior to its expiration at year-end," said Phillip N. Kaplan, president and chief operating officer.

VitalStream, Inc., a wholly-owned subsidiary of VitalStream Holdings, Inc. (www.vitalstream.com) provider of integrated content delivery services that enable businesses to broadcast their digital media and communications to worldwide audiences via the Internet.

"Based on our continuing revenue growth, including a 51 percent increase in year-over-year revenues in the third quarter, we believe that the Company has a promising future through both growing demand for our products and services, and through strategic M&A opportunities. We are confident that the market will recognize the value of our Company in the months ahead, and we intend to achieve listing on the NASDAQ Small Cap Market or another national exchange in the second quarter of 2005," Kaplan added.