VitalStream Opens Two New Offices to Expand Global Network; New York Presence and European Media Hosting Capabilities Further Company's Momentum

Business Wire, April 4, 2005

IRVINE, Calif. -- VitalStream, Inc. (OTCBB:VSTH), a global content delivery network (CDN) and streaming media solutions provider, launched two new facilities as part of its 2005 strategic business development plans. The recent consolidation of the CDN space signals increased opportunity and VitalStream continues to expand by opening an additional sales office in New York to better serve East Coast customers while the new data center in Amsterdam offers more advanced streaming services to organizations across Europe. E[acute accent]Located in the media industry hub, the New York office will give VitalStream access to Fortune 500 companies that require advanced streaming technology. These include media and entertainment, advertising and corporate enterprise organizations. The VitalStream network is specifically built to support streaming audio and video over the Internet, assisting companies wishing to distribute their media online to targeted audiences. E[acute accent]VitalStream opened its Amsterdam-based data center to provide local media hosting services and strengthen its CDN reach throughout Europe, offering the highest quality streaming and hosting services for international organizations. VitalStream will continue its strategy of growing its presence in the European marketplace and is planning for overseas customers to make up a significant percentage of its customer base by the end of 2005. E[acute accent]As customers continue to source multiple vendors to meet their streaming and CDN needs, VitalStream's expansion strengthens its position to be either the primary or second source and serve customer requirements. E[acute accent]"VitalStream's recent expansion meets the company's long-term plans for increased revenues, increased market share, international customer growth and innovative product development," said Philip N. Kaplan, president and COO at VitalStream. "We anticipate 2005 to be the best year yet as we continue our track record leading the streaming services and content delivery market. Leveraging VitalStream's global network, our customers have the most reliable technology and services to meet their digital media needs." E[acute accent]According to Jupiter Research, rich media is expected to be 39 percent of online advertising spent by 2008. Insight Research predicts that the streaming market will grow from $899 million in 2003 to $16.2 billion in 2008. E[acute accent]VitalStream offers a full range of CDN services, including streaming media services for Flash video and Windows Media.

E[acute accent]About VitalStream, Inc.

E[acute accent]VitalStream, Inc., a wholly-owned subsidiary of VitalStream Holdings, Inc. (OTCBB: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, visit www.vitalstream.com.