VitalStream and Sorenson Media Team to Offer One Click Workflow for Integrated Video Compression and Distribution; Sorenson Squeeze Encoding Technology Now Available to VitalStream Customers

Business Wire, July 5, 2005

IRVINE, Calif. & SALT LAKE CITY -- VitalStream, Inc. (OTCBB:VSTH), a streaming media solutions and global content delivery provider, and Sorenson Media, the leader in video compression technology, today announced that Sorenson Squeeze(R) 4.1 encoding software will be integrated into VitalStream's Streaming Service for Flash. VitalStream is the first content delivery network (CDN) provider to integrate the Sorenson Squeeze compression technology into its suite of services.

VitalStream's partnership with Sorenson Media leverages VitalStream's reliable, worldwide CDN built for streaming and Sorenson Squeeze's encoding technology to give customers the capability to quickly and easily publish their digital video files to VitalStream's network, improving traditional media workflow. VitalStream's service provides customers with an efficient option for storing and delivering their digital media of any size.

"Businesses seeking to publish their digital content online have been forced to use two independent sources until now," said Jack Waterman, CEO of VitalStream. "By integrating Sorenson Squeeze software with VitalStream's delivery services, digital media publishers, for the first time, can compress and deliver their video using a single source. VitalStream's complete toolset makes the entire publishing process more efficient and affordable for small businesses and enterprises."

Sorenson Squeeze 4.1 is an entire product line of applications specializing in compressing digital video for archiving and sharing video over the Internet and on CD and DVD. As part of the authoring and publication process, customers import edited, uncompressed video from popular video editing tools, select a preset for an intended audience and then click the "Squeeze It" button. Sorenson Squeeze then compresses the video file, preparing it for distribution and archiving. Now, with VitalStream integration, customers have the choice of automatically uploading the compressed stream via FTP to VitalStream's delivery services.

"Sorenson Media has long focused on simplifying the workflow for digital content creation. Joining the award-winning workflow of Squeeze with VitalStream's leading CDN services was a natural fit for both companies," said Matt Cupal, president and COO of Sorenson Media. "From the Fortune 500 to the single-person shops, both Sorenson Media and VitalStream customers will have greater ease in getting their content into the hands of viewers."

Available immediately, Sorenson Squeeze 4.1 encoding software is integrated in VitalStream Streaming Service for Flash. For more information, please visit www.vitalstream.com.

About Sorenson Media

Sorenson Media is the global leader in video compression technology. The company's innovative encoding applications and award-winning video delivery solutions enable users to quickly and affordably deliver quality digital video files over the Internet. Sorenson Media's video streaming technology is used on more than 600 million PCs worldwide. The Sorenson Squeeze Compression Suite has garnered many major industry awards, including Macworld Best of Show and Video Systems 2004 Vanguard Award, and the firm's compression codecs are licensed by a host of Fortune 500 companies.

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 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.

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, the possibility that VitalStream's new product offerings based upon or incorporating its partners' proprietary technology may not predictably be accepted by its customers, 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.