VitalStream Finds Support for Growing Trend in Viewing Major News Events Online

Business Wire, Nov 7, 2005

IRVINE, Calif. -- VitalStream Holdings, Inc. (OTCBB:VSTH), the world leader in video streaming solutions, today announced the results of an online survey in which 71% of respondents reported viewing major news events online via video streaming.

The online poll conducted by VitalStream, for which there were approximately 500 responses, suggests that more people are turning to video streaming online to access breaking news than ever before. Advances in video streaming and easy access to broadband Internet provide people with the opportunity to view major news events and online broadcasts in an instant, making the Web a popular alternative to television.

According to Paul A. Palumbo, research director at AccuStream iMedia Research, three billion news and information streams were delivered in 2004 (71% at broadband bit rates). News and information is forecast to grow 20% to over 3.5 billion streams in 2005, accounting for a 20% viewing share of the entire entertainment and media market online.

"VitalStream experiences huge increases in bandwidth demand during major events like the landfall of Hurricanes Katrina and Rita, with traffic more than triple that of normal daily levels," said Jack Waterman, CEO of VitalStream. "Since the online video streaming audience is growing, it is important for news sites to offer live feeds to compete for the attention of this group. We believe when given the choice, most people would prefer to use a computer rather than wait until they have access to television. We know how important it is to be informed, and VitalStream provides its news media customers like ABCNews, CNET and the Wall Street Journal with reliable, secure and rich video streaming for their end users worldwide."

VitalStream provides VitalStream Streaming Service for Flash and VitalStream Streaming Service for Windows Media to a broad customer base, including Fortune 500 corporations, movie studios, news broadcasters, music and radio companies, advertising agencies and educational institutions.

The company will showcase its latest products at Streaming Media West at the San Jose McEnery Convention Center, San Jose, Calif., November 15-17. For more information, please visit VitalStream at booth #601 or visit www.vitalstream.com.

About VitalStream, Inc.

VitalStream, Inc., a wholly owned subsidiary of VitalStream Holdings, Inc. (OTCBB:VSTH), is an international provider of integrated content delivery services that enable businesses to broadcast digital media and communications to worldwide audiences via the Internet. Leading in market innovation, VitalStream 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 risk that the company's revenues may not grow commensurate with projected growth in demand for online news and information streaming; uncertainties regarding the future demand for the company's products and services generally despite peak periods of demand during major news events; the risk that the current trends toward increasing broadband penetration or in consumer preferences may not continue, 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.

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