VitalStream Showcases Carmel-by-the-Sea with Flash Video Streaming

Business Wire, Nov 13, 2006

Ad Agency Anda-Burghardt Enlists Streaming Media Technology to Boost California City's Tourism

COSTA MESA, Calif. -- Anda-Burghardt, a branding and interactive advertising agency, has selected VitalStream, a leader in online content delivery and monetization, as its provider of Flash video streaming to power an interactive advertising campaign to promote Carmel-by-the-Sea, California.

Using VitalStream's Streaming Service for Flash[TM], Anda-Burghardt has created seven videos showing the history of Carmel to Web visitors looking to plan romantic getaways by the beach. A customized video player created by VitalStream's Professional Services Organization, a group of technology specialists, enables Anda-Burghardt to extend its resources for the campaign. The ad agency has access to manageable, XML-format playlists that can be updated for future videos and integrated with content it has created.

Anda-Burghardt's own search engine optimization (SEO) technology directs Web surfers in search of weekend vacations to the city's Web site, where they'll find video of California's 'Jewel City' highlighting its beauty, charm and top attractions. The site advertises Carmel as an ideal getaway for destination weddings and retreats. The videos are available at http://www.carmelcalifornia.com.

"VitalStream's Flash video expertise and ability to distribute content globally with speed and reliability makes it the perfect video streaming provider to help us inject energy and innovation into our campaigns," said Jeff Burghardt, Anda-Burghardt's president. "We were also persuaded by VitalStream's responsiveness. The company's customer care is a reflection of the quality-of-service we aim to offer our clients. We're happy to have found a solution we can trust, and hope our other customers will adopt Flash video, too."

VitalStream leads the market as the first Adobe partner to power streaming services for Flash. Its proprietary solution includes MediaConsole[R], a workflow management toolset, which integrates with all streaming formats and includes a media manager, pre-built video skins and a real-time reporting dashboard. To accelerate its customers' Flash application development, VitalStream provides the MediaOps[TM] software development kit - a library of Flash software and Flash-developed objects that enable developers to quickly and easily implement their Flash projects.

"Anda-Burghardt's customer base, including vacation resorts and wineries, can benefit greatly by offering Flash video to an ever-growing Internet audience," said Michel Maeso, EVP of sales and marketing at VitalStream. "As a pioneer of the original Flash video platform, VitalStream is a preferred choice among content providers and advertisers looking to offer rich-media delivery. Our solutions help Anda-Burghardt meet the business objectives of its clients by attracting and influencing online audiences across the globe."

VitalStream's customer base includes Fortune 500 corporations, movie studios, news broadcasters, music companies and advertising agencies, including ABC Radio, CNET, Disney and the United Nations. For more information, please visit www.vitalstream.com.

About VitalStream, Inc.

VitalStream, Inc., a wholly owned subsidiary of VitalStream Holdings, Inc., is a global provider of integrated content delivery services that enable businesses to stream digital media to large audiences over the Internet. The company provides solutions, including video and audio streaming, advertising placement, reporting and analysis, live event broadcasting, media asset management, integrated Web hosting and consulting services.

Forward-Looking Statements

This news release contains forward-looking statements made by VitalStream 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. Forward-looking statements may include statements addressing future financial and operational results of the company. The following factors, among others, could cause actual results to differ materially from those described in any forward-looking statements: we may be unable to keep up with evolving industry standards and changing user needs; we are substantially dependent upon technology and services provided by third parties, we do not have long-term agreements governing the supply or license of many of these services or technologies, and most are available from only limited source; the risk that we may experience technical or security problems that injure our business or increase our operating costs; and/or uncertainties regarding our ability to pursue our proposed business strategy. More detailed information about these factors and others 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.