VitalStream to Power Web Site for Toyota Hybrid Community

Business Wire, Feb 5, 2007

Saatchi & Saatchi LA Selects VitalStream's Flash Video Streaming for Interactive Online Toyota Hybrid Synergy Drive (HSD) "Reasons" Campaign

COSTA MESA, Calif. -- VitalStream Holdings, Inc. (NASDAQ:VSTH), a leader in rich media content delivery and monetization, has been selected by the West Coast office of global advertising firm Saatchi & Saatchi to power Flash video streaming for a new online community (http://www.toyota.com/hybrids), designed to facilitate interaction among Toyota hybrid drivers and promote the benefits of Toyota's Hybrid Synergy Drive (HSD) technology.

VitalStream's Streaming Service for Flash[TM] delivers high-quality video content illustrating various reasons Toyota owners drive Toyota Hybrid Synergy Drive vehicles, including the Prius, Highlander Hybrid SUV and the Camry Hybrid, the first Toyota hybrid car to be assembled in the US. The site invites drivers to share their preferences for getting behind the wheel of a hybrid car. Those reasons include cost-savings, environmental responsibility, futuristic design and advanced technologies such as 'regenerative braking,' which captures energy from braking to recharge a hybrid's batteries.

"VitalStream's Flash technology and expertise in content delivery makes it the perfect video streaming provider for user-generated sites," said Peter Kang, Interactive Creative Director for Saatchi & Saatchi LA. "VitalStream's content delivery network allows us to focus on other portions of the Toyota campaign. We've created a virtual community in which Toyota hybrid fans and others curious about hybrid technology can congregate, leaving the Web site's service and monitoring in the capable and reliable hands of VitalStream."

VitalStream's proprietary solution for Flash includes MediaConsole[R], a workflow management toolset that integrates with all media streaming formats and includes pre-built skins and a real-time reporting dashboard. VitalStream provides the MediaOps[TM] software development kit to assist customers like Saatchi & Saatchi LA with their Flash application development. MediaOps, a library of Flash software and Flash-developed objects, enable developers to quickly and easily implement their Flash projects.

With VitalStream's Streaming Service for Flash, Toyota's Web site visitors can easily upload personal photos and video clips of their experiences with their vehicles. VitalStream's proprietary transcoding framework, configured to Toyota's specific requirements, enables Web surfers to submit videos in most formats, including Windows Media, Quicktime, MPEG, DV and 3GP. VitalStream converts the video clips to Flash 8 and streams them on Toyota's site, ensuring that all online content is of high-quality and deployed easily.

"Saatchi & Saatchi LA is a world leader in innovation, known for creating ad campaigns with impressive creativity and cutting-edge techniques," said Philip N. Kaplan, President and COO at VitalStream. "This choice further validates that VitalStream is the premier content delivery network for delivering rich media for user-generated sites. The scalability of our technology and expertise in Flash video streaming helps achieve the goals of both Saatchi & Saatchi LA and Toyota and enables drivers to express their individuality and support for hybrid technology."

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 Holdings, Inc., through its wholly owned subsidiaries that include VitalStream, 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.

About Saatchi & Saatchi LA

Saatchi & Saatchi LA's dream is to positively influence U.S. popular culture. Since its founding in 1975, the West Coast office of Saatchi & Saatchi has been creating world-famous creative ideas on behalf of its clients. The agency recently made history with its campaign to launch the Toyota Yaris, which included the first ever ad-sponsored "mobisodes" of Fox's "Prison Break." The agency picked up two Bronze Lions at Cannes 2006, including one for Toyota Tacoma "Tide," the only U.S. automotive spot to medal at the festival. Saatchi & Saatchi LA is the agency of record for Toyota Motor Sales, U.S.A., and it also serves Toyota Dealer Associations and Procter & Gamble.

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 sources; 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 that could contribute to such differences or otherwise affect our business, results of operations and financial condition 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. The forward-looking statements in this release 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.