VitalStream and Multicast Team to Launch Full-Service Webcast Solution

[Planet]

Single source solution simplifies workflow for Webcasting

Irvine, CA & Atlanta, GA - October 11, 2005 - VitalStream (OTC Bulletin Board: VSTH), the leading streaming media solutions provider and international content delivery network (CDN), today introduced a single-source, full-service solution enabling businesses to create Webcasts.

VitalStream's service incorporates Atlanta-based Multicast's state-of-the-art digital media file conversion system and custom interfaces to produce enhanced videos and eliminate programming interruptions. This enables organizations to transmit complex, optimum-quality, multi-camera live Webcasts via fully-managed servers or satellites. The service also offers interactive features including integrated advertising and sponsorship, animation, agenda windows, discussion chat windows and polls. With VitalStream's reliable, secure CDN, businesses can also archive Webcasts in their original form, eliminating the need to reproduce the same presentation on multiple occasions.

"Providing easy-to-use streaming solutions is a key component of VitalStream's overall corporate strategy. Since creating and delivering a Webcast involves the convergence of many technologies, it was an obvious choice for VitalStream to team with Multicast to develop a complete Webcasting solution for our customers," said Jack Waterman, CEO at VitalStream. "VitalStream is one of the only companies with the knowledge, experience and delivery platform to bring these diverse elements together into a full-service solution."

"While we are considered to be specialists in the managed delivery of live Internet broadcasts – serving over 1,100 live events in September alone – it is absolutely imperative that we offer access to a reliable streaming network. This ensures our clients worldwide have the best broadcast-quality viewing experience," said Jason Simpson, executive vice president of business development at Multicast. "VitalStream, with its proven security track-record and advanced features offerings, was an obvious choice in our search for a world-class content delivery network."

VitalStream recently authored a white paper, outlining the top tips on preparing for and delivering corporate Webcasts. The paper, Hands-On: How to Deliver a Successful Webcast, discusses the key technologies provided by partners such as Multicast, and can be found online at http://www.vitalstream.com/.

About Multicast

Multicast is recognized as a leader in the delivery of custom broadband video services and solutions. The company has proprietary technology that enables the digital distribution of content and offers a variety of products and a suite of broadcast solutions for the Internet, including video-on-demand, branded Internet broadcast channels, live webcasting, and satellite downlink services. With 50 employees, Multicast serves over 300 organizations including Time Warner, The Home Depot, Quilters' News Network, The Dan Marino Foundation, AON Corporation, BuyCostumes TV, WebMD, Cystic Fibrosis Foundation, Better Homes & Gardens, and The Knot. For more information, please visit Multicast online at http://www.multicastmedia.com/.

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, perform as anticipated or be available longer-term due to arrangements that may be terminable under certain circumstances, VitalStream's network security and performance may be adversely affected by both internal and external causes, 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.