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Prodigy MSN Selects VitalStream to Deliver Video to Latin America's Online Community.

Gathers Valuable Data with VitalStream's Unique Reporting Tools to Best Serve Its Global Audience

COSTA MESA, Calif. -- VitalStream, Inc. (NASDAQ:VSTH), a leader in online content delivery and monetization, announced it has signed a contract to provide streaming media services to Prodigy MSN, a joint venture between Microsoft Mexico and Telmex.

Selected especially for the proven scalability of its high-bandwidth media delivery network and comprehensive reporting tools, VitalStream enables fast downloads of Prodigy MSN's ( online, Spanish-language video and news content.

Prodigy MSN is Latin America's leading provider of email (Prodigy/MSN Hotmail), instant messaging (Windows Live Messenger en Prodigy/MSN) and blogging services (Windows Live Spaces en Prodigy/MSN).

VitalStream's MediaConsole[R], its workflow management toolset, integrates with all streaming formats. A 'media manager' feature offers real-time reporting tools that enable the service provider to track and analyze data on its videos, including precisely which users are accessing content and the duration of their viewing sessions. This data illustrates where an audience is concentrated and provides insight into visitors' viewing habits to give Prodigy MSN better intelligence on how to best deliver and monetize the audio and video it delivers.

To accelerate Prodigy MSN's application development, VitalStream will provide its library of streaming software and tools, empowering the site's developers to quickly and easily implement their online media streaming projects.

"With our user-base growing aggressively, we see online video as the best way to attract visitors and keep them on our Web pages," said Miguel Alegre, Prodigy MSN's editor-in-chief. "VitalStream has a proven track record in providing excellent customer care. The company impressed us with its reliable, secure streaming services, enabling Prodigy/MSN to deliver and monetize rich, attractive, interesting media content to the 20 million Internet users in Mexico."

"As a leading service provider, Prodigy MSN is the ideal candidate for high-quality content delivery and we're thrilled to be selected as its streaming media provider," said Jack Waterman, VitalStream's CEO. "Over 90 percent of Prodigy MSN's audience is outside of the United States, which is testament to the fact that VitalStream is a top-choice content delivery network for organizations looking to successfully serve global audiences with online, on-demand content."

About VitalStream, Inc.

VitalStream, Inc., a wholly owned subsidiary of VitalStream Holdings, Inc. (Nasdaq: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 video and audio streaming, advertising placement, delivery, reporting and analysis, 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

Forward-Looking Statements

This news release contains forward-looking statements made in reliance upon the safe harbor provision 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; the risk that we may experience technical or security problems that injure our business or increase our operating costs; we may become subject to risks associated with international operations; 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 most recently filed 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 and MediaConsole are registered trademarks of wholly owned subsidiaries of VitalStream Holdings, Inc. All other names and marks are property of their respective holders.
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Nov 7, 2006
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