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VitalStream Launches Secure Flash Video Streaming Service; New Service Protects Premium Content, with Support for Any Web-Services Verification System.

IRVINE, Calif. -- Businesses can now secure their Macromedia Flash video streams using a variety of Web-service verification systems, ensuring the authorized, reliable delivery of Internet video. VitalStream, Inc. (OTCBB:VSTH), a streaming media solutions and global content delivery provider, today unveiled its new Authenticated Streaming Service, delivered via Flash Video Streaming Service, powered by VitalStream.

The new authenticated streaming service detects authorized users and grants them access to Flash video streams online, including live and on-demand video and audio. This is the first authentication service where customers can use their existing billing system, thereby leveraging investments in billing infrastructure.

The VitalStream Authenticated Streaming Service is compatible with any Web-services authentication system, including .NET and SOAP-based verification systems. This provides enterprises, entertainment companies, online retailers and advertisers more options for delivering and protecting streaming video on their Web sites. By securing Flash video content, including music videos, advertisements and movies, the authentication streaming service enables new revenue models, and helps businesses prevent piracy or unauthorized distribution of content. Whether the streaming videos are paid for or free, companies benefit from using VitalStream's authenticated streaming service to ensure copyright protection, brand management, distribution control and audience restriction.

"VitalStream's Flash Video Authenticated Streaming Service is designed to accommodate large campaigns with multiple verification systems. The flexibility of our service allows companies to leverage existing investments in billing systems and infrastructure," said Philip N. Kaplan, VitalStream president and COO. "With the capacity to provide streaming digital rights management and handle many business systems, we are continuing to execute on our strategy of offering the industry's deepest streaming media product set."

Based on Macromedia Flash Communication Server MX, VitalStream's Authenticated Streaming Service comes standard with the VitalStream MediaConsole MPS (Media Publishing System), which makes it easy for customers to secure and deploy their Flash video over the Internet. Media Console MPS allows content owners to organize and manage both their content and the business rules for access to that content. End-users can be given permission to view videos through VitalStream's integrated MPS Commerce solution, as well as through authentication against a content owner's own system -- from LDAP servers to Web-services-enabled databases.

"A key Macromedia partner, VitalStream continues to offer ground-breaking capabilities for delivering streaming Flash video," said Chris Hock, director of product management, Macromedia. "As Flash video continues its aggressive growth in the media and entertainment, advertising, retail, and enterprise communications markets, our customers are demanding better ways to protect their Flash video streaming content."

About VitalStream, Inc.

VitalStream, Inc., a wholly owned subsidiary of VitalStream Holdings, Inc. (OTCBB: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

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 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.
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Publication:Business Wire
Date:Jun 13, 2005
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