VSTH Vitalstream Hldgs (MM)

VitalStream, Inc. (Nasdaq:VSTH), the world leader in audio and video streaming, today announced it was named a "Strong Performer" in the Forrester Wave(TM) report, "Rich Media Content Delivery, Q2 2006" published June 9, 2006.(a) The report assesses the market for rich media content, and evaluates six leading Content Delivery Network (CDN) vendors across 70 criteria. VitalStream was among the select companies Forrester invited to participate based on number and stature of media clients and differentiation of service offerings. According to the report, "VitalStream's six-year history of focusing on media companies and its experience with more than 300 media clients -- including MySpace, SpikeTV and the Sundance Film Festival -- show when using its reporting and delivery management tools."(b) It continues, "Additionally, VitalStream's extensive experience with Flash streaming makes it one of the best choices for companies that are looking to deliver their content in this fast-growing format." "The latest Forrester Wave summary focuses on the increasing demand for consumer content, highlighting the need for rich-media streaming and content delivery technology," said Philip N. Kaplan, President and COO. "We are pleased that Forrester has recognized the high level of customization within VitalStream's content management tools and the value of our long-standing Flash video offering. We are dedicated to providing the most secure, reliable content delivery to audiences worldwide, while enabling audio and video providers to monetize content via fully integrated advertising and subscription solutions." VitalStream's core product suite consists of VitalStream Streaming Service for Flash(TM), VitalStream Streaming Service for Windows Media(TM) and VitalStream Content Delivery Service(TM). VitalStream's customer base includes many of the largest, fastest-growing content providers. New customers added during Q4, 2005 include WalMart, Johnson & Johnson, Viacom's Spike TV, ING, Time, Inc. and Deloitte Worldwide, which join existing customers like Comcast, Edmunds.com and CNET. Forrester Research (Nasdaq:FORR) is an independent technology and market research company that provides pragmatic and forward-thinking advice about technology's impact on business and consumers. For the full Forrester Wave(TM) report, "Rich Media Content Delivery, Q2 2006," please visit www.forrester.com. The Forrester Wave is copyrighted by Forrester Research Inc. Forrester and Forrester Wave are trademarks of Forrester Research Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings and comments. Forrester does not endorse any vendor, product or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. About VitalStream 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 www.vitalstream.com. 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. The following factors, among others, could cause actual results to differ materially from those described in any forward-looking statements: the risk of a slower than projected growth in the demand for digital broadcast and streaming services; the risks that our existing customers may cease to use or reduce our services and/or may not use our services at the projected rate; uncertainties regarding the future demand for our products and services generally despite our recent infrastructure investments, expansion into other markets, product enhancements and expansion of our sales force; our new product offerings are evolving and may not predictably be accepted by the intended market of customers, advertisers and end-users; 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; 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. VitalStream is a registered trademarks of, and VitalStream Streaming Service for Flash(TM), VitalStream Streaming Service for Windows Media(TM) and VitalStream Content Delivery Service(TM) are trademarks of, VitalStream, Inc. All other names or marks are the property of their respective owners. (a) The Forrester Wave: Rich Media Content Delivery, Q2 2006, Forrester Research Inc., June 9, 2006 (b) VitalStream Excels In Streaming Services For Rich Media Content Delivery, The Forrester Wave Vendor Summary, Q2 2006, Forrester Research Inc., June 9, 2006.