VSTH Vitalstream Hldgs (MM)

Internap Network Services Corporation (NASDAQ: INAP) and VitalStream Holdings, Inc. (NASDAQ: VSTH) today announced that the registration statement on Form�S-4 containing the joint proxy statement/prospectus related to the proposed merger between Internap and VitalStream was declared effective on January 10, 2007. The companies have commenced the mailing of the joint proxy statement/prospectus to stockholders. Internap and VitalStream stockholders are urged to read the joint proxy statement/prospectus, which contains important information regarding the proposed merger. The special meeting for Internap stockholders will be held at 3:00 p.m. ET on February 20, 2007, at 250 Williams Street, Atlanta, Georgia, 30303. The special meeting for VitalStream stockholders will be held at 12:00 p.m. PT on February 20, 2007, at 555 Anton Blvd., Suite 400, Costa Mesa, California, 92626. The record date for each company�s special meeting of stockholders is the close of business on December 29, 2006. The companies anticipate that the transaction will close as soon as practicable after the date of the stockholder meetings, subject to approvals by Internap and VitalStream stockholders and the satisfaction of other closing conditions. Additional Information Regarding the Transaction The announcement of the transaction is neither a solicitation of a proxy, an offer to purchase nor a solicitation of an offer to sell shares of the Company�s common stock. Internap and VitalStream have filed with the Securities and Exchange Commission (�SEC�) a Joint Proxy Statement/Prospectus on Form S-4. In addition, other relevant materials in connection with the proposed transaction will be filed with the SEC. INVESTORS IN INTERNAP AND VITALSTREAM ARE URGED TO READ CAREFULLY THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT MATERIAL WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT INTERNAP, VITALSTREAM AND THE TRANSACTION. Any offer of securities will only be made pursuant to the Joint Proxy Statement/Prospectus. The documents will be available without charge on the SEC�s web site at www.sec.gov. A free copy of the final Joint Proxy Statement/Prospectus may also be obtained from Internap and VitalStream through their Investor Relations contacts provided below. The officers and directors of VitalStream may have interests in the proposed acquisition, some of which may differ from, or may be in addition to, those of the stockholders of VitalStream generally. A description of the interests that the officers and directors of the companies have in the proposed transaction will be available in the Joint Proxy Statement/Prospectus. In addition, Internap and VitalStream, their respective officers, directors and certain of their management and employees may be deemed to be participants in the solicitation of proxies from the stockholders of Internap and VitalStream in favor of the acquisition. Information about the officers and directors of Internap is set forth in the proxy statement for Internap�s 2006 Annual Meeting of Stockholders filed with the SEC on April 26, 2006. Information about the officers and directors of VitalStream is set forth in the proxy statement for VitalStream�s 2006 Annual Meeting of Stockholders filed with the SEC on June 20, 2006. Information about the ownership of Internap and VitalStream securities by each company�s respective officers and directors is set forth in the Joint Proxy Statement/Prospectus on Form S-4 filed with the SEC on January 9, 2007. Investors may obtain more detailed information concerning the participants by reading the Joint Proxy Statement/Prospectus when it is filed with the SEC. Internap �Safe Harbor� Statement Certain information included in this press release constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, including, among others, statements regarding the closing of the transaction with VitalStream, are forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that actual results may differ materially from those contemplated by forward-looking statements. The transaction and the achievement of any anticipated benefits from the transaction are subject to significant risks and uncertainties. Many important factors that may affect Internap�s and the combined company�s business, results of operations and financial condition include, but are not limited to, our ability to sustain profitability; the ability to successfully integrate the operations of Internap and VitalStream; our ability to compete against existing and future competitors; pricing pressures; our ability to respond successfully to the evolution of the high performance Internet connectivity and services industry; our ability to respond successfully to technological change; our ability to deploy new access points in a cost-efficient manner; the availability of services from Internet network service providers or network service providers providing network access loops and local loops on favorable terms or at all; failure of third party suppliers to deliver their products and services on favorable terms or at all; failures in our network operations centers, network access points or computer systems; fluctuations in our operating results; our ability to secure adequate funding; the incurrence of additional restructuring charges; our ability to operate in light of restrictions in our credit facility, including our ability to maintain ratios set forth in the credit facility; our ability to attract and retain qualified personnel; our ability to protect ourselves and our customers from security breaches; our ability to protect our intellectual property; our ability to successfully complete future acquisitions; risks associated with international operations; claims relating to intellectual property rights; government regulation of the Internet; the dilutive effects of our stock price due to outstanding stock options and warrants; future sales of stock; effects of natural disasters or terrorist activity; and volatility of our stock price. Our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K and other Securities and Exchange Commission filings discuss the foregoing risks as well as other important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition. The forward-looking statements in this release speak only as of the date they are made. We undertake no obligation to revise or update publicly any forward-looking statement for any reason. About Internap Internap is a market leader of intelligent route control solutions that bring reliability, performance and security to the Internet. The company�s patented and patent-pending technologies address the inherent weaknesses of the Internet, enabling enterprises to take full advantage of the benefits of deploying business-critical applications such as e-commerce, VoIP, and audio/video across IP networks. Internap currently serves more than 2,200 customers throughout North America, Europe, Asia and Australia. For more information, please visit the company web site at www.internap.com. Internap is a trademark of Internap Network Services. All other trademarks and brands are the property of their respective owners. VitalStream 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. All statements, other than statements of historical facts, including statements regarding the closing of the transaction, are forward looking statements. The following factors, among others, could cause actual results to differ materially from those described in any forward-looking statements: the risk that the transaction may not be consummated for various reasons, including failure to obtain shareholder approval, failure of one or more parties to satisfy all conditions to closing or breach of the merger agreement by one or more parties. 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 Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed since the filing of the Form 10-K by VitalStream Holdings, Inc. with the SEC. Such forward-looking statements speak only as of the date of this release. VitalStream 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. About VitalStream VitalStream Holdings, Inc., through its wholly owned subsidiaries, 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.