VitalStream

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The World Leader in Audio and Video Streaming November 2005

Safe Harbor: 

Safe Harbor Any statements regarding our future financial results or the growth of our company or our industry, and all other forward-looking statements included in or related to this presentation, are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These statements reflect the Company’s current beliefs and estimates, and a number of factors could cause actual results for future periods to differ materially from those anticipated by our presentation. Information concerning factors that could cause actual results for future periods to differ from anticipated results can be found in our most recent annual and quarterly reports filed with the SEC. This presentation is current only as of September 2005. VitalStream undertakes no obligation to update or revise any information herein to reflect changes in circumstances.

VitalStream is the Strong Number Two CDN: 

VitalStream is the Strong Number Two CDN In a recent study, “Costs of CDN and Streaming Services” by StreamingMedia.com, VitalStream was perceived as the number two CDN vendor in the marketplace.

Process: How We Stream Customer Media and Content: 

Process: How We Stream Customer Media and Content Audio and Video Media Audio and video content is broadcast live or on demand and sent to VitalStream for encoding Encoding VitalStream converts media from nearly any source format into leading streaming media formats Content Control Services VitalStream’s service provides the “glue” to coordinate all aspects of digital broadcasting Content Delivery Network Reliably deliver streaming media to large global audiences using an award-winning network Streaming Media Delivered Payment and demographic information is collected and media is broadcast to various devices around the globe

Industry and Opportunity: 

Industry and Opportunity The rapid rate of broadband penetration, both in the U.S. and worldwide, is fueling demand for more content and advertising Time spent online consuming media has grown from 16 percent in 2004 to 20 percent in 2005 (Goldman Sachs, Internet Usage Study) Video streams served rose by 80.7 percent in 2004 to 14.2 billion served They are forecasted to grow 48 percent in 2005 to over 21 billion served and 33 percent to over 28 billion served in 2006 The average number of streams served by the top 10 web sites grew 187 percent in 2003 and 80.7 percent in 2004 (Accustream iMedia Research)

Industry and Opportunity: 

Industry and Opportunity Goldman Sachs predicts 2005 will be the “breakout year” for online advertising, and the market will increase by 28 percent to reach $12.3B Their 2005 Internet study also predicts online advertising could account for as much as 7 percent of total ad spending by 2009, up from 4 percent in 2004 Rich and Streaming Media spending will grow over 300 percent from $1 billion in 2004 to $4.5 billion in 2010 (Jupiter Research) Streaming media among advertisers will grow at a 30 percent CAGR to $943M by 2010 (Jupiter Research) Rich media is defined as advertisements that integrate some component of streaming video and/or audio and interactivity.

VitalStream Products and Solutions: 

VitalStream Products and Solutions Massively Scalable Global 10 Gigabit Internet Peering Fully Redundant Architecture International Presence Multiple Petabyte Storage Content Delivery Network Subscription Services Digital Rights Management (DRM) Advanced Business Intelligence Advertising Solutions Solutions Podcasting Professional Services Managed Services IPTV Windows Media Content Delivery Service PlayStream/ SOHO Flash Video Products

Content Control Services: MediaConsole® Technology: 

Content Control Services: MediaConsole® Technology Content Management - Differentiating technology allows customers to easily upload, code, change and manage their content Content Monetization - DRM, e-commerce, Pay-Per-View, VOD, live events and subscription models delivered by proprietary software and tools as well as industry partnerships Advanced Business Intelligence – Best in class tools allow customers to view network conditions, viewer statistics and demographics Dashboard - Features near real-time reports on traffic by geography, Keynote Streaming Perspective StreamQ ratings, concurrent viewers and more

Solutions: Advertising Solutions: 

Solutions: Advertising Solutions Publisher Benefits (e.g., Comcast) Customizable Flash player interface Simplified complex technology Tracking and reporting integration Industry preferred billing method (CPM model) Ad Agency Benefits (e.g., Red Agency) Create one ad, play it anywhere online Complete creative freedom Media Buyer Benefits Maximum exposure of ad content Ability to integrate with all major ad serving and third party tracking solutions Real time ad performance reporting VitalStream provides the publisher, ad agency and media buyer with an efficient framework to monetize their editorial video content with in-stream advertising.

Comcast Case Study: Media/Entertainment : 

Comcast Case Study: Media/Entertainment Challenge Comcast needed a highly interactive portal to serve up news and entertainment content to their paid subscribers. Solution VitalStream was the first industry expert in Flash development, the ideal solution. Comcast chose VitalStream for the depth of its Flash product offering and expertise. Result Comcast has an industry leading portal that serves news and entertainment to more than 8 million subscribers.

Disney Case Study: Media/Entertainment: 

Disney Case Study: Media/Entertainment Challenge Disney had a limited in-house IT team and lacked the technical expertise to allow them to easily integrate an interactive media experience into their websites. Solution VitalStream created a seamless digital workflow solution. Result Online feature film marketing and advertising contributes to box office and merchandise sales for Disney.

Salesforce.com Case Study: Corporate Communications : 

Salesforce.com Case Study: Corporate Communications Challenge Salesforce.com needed an easy way to communicate their complex product offering to prospective customers. Solution VitalStream Professional Services worked with SalesForce.com to develop a customized, highly interactive demo center for their site. Result Highly interactive website with a demo center including video controls and chapters that contribute to bottom line sales.