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Wednesday, 01/25/2006 11:52:11 PM

Wednesday, January 25, 2006 11:52:11 PM

Post# of 17
ONT/VSTH alliance originally announced in September.

On2 Technologies and VitalStream(R) Team to Create End-to-End Flash Video Delivery Solution
Single source solution simplifies workflow for Flash video delivery
9/26/2005 8:30:28 AM

NEW YORK and IRVINE, Calif., Sept 26, 2005 /PRNewswire-FirstCall via COMTEX/ -- On2 Technologies, Inc. (ONT), and VitalStream (VSTH), a streaming media solutions provider and international content delivery network, today announced that they have partnered to create a single-source solution combining powerful, high quality Macromedia(R) Flash Video(TM) encoding tools from On2 with VitalStream's global streaming and content delivery services for digital media enterprises.

As a result of this partnership, digital media enterprise customers - for the first time -- will be able to experience Flash Video through a high quality codec available in Macromedia Flash(R) Player 8, integrated with global streaming media and delivery solutions. The partnership enables the creation and delivery of pristine quality digital media content in what is quickly emerging as the fastest adopted format for streaming over IP - Macromedia Flash Video.

"Combining the ubiquity of Flash Player with the Flash Media Server 2 software makes the Flash Platform a superior way to deliver seamless, instant- on web video experiences to millions of viewers worldwide," said Chris Hock, director of product management, Macromedia. "With today's On2 and VitalStream announcement, we're seeing the Flash Platform fuel valuable new partnerships for Flash Video creation and delivery services for global media enterprises."

"On2 has made significant strides in accelerating the adoption of what we believe is the digital media industry's most viable and compelling IP video format, Flash Video. To date, we've succeeded in providing the worldwide community of Flash developers with a high quality codec available in Macromedia Flash Player 8. With the VitalStream partnership, we are raising the stakes by offering a complete, end-to-end Flash Video creation and delivery service for the world's largest purveyors of digital media content," said Doug McIntyre, chairman, president and chief executive officer of On2 Technologies.

"VitalStream serves as the delivery vehicle for some of the world's largest digital media enterprises," added Jack Waterman, chief executive officer of VitalStream. "Partnering with On2 enables us to provide another first to these global enterprises. We're offering an unparalleled workflow that combines high quality content creation with our vast digital media delivery capabilities."

As part of the agreement, On2 and VitalStream have entered into a combined reseller and OEM arrangement in which VitalStream will actively market and sell On2's Flix family of Flash 8 video authoring solutions. Additionally, On2 will actively market and sell VitalStream's Flash 8 video streaming services to On2's Flix customer base.

About VitalStream, Inc.

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

About On2 Technologies, Inc., The Duck Corporation

On2 Technologies (ONT) is a leading technology firm at the forefront of video compression. The company revolutionized digital media delivery with the creation of its advanced full-motion, full-screen, On2 Video compression and streaming technologies. On2 Video codecs are used extensively in the video-on-demand, videoconferencing, Internet media, surveillance, and store- and-play markets. They operate with On2's own TrueCast Server and Player software, as well as third-party player and server products. On2's software is used by such leading companies as Sony, XM Satellite Radio, NTT, AOL, BBC, ABC News, Nullsoft, SeaChange International, and Macromedia. The On2 Video decoder has an installation base of millions through its inclusion in AOL 9 Media Player, Winamp 5, Viewpoint Media Player, and others. On2 licenses its software for use in set-top boxes, consumer electronics devices and wireless applications and offers high-level video encoding, customized technical support, and consulting/integration services. Located in New York City, the company has an office in Clifton Park, NY, and operations in Cambridge, UK. To contact On2 write to or visit

Forward-Looking Statements

This news release contains forward-looking statements of VitalStream Holdings, Inc. 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 for VitalStream may differ materially from those indicated by these statements as a result of various important factors including, but not limited to, the possibility that new product offerings based upon, incorporating or used in combination with its partners' proprietary technology may not predictably be accepted by its customers, perform as anticipated or be available longer-term due to arrangements that may be terminable under certain circumstances, 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 names and marks are the property of their respective holders. VitalStream, Inc. and On2 are independent contractors of one another only, and despite the use of such terms as "partnered, partnering and partnership" in this release, none of the parties mentioned in this release are involved in a joint venture or a legal partnership with one another.

SOURCE On2 Technologies, Inc.

Kevin M. Bourke of BourkePR, +1-781-545-7449, or; or Aida
Causevic, or Katie Eakins, both of LEWIS PR for VitalStream, +1-619-516-2559, or

Copyright (C) 2005 PR Newswire. All rights reserved.

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