VitalStream Holdings, Inc. Files Registration Statement With the SEC for a Secondary Public Offering

VitalStream Holdings, Inc. (Nasdaq:VSTH) announced today
that it has filed a registration statement with the Securities and
Exchange Commission for a proposed offering of its common stock. Of
the total shares expected to be offered, 5,000,000 are expected to be
sold by the company and 3,950,000 are expected to be sold by selling
stockholders. VitalStream will not receive any proceeds from the sale
of shares by the selling stockholders. In addition, the underwriters
have an option to purchase up to 1,342,500 additional shares from the
company and the selling stockholders to cover overallotments.
   Cowen and Company will act as sole bookrunning manager for the
proposed offering, and Merriman Curhan Ford & Co., ThinkEquity
Partners LLC and Canaccord Adams Inc. will act as co-managers.
   The company plans to use the proceeds of the offering for
additional network build out, international expansion, expansion of
its advertising services sales force and marketing programs, working
capital and general corporate purposes.
   A registration statement relating to the securities intended to be
sold has been filed with the Securities and Exchange Commission but
has not yet become effective. These securities may not be sold nor may
offers to buy be accepted prior to the time the registration statement
becomes effective. This press release shall not constitute an offer to
sell or the solicitation of any offer to buy nor shall there be any
sale of these securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state. When
available, a preliminary prospectus relating to these securities may
be obtained from Cowen and Company at Prospectus Department, 1221
Avenue of the Americas, New York, NY 10020.

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