VSTH Vitalstream Hldgs (MM)

VitalStream Holdings, Inc. (Nasdaq:VSTH), a world leader in audio and video streaming, today announced that the Nasdaq Stock Market ("NASDAQ") has approved its application for upgrading its listing to the NASDAQ Global Market, formerly known as the NASDAQ National Market. VitalStream expects to commence trading on the NASDAQ Global Market on Wednesday, August 30, 2006 under its current symbol, "VSTH." VitalStream has been trading on the NASDAQ Capital Market under the same symbol since its listing last June. "Meeting the more stringent requirements for a NASDAQ Global Market listing is another important milestone for VitalStream that underscores the tremendous growth we have experienced and is another strategic goal our Board and senior management targeted to position the company to continuously maximize shareholder value," stated Jack Waterman, chairman and chief executive officer of VitalStream. "Nine months ago, we were a bulletin board stock with no analyst coverage, and today we begin trading on the NASDAQ Global Market with six investment banks providing coverage on VitalStream. We remain extremely excited about our market position and the growth prospects ahead which we are confident will generate additional exposure for the company, allowing VitalStream to benefit from the potential for increased liquidity and trading efficiency that the NASDAQ Global Market offers." About NASDAQ Global Market The NASDAQ Global Market consists of over 1,450 companies that have applied for listing, having met and continued to meet stringent financial and liquidity requirements and agreed to meet specific corporate governance standards. Formerly called The NASDAQ National Market, this market was renamed in 2006 to reflect the global leadership and international reach of this market and the companies whose securities are listed here. For more information on the requirements to be included on The NASDAQ Global Market, please see Listing Standards & Fees at http://www.nasdaq.com/about/nasdaq_listing_req_fees.pdf About VitalStream, Inc. 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 in reliance upon the safe harbor provision of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ materially from those indicated by these statements. Forward-looking statements may include statements addressing future financial and operational results of the company. Despite the listing of its shares of common stock on the Nasdaq Global Market, the company may not experience increased liquidity or efficiency in its stock trading, or benefit from additional exposure, due to the following factors, among others, that could cause actual results to differ materially from those described in any forward-looking statements: the potential for flat or declining trading volume and price because of negative macroeconomic factors, a declining interest in our market segment generally or a declining interest in our company specifically; uncertainties regarding the future demand for our products and services generally despite our recent investments; 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; we may become subject to risks associated with international operations; we may be unable to keep up with evolving industry standards and changing user needs; the risk that acquired businesses or assets may be difficult to integrate or may not have the benefits anticipated; 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 most recently filed 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 property of their respective holders.