VitalStream Powers First Online Video Site and Social Network for High School Athletes

Provides online Flash video to help students showcase talents to recruiters worldwide

Irvine, CA - September 18, 2006 - VitalStream, Inc. (Nasdaq: VSTH), a world leader in audio and video streaming, has been selected by MySTACK, the first online video site and social network created exclusively for high school athletes, to provide its Flash video streaming service enabling them to demonstrate skills and interact with peers and recruiters worldwide.

MySTACK, a complement to STACK Magazine, the nation's leading publication for high school athletes, was created specifically to help teen athletes show off their skills. MySTACK expects to evolve into the nation's premier destination for high school sports video.

With VitalStream's Streaming Service for Flash, MySTACK users can easily upload personal video profiles and clips of their best performances to build an 'online sport resume'. VitalStream's proprietary transcoding framework, configured to STACK Magazine's specific requirements, enables students to submit videos in most formats, including Windows Media, Quicktime, MPEG, DV and 3GP. VitalStream converts the video clips to Flash 8 and streams them on the MySTACK Web site, ensuring that all online content is of high-quality and deployed easily.

"MySTACK is a compelling example of why consumer-generated video content is helping to drive audience growth on the Internet," said Jack Waterman, Chairman and CEO of VitalStream. "VitalStream will provide MySTACK with a set of rich content delivery and reporting solutions that drive a dynamic user experience and enable MySTACK to effectively manage their streaming requirements"

"As the pioneer of the original Flash video streaming platform, we believe that VitalStream was the best vendor to help stream high-quality video content for our users," said Nick Palazzo, Co-Founder of STACK. "MySTACK is uniquely positioned to become the ultimate recruiting tool and premier destination for high school sports video. Thus, we needed a flexible, cutting-edge solution like VitalStream's to help us best meet our subscribers' needs."

VitalStream's customer base includes Fortune 500 corporations, movie studios, news broadcasters, music companies and advertising agencies, including ABC Radio, CNET, Disney and MySpace. For more information, please visit www.vitalstream.com.

About VitalStream, Inc.

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.

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. The following factors, among others, could cause actual results to differ materially from those described in any forward-looking statements: the risk that MyStack users may not be able to easily upload or stream videos because of problems with our network, software or hardware interface problems, user error or other problems; and the risk that MyStack will not continue as a streaming customer because of technical issues, competition, technology developments, adverse business developments or changing users needs. 

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(r) is a registered trademark of VitalStream, Inc.  All other names and marks are property of their respective holders.

About STACK, LLC

STACK is a media company dedicated to serving the needs of high school athletes. Since February 2005, STACK has pioneered in delivering safe and effective sports performance information and lifestyle content to this hard to reach market segment. Having established partnerships with nearly 4,000 high schools, STACK is a multi-platform leader, connected to active teen males- and their support networks-through MySTACK, STACK Magazine, STACKMag.com, STACK Events and STACK Films.  Information in this release regarding Stack, LLC was provided by Stack, LLC.