VitalStream Acquires PlayStream

May 06, 2005

VitalStream Holdings Inc., the parent company of VitalStream, Inc., a streaming media solutions and global content delivery network (CDN) provider, has acquired the business of PlayStream, LLC, a provider of small business streaming media services, headquartered in Seattle, Washington. The combination of PlayStream's small business streaming platform with VitalStream's enterprise streaming solutions is expected to provide customers with a comprehensive, scalable solution for delivering their digital media content on the Internet.

Together, VitalStream and PlayStream will offer a self-service platform for small and medium-size businesses (SMB), small and home office (SOHO) customers, and resellers. This service will be offered under the PlayStream brand. The automation and self-provisioning elements of the PlayStream platform expand VitalStream's reach, making streaming solutions available to a wider range of users.

George Grubb, founder of PlayStream, will take on the role of VP and general manager of the PlayStream division at VitalStream. Although the acquisition agreement has closed, the PlayStream-branded SMB / SOHO service continues without interruption. The deal is valued at $500,000 in cash, 3.75 million shares of VitalStream Holdings, Inc. common stock and 200,000 warrants to purchase common stock at an exercise price of $1.35.