VSTH Vitalstream Hldgs (MM)

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.