Aug 8, 2007 POMPANO BEACH, FL – Onstream Media Corporation ( OTC: ONSM), a leading online service provider of live and on-demand, digital media communications and applications, announced today that it has completed an agreement with ASPA Japan Co., Ltd. (ASPA) a leading Video Application Service Provider based in Tokyo, Japan, whereby ASPA will serve as the exclusive sales agent in certain Middle Eastern countries for all of Onstream Media’s products and services. In exchange for this exclusivity, which has an initial term of five years, ASPA will pay Onstream Media an upfront fee of $1.0 million. Under the terms of the agreement, ASPA will have the exclusive right to sell Onstream Media’s products and services to customers located in the Republic of Turkey, Republic of Lebanon, Hashemite Kingdom of Jordan, Arab Republic of Egypt, Saudi Arabia, United Arab Emirates, Kuwait, Qatar and Bahrain. Onstream Media products and services to be marketed by ASPA will include turnkey video solutions provided by the Digital Media Services Platform (DMSP) including digital media hosting, streaming, transcoding, smart encoding, user generated video and Onstream’s Auction Video services as well as webcasting and webconferencing. Randy Selman, President and Chief Executive Officer of Onstream Media, stated, “We are honored that ASPA has shown such a high level of confidence and a demonstrated long-term commitment to Onstream Media in this exclusive relationship. The Middle East represents a new market opportunity for Onstream Media which we will now be able to develop more effectively through ASPA’s existing relationships in the region. In addition, ASPA represents our first major transaction resulting from the efforts of our recently acquired Japan-based sales office.” “The significant investment we made to secure these exclusive rights reflects our belief that Onstream Media’s products and services are well positioned to receive market place acceptance by meeting the widespread demand that currently exists in the Middle East,” said Noboru Takeda, Chief Executive Officer and President of ASPA. “We feel confident that through our combined efforts, we will be able to create significant revenues for both companies from the penetration of these untapped markets.” About ASPA Japan Co., Ltd.: ASPA Japan is a leading Video Application Service Provider based in Tokyo, Japan with distribution partners in Asia and the Middle East. ASPA Japan provides its customers and partners with the most leading edge video technology available today. In the Middle East, ASPA Japan works with its main partner the Arab Japan Association in Tokyo and its Chairman Norio Akahori and CEO Mustapha Assad of Publicis Graphics, one of the largest advertising agencies in the world. For more information on ASPA Japan contact Hiroko Koyama at +81-03-3981-2901 or info@aspa-japan.com {{PERIOD}} About Onstream Media: Onstream Media Corporation ( OTC: ONSM) is a leading online service provider of live and on-demand internet video, corporate web communications and content management applications. Onstream Media's pioneering Digital Media Services Platform (DMSP) provides customers with cost effective tools for encoding, managing, indexing, and publishing content on the Internet. The DMSP provides our clients with intelligent delivery and syndication of video advertising, and supports pay-per-view for online video and other rich media assets. The DMSP also provides an efficient workflow for transcoding and publishing user- generated content in combination with social networks and online video classifieds. Onstream Media also provides live and on-demand webcasting, webinars, web and audio conferencing services. Almost half of the Fortune 1000 companies and 78% of the Fortune 100 CEOs and CFOs have used Onstream Media's services. Onstream Media customers include: AOL, AAA, AXA Equitable Life Insurance Company, Bonnier Corporation, Dell, Deutsche Bank, Disney, National Press Club, NHL, MGM, PR Newswire, Rodale, Inc., Televisa, WireOne, Shareholder.com (NASDAQ), and the U.S. Government. Onstream Media's strategic relationships include Akamai, Adobe, eBay, FiveAcross/Cisco and Qwest. For more information, visit Onstream Media at http://www.onstreammedia.com or call 954-917-6655. Media Relations: Certain statements in this document and elsewhere by Onstream Media are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such information includes, without limitation, the business outlook, assessment of market conditions, anticipated financial and operating results, strategies, future plans, contingencies and contemplated transactions of the company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of company operations, or the performance or achievements of the company or industry results, to differ materially from those expressed, or implied by the forward-looking statements. In addition to any such risks, uncertainties and other factors discussed elsewhere herein, risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied for the forward- looking statements include, but are not limited to fluctuations in demand; changes to economic growth in the U.S. economy; government policies and regulations, including, but not limited to those affecting the Internet. Onstream Media undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including those set forth in Onstream Media Corporation's filings with the Securities and Exchange Commission. |