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Onstream Media Set To Introduce Visual Webcaster HD™ and iEncode

POMPANO BEACH, FL – October 10, 2007 – Onstream Media Corporation ( OTC: ONSM), an online service provider of live and on-demand digital media, communications and applications, announced today that it is set to release an upgrade to its Visual Webcaster service, featuring broadcast quality video using the industry standard 16:9 aspect ratio, called Visual Webcaster HD™. The new upgrade includes the ability to use high definition cameras and other HD sources input via SDI (Serial Digital Interface) into Onstream Media’s encoders providing a broadcast-quality experience. In addition, the new upgrade includes encoding for Windows, RealTime, QuickTime and Flash media formats.

Onstream Media will soon offer iEncode™, a full-featured, turnkey, standalone webcasting solution, which it expects to deploy prior to the end of the year.  The iEncode version of Visual Webcaster is being designed to operate inside a corporate LAN environment with multicast capabilities.  iEncode will enable the webcasting of audio and video to a virtually unlimited number of viewers through Onstream Media’s partnership with Akamai, utilizing their Content Delivery Network (CDN).  Both the new Visual Webcaster HD and iEncode standalone version will be fully compatible with Onstream Media’s Digital Media Services Platform (DMSP) for archiving, intelligent indexing and retrieval.

"Onstream Media was able to rapidly respond to the accelerating demand for higher quality video in web based applications worldwide, and specifically to our larger media, entertainment and broadcasting clients, with the introduction of these new enhancements improving the user experience.   These new upgrades represent yet another important step forward in providing a complete solution for all of our clients’ digital media communications requirements,” stated Randy Selman, President and Chief Executive Officer of Onstream Media.

About Onstream Media:
Onstream Media Corporation ( OTC: ONSM) is an 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 via 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. In addition, Onstream Media provides live and on- demand webcasting, webinars, web and audio conferencing services. In fact, almost half of the Fortune 1000 companies and 78% of the Fortune 100 CEOs and CFOs have used Onstream Media's services.

Select 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:
Beth Amorosi
FastLane Communications

Investor Relations:
Gary Geraci
Equity Performance Group

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.