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BT Conferencing and Onstream Media Announce Global Reseller Agreement

--Onstream's Webcasting, iEncode and Digital Media Services to be Marketed Worldwide by BT Conferencing--

POMPANO BEACH, FL – Oct. 26 /PRNewswire-FirstCall/ - Onstream Media Corporation (OTC: ONSM) an online service provider of live and on-demand internet video, corporate web communications and content management applications, and BT Conferencing, a division of BT Group plc, one of the world's leading providers of communications solutions and services, today announced an expansion of their business relationship with the signing of a new webcasting, iEncode, and digital media services reseller agreement. In addition, Onstream Media will be using BT Conferencing infrastructure and services to support its operations.

The demand for multi-media audio, video and web communication solutions that are integrated on a global level continues to grow despite today's economic slowdown. In fact, the convergence of new web-based technologies, social networking tools and smart telecommunications devices continues to reshape how business gets done today and places Onstream Media's webcasting solutions and digital media services squarely in the middle of this global shift in business communications.

Under the strategic global reseller agreement, BT Conferencing will now be offering Onstream Media's webcasting, iEncode and Digital Media Services to its new and existing clients worldwide.

"Onstream Media is a proven leader in Internet broadcasting and digital media services. Their comprehensive solutions make it easier for large and small businesses to better leverage and manage their ever-growing digital assets and communicate more effectively with their employees, customers and partners no matter where they're geographically located," said Aaron McCormack, CEO of BT Conferencing. "Expanding our existing relationship with Onstream Media will enable us to extend our core product offerings to include streaming and content management systems. We can easily scale with them as demand for webcasting and digital media services continues to increase worldwide."

"BT Conferencing is one of the largest and well respected telecommunications companies in the world. They understand the differences, business nuances and sales techniques in various countries necessary to compete more effectively," said Randy Selman, President and CEO of Onstream Media. "We're pleased to extend our long-standing partnership with BT Conferencing to offer the kind of integrated, web-based, conferencing and multi-media solutions that many multi-national businesses are looking for to communicate more effectively, reduce their operating costs, and monetize their digital assets."

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, utilizing Onstream Media's Auction VideoT (patent pending) technology. 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: AAA, Bonnier Corporation, BT Conferencing, Dell, Disney, Georgetown University, National Press Club, PR Newswire, Shareholder.com (NASDAQ), Sony Pictures 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.

Onstream Media:
Chris Faust
FastLane Communications

Investor Relations:
Brett Maas
Hayden IR

Cautionary Note Regarding Forward Looking Statements

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.