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--New Contracts with the Department of the Treasury, REJ & Associates (a Prime Contractor for HUD's Federal Housing Administration) and a Renewal with the Nuclear Regulatory Commission--

POMPANO BEACH, FL – November 4, 2009 - Onstream Media Corporation ( OTC: ONSM) a leading online service provider of live and on-demand internet video, corporate web communications and content management applications, today announced two Federal Government agreements including the Department of the Treasury's Internal Revenue Service (IRS) and the Nuclear Regulatory Commission (NRC). Onstream Media also announced a third agreement with strategic partner REJ & Associates, Inc. to provide Webinar services to the U.S. Department of Housing and Urban Development's Federal Housing Administration (FHA) Philadelphia Homeownership Center (HOC).

"Our business relationships with various federal and state governments have never been stronger," said Randy Selman, President and Chief Executive Officer of Onstream Media. "As demand for our multi-media web communication products and services continues to increase on the commercial side of our business, we're also pleased to report continued growth in the government sector, which we expect to continue to rise in the years to come."

Under the agreement with the IRS, Onstream Media will provide its comprehensive Digital Media Services Platform (DMSP) and live and on-demand webcasting services for ongoing education and targeted outreach delivery services. The IRS will use Onstream Media's technology to communicate important tax information to tax professionals, small businesses, and self-employed taxpayers in more dynamic, web-friendly and innovative formats such as podcasts, webinars, live broadcasts or other forms of web-based media.

"The IRS is always looking for better ways to use the latest technology to deliver critical tax information to the public," said Rob Wilkerson, director of IRS's Communications, Liaison and Disclosure. "Web-based communication provides a convenient, flexible and efficient way for taxpayers and tax professionals to get the latest information from IRS sources."

Under the HUD/FHA Philadelphia Homeownership Centers agreement with REJ & Associates, Inc., Onstream Media is subcontracted to provide audio-based web conferencing services that enable FHA to bring employees and other participants from around the country together for online workshops, seminars and trainings. REJ & Associates, Inc., a minority-owned, federally certified 8(a) and SDB located in Baltimore, MD., provides customers with integrated marketing and communications services. The company specializes in radio and television broadcast, print, internet and event production services.

"We're pleased to be working with Onstream Media and think that their software and support services offer great solutions and complement our ability to deliver webcast services to various government entities," said Elliott A. Wiley, Founder, President & CEO of REJ. "We're excited about this new strategic partnership and the opportunity it presents to open many more doors for REJ & Associates as well as Onstream Media."

In addition, the NRC has exercised its first one year option to renew and extend its multi-year agreement with Onstream Media to provide ongoing webcasting, streaming media and multi-media services. The company began providing the NRC with its webcasting services in March, 2008.

"Onstream has been able to provide live and archived video broadcasts to the NRC which helps create much-needed transparency and opens up the regulatory process to the general public," added Selman. "In fact, more and more government agencies are turning to Onstream Media to provide video and audio broadcasts online to ensure that public hearings, training material and other specialized events and information are available to reach their constituents, industry partners and employees."

Onstream Media is now providing its webcasting and Digital Media Services Platform (DMSP) to approximately 30 federal, state and local government agencies. The company's GSA number is GS-35F-0211S. For additional information on Onstream Media's products and services, contact George Stemper at 954-917-6655 or gstemper@onstreammedia.com.

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, streaming video, mobile streaming 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, 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, BT Conferencing, eBay 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.