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Onstream Media's Advanced Solutions Create New Revenue Opportunities for Companies Looking to Monetize Existing Video Content Libraries

POMPANO BEACH, FL – April 19, 2006 – Onstream Media Corporation ( OTC: ONSM), a leading online service provider of live and on-demand communications and digital media services including encoding, editorial, hosting, digital asset management, streaming, e-commerce/pay-per-view and distribution, announced today that it has developed new technologies that will provide Onstream Media’s customers and partners an easy and cost effective way to monetize existing video content libraries. These new technology services include a video search application with custom players and dynamic advertisement insertion into on-demand streaming video content.

The advanced technical solutions now offered by Onstream Media include:

· Fluid transformation of high resolution streams into a myriad of streaming formats and bandwidth speeds. · Automated ingest and digitization of long and short format programs, cataloging each discreet scene as an independent media asset. · Comprehensive metadata tagging of each video scene, and its contents. · A fast multi-format play out center capable of streaming video from multiple media player formats, such as Flash Video and Windows Media, that can be delivered on multiple platforms such as PCs, Macs, mobile smart phones, and iPods. · Transaction processing for packaging and selling video on-demand.

“Almost every media publishing company asks how they can transform their multimedia assets into cash at the last possible moment, personalizing content to individual consumer preferences and price points. This requires a high level of process automation throughout the entire digital supply chain. Onstream Media supplies several critical, often missing pieces, of an effective digital supply chain strategy,” said Michael Moon, President and Chief Executive Officer, Gistics (an industry leading research and analysis firm for the Digital Media industry).

The pace at which traditional and new media publishers are moving video content online continues to grow. The Center for Media Research recently cited that “Internet video services are on the brink of becoming a mainstream phenomenon in the United States.” According to a new forecast from IDC, Internet video services stand to generate over $1.7 billion in revenues by 2010, an increase of more than $1.5 billion from 2005.

Randy Selman, President and Chief Executive Officer of Onstream Media, stated, “Our latest technology and service enhancements to the DMSP enable our customers to generate new revenue streams in a cost-effective way. Using Onstream Media’s DMSP, publishers can now monetize their video content through highly targeted, integrated inserted advertising that is customized to the profiles of individual users, subscribers and/or online buyers. In addition to the DMSP’s technical enhancements, we are concurrently expanding the infrastructure of our Digital Media Services Group to meet anticipated demand from existing and new clients for our digital ad-insertion technologies and related services.”

About Onstream Media Corporation

Founded in 1993, Onstream Media ( OTC: ONSM) is a leading online service provider of live and on-demand communications and digital media services including encoding, editorial, hosting, digital asset management, streaming, e-commerce/pay-per-view and distribution via the Onstream Digital Media Services Platform (DMSP). Onstream Media's pioneering Application Service Provider DMSP provides its customers with the necessary tools for webcasting, web conferencing, managing digital assets, publishing content on the Internet and establishing e-commerce storefronts to transact business online. All of Onstream Media’s services are focused on increasing productivity and revenues, and reducing capital expenditures and operational costs of any organization in an affordable and highly secure environment. As a result, 78% of the Fortune 100 CEOs and CFOs and almost half of the Fortune 1000 companies have used Onstream Media’s services.

Onstream Media customers include: AOL, AAA, AXA Equitable Life Insurance Company, Disney, MGM, Deutsche Bank, Thomson Financial/CCBN, PR Newswire and the U.S. Government.

For more information, visit the Onstream website at http://www.onstreammedia.com or call 954-917-6655.

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.