Untitled Document


Agreement Enables Both Companies to Offer Integrated, Web-Based Communications Services to Customers & Prospects Worldwide

September 6, 2006

POMPANO BEACH, FL – Onstream Media Corporation ( OTC: ONSM), a leading online service provider of live and on-demand, digital media communications and applications, and Arkadin, a global provider of audio and data conferencing solutions, today announced a strategic technology alliance, enabling both companies to strengthen their respective web-based communications service platforms and serve as resellers of each other’s services.

Under the agreement, Arkadin will immediately begin to provide Onstream Media’s Digital Media Services Platform (DMSP), including turnkey webcasting, webinars, encoding, streaming and production services, to its North American customer base with potential to rollout globally. In exchange, Onstream Media has integrated Arkadin’s web conferencing solutions into its service portfolio, including advanced IP-based desktop sharing, applications sharing, video web cam and event recording features, in addition to audio conferencing capabilities that include reservationless and operator assisted services. The partnership will allow both companies to provide complementary, cost-effective solutions for customers to improve business communications and collaboration, and enhance employee efficiency and productivity.

“Our new alliance with Arkadin will dramatically expand our reach and strengthen our presence in North America, while simultaneously enhancing our web conferencing capabilities,” said Randy Selman, president & CEO, Onstream Media. “As importantly, we will be able to leverage each other’s strengths, providing our respective customers with the very best experience possible at extremely competitive rates.”

“Onstream Media’s state-of-the-art DMSP and webcasting services are an excellent fit with our own conferencing-based services,” said Olivier de Puymorin, CEO and founder of Arkadin. “By gaining access to streaming technology, our customers can enhance their existing audio and web conferences and cost-effectively maximize their reach to geographically dispersed audiences over the Internet through a live or archived webcast. We expect the complementary service offering created by our newly formed partnership to be well-received by a wide range of corporate and government clients.”

About Arkadin:
Arkadin (http://www.arkadin.com) provides professional conferencing services that enable organizations of all sizes, including Fortune Global 500 companies, to better communicate and collaborate using customizable, cost-efficient, user-friendly solutions. With operating centers across Asia, Europe and North America, Arkadin’s core services, ArkadinAnytime, ArkadinEvent and ArkadinDataNow, and best-in-class customer support allow Arkadin to virtually connect people anywhere around the world facilitating easy and cost-effective information sharing and discussion. With a customer base including organizations such as HMV, UNICEF and Volvo, Arkadin’s unique global capabilities and localized service allow individuals to seamlessly communicate using integrated audio and web conferencing services wherever and however they choose.

About Onstream Media:
Founded in 1993, Onstream Media Corporation ( OTC: ONSM) is a leading online service provider of live and on-demand, digital media communications and applications. Onstream Media's pioneering Digital Media Services Platform (DMSP) provides its customers with the necessary tools for webcasting, web conferencing and webinars as well as managing digital assets, publishing content on the Internet in various files and formats 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 for 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. Select 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 Onstream Media at http://www.onstreammedia.com or call 954-917-6655.

Onstream Media
Media Relations:
Chris Faust
FastLane Communications

Investor Relations:
Gary Geraci
Equity Performance Group

Media Relations:
Steve Massinello
Environics Communications for Arkadin

Priscilla Berenson, Director of Marketing
Arkadin, Inc.
1 646 495 7651 or 1 866 427 5234

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.