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POMPANO BEACH, FL – December 20, 2006 – Onstream Media Corporation (OTC: ONSM), a leading online service provider of live and on-demand, digital media communications and applications, today announced new Web 2.0 features, automation and video search capabilities will be available on its Digital Media Services Platform (DMSP) during the first quarter of 2007.

The enhancements enable Onstream Media to easily interface its new Web 2.0 technology with popular applications such as social networks, video classified advertising and video oriented portals. In addition, the automation upgrades will provide “one click” publishing capabilities, allowing the company’s DMSP users to instantly publish a video in multiple formats to the Internet. Onstream Media’s updated video processing technology will also enable its customers to convert speech within videos to text, which greatly improves the accuracy of video search by users.

Unlike many of the “video on the web” companies, Onstream Media continues to deploy its development efforts towards the inevitable integration of the Internet and television by providing tools and services to the professional video content industry, including broadcasters and publishers, as well as websites that contain user-generated content. As a result, many major media and entertainment companies are already using Onstream Media’s DMSP to provide their audiences with fast, convenient access to search videos of all types, including news, weather, sports, movie trailers, music and more.

“With the ever-increasing amount of digital information being created and shared through multiple mediums, more and more companies are utilizing Onstream Media’s video search, indexing, encoding and ad insertion capabilities to more effectively monetize their content and increase viewer stickiness,” said Randy Selman, president and chief executive officer of Onstream Media. “We continue to anticipate market and company needs and provide our clients with the most efficient Digital Media Services Platform to host, manage, distribute and monetize video over the Internet.”

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, Discovery Education, MGM, Deutsche Bank, Rodale, Inc., 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.

Contact Information:
Onstream Media Relations:
Chris Faust
FastLane Communications

Onstream Investor Relations:
Gary Geraci
Equity Performance Group

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.