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Onstream Media Corporation Set to Deploy Major Technology Upgrades to its VisualWebcaster Platform

POMPANO BEACH, Fla. – May 29, 2007 – Onstream Media Corporation ( OTC: ONSM), a leading online service provider of live and on-demand, digital media communications and applications, reported today that it has completed development of several enhancements to its VisualWebcaster™ platform that are designed to allow the company to maintain its technology lead in the webcasting marketplace. The upgrades to the VisualWebcaster platform will be deployed today.

Notable among the new enhancements to the platform are: Live Quicktime streaming to reach Apple users; Flash streaming; Corrective Polling, a webcast feature that offers corrective feedback to training program participants; a comprehensive online editing tool for webcasts; Client/Agent customization tools for player design and; Instant Messaging for communication between multiple presenters. Additionally, the VisualWebcaster™ platform will be fully integrated with the company’s Digital Media Services Platform (DMSP) for hosting, searching and streaming archived webcasts.

“These new enhancements to our industry-leading webcasting platform represent yet another important step forward in providing a complete solution for all of our clients’ digital media communications requirements,” said Randy Selman, president and chief executive officer of Onstream Media. “Our new technology upgrades not only provide many new conveniences and improved efficiency, but integrate the latest technology available to provide the best video and sound quality and as a result the best possible user experience. Our upgraded webcasting platform, including its integration with our DMSP, provides our webcasting clients with the best in class tools and services needed to more efficiently and effectively distribute the growing body of media-rich information vital to their communications and marketing needs.”

The enhanced VisualWebcaster™ platform also boasts a variety of new features in the embedded media player, including:

· Automatically sizing of player for a user’s screen when the webcast has slides · Expanded support for multiple layouts · Smaller player if webcast does not have slides · Support for 480x360 video size · Stream selection from player instead of Listen Page · Transition effects when slides change · Support for playing Flash SWF when "pushed" from Visual Presenter · Expanded support for various background themes and colors

Resellers of Onstream Media’s VisualWebcaster™ platform will also enjoy a variety of upgrades designed specifically to enhance their individualized product offerings, including the easier upload and selection of client images, an integrated HTML editor, and the ability to fully customize colors or themes, create custom buttons to link to HTML content/external links and the custom positioning of images and text.

About Onstream Media:

Onstream Media Corporation ( OTC: ONSM) is a leading 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 on 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. Onstream Media also provides live and on-demand webcasting, webinars, web and audio conferencing services. Almost half of the Fortune 1000 companies and 78% of the Fortune 100 CEOs and CFOs have used Onstream Media's services.

Onstream Media customers include: AOL, AAA, AXA Equitable Life Insurance Company, Bonnier Corporation, Dell, Deutsche Bank, Disney, NHL, MGM, PR Newswire, Rodale, Inc., Televisa, Thomson Financial/CCBN, and the U.S. Government. For more information, visit Onstream Media at http://www.onstreammedia.com or call 954-917-6655.

Media Relations:
Beth Amorosi
FastLane Communications

Investor Relations:
Gary Geraci
Equity Performance Group

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.