Onstream Media Corporation

Onstream Media Launches MarketPlace365® Mobile App, Bringing Virtual Events to Mobile Users

POMPANO BEACH, FL – August 23, 2012 - Onstream Media Corporation (OTC: ONSM), a leading online service provider of live and on-demand corporate audio and web communications, virtual event technology, and social media marketing, today announced the launch of its first virtual event smartphone app, MarketPlace365 Mobile App. The new app, available to end users starting today via download from the Apple App Store (Click Here) and Google Play/Android Market (Click Here) is the mobile version of Onstream Media's MarketPlace365 virtual event platform.

"MarketPlace365 is a versatile tool that can be used by event organizers, tradeshow planners and corporations to host webcasts, web conferences, trade shows and permanent marketplaces. Now, organizers can open up participation in their events to audiences on phones and tablets, as well as to those on computers," said Randy Selman, President and CEO of Onstream Media. "This provides organizers with a significantly greater ability to increase engagement, generate leads and grow revenue."

The MarketPlace365 Mobile App is one of the first virtual event apps able to provide a virtual environment with streaming video content that will play on both Android and Apple IOS mobile devices, thanks to Onstream Media's advanced encoding technology.

Event organizers can create their own event-specific versions of the MarketPlace365 Mobile App, and make it available to download, free or with a fee for participation. For end users, the cost of the app will be governed by the cost of the events in which they participate. However, the basic app can be downloaded for free from Apple App Store and Google Play.

The MarketPlace365 platform, and mobile app, offers several "rooms," which can be used together or individually. These include the Exhibition Hall, Auditorium, Learning Center, Media Library and Lounge. Participants can interact with exhibitors, listen to speakers, participate in interactive sessions, download materials and connect with others. The platform incorporates chats, social networking and Q&A.

MarketPlace365 can be used to offer a purely virtual event, or to extend the reach of a physical event. A hybrid event, for instance, can allow a tradeshow participant to walk around a physical show with his or her iPad, and use the app to learn about exhibitors, download information or make appointments.

"The MarketPlace365 Mobile App means that people who want to participate in virtual events no longer need to be tethered to their desktops. This dramatically increases their ability to use their time productively, and to gain access to content that will benefit their businesses," said Selman. "Corporations, publishers, show organizers and others can now provide content to their audiences in the way their audiences want to consume it."

About Onstream Media:

Onstream Media Corporation (OTC: ONSM), is a leading online service provider of live and on-demand corporate audio and web communications, virtual event technology, and social media marketing. Onstream Media's innovative Digital Media Services Platform (DMSP) provides customers with cost effective tools for encoding, managing, indexing, and publishing content via the Internet. The company's MarketPlace365® solution enables publishers, associations, tradeshow promoters and entrepreneurs to rapidly and cost effectively self deploy their own online virtual marketplaces. In addition, Onstream Media provides live and on-demand webcasting, webinars, web and audio conferencing services. To date, 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, 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, BT Conferencing, and Trade Show News Network (TSNN). For more information, visit Onstream Media at http://www.onstreammedia.com or call 954-917-6655.

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.

Media Relations
Chris Faust
Fastlane Communications

Investor Relations
Donald C. Weinberger; Adam Lowensteiner
Wolfe Axelrod Weinberger Associates, LLC
212-370-4500; 212-370-4505