DALLAS (June 8, 2000) � Independent research carried out on behalf of Internet- and networked-video solutions specialist ViewCast.com (Nasdaq: VCST) by U.K.-based research firm Rhetorik reveals an enormous opportunity in video networking/conferencing. The market is set to more than double � from 28% to 58% -- over the medium-term as companies rank video alongside e-mail in terms of its importance to the business. This trend has accelerated over the last two years with a huge 64% of respondents claiming to have installed their video communications equipment over this time frame.

Research was conducted by Rhetorik in January/February 2000 analyzing the video-conferencing and video networking end-user market in the U.K., France and Germany.

According to research, digital (ISDN) H.320 stands out as the most established type of video system, with 55% of respondents currently using this technology and a further 37% plan to install using H.320 as the standard.

The research also showed that where video has not been installed there is an immense lack of understanding of the technology and its many applications. Video streaming and video networking are not terms that are explained readily by those surveyed. In fact, with only 3% of respondents using video for collaborative applications, there is an educational requirement across the board to ensure that video becomes known for more than its conferencing capabilities. The ability to make video announcements across an organization and beyond, along with the facilities to store and search video content make this a powerful communications technology for companies of all types.

Not surprisingly, cost was raised as a major barrier to video implementations by 46% of respondents, indicating that historically this technology has been perceived by the end user market as an expensive communications system. This remains a primary challenge for companies operating in this space even though the key drivers for uptake cited during the survey were savings on costs (42%) and time (40%) spent traveling to meetings.

Where companies have already installed video conferencing systems these are used primarily for inter-company meetings. Within Europe accounts for 43% of usage, with the rest of the world for a further 18% and then meetings with customers and suppliers accounts for 15% and 12% respectively.

Commenting on the research findings, Peter Taylor, managing director, Europe, for ViewCast.com says, "The challenge for us is to change the perception that video is an expensive technology, while increasing its accessibility. In fact, it should be both the cost of acquisition, but most importantly, the ongoing cost of ownership that people investigate. Here we can present a powerful argument for migrating H320 users to H323 and beyond."

"As a company we have worked hard to create a range of products that enable users to integrate video into their communications infrastructure in a cost-effective manner. Add to that the fact that our enterprise-wide user interface makes video communications as simple to use as a telephone and you have a compelling reason to implement today. We can offer point-to-point and multi-point video communications combined with video broadcast in a point-and-click environment that is second nature to the majority of today�s workers," said Taylor.

Richard Foskett, managing director of Rhetorik adds, "In general, confidence in video conferencing and networking is high. End users believe that the technology has a significant role to play in the future of communications and growth projections are strong. It is the most recent developments in video streaming that are going to have a great impact on this market. The ability to broadcast video presentations and video messages means that communications can be personalized by the sender and there is far less likelihood of misinterpretation of messages when using this technology. As leader in this arena we believe that ViewCast.com is ideally placed to shape the market trends from today."

The full research report is available to those who would like to investigate this subject further. Please contact Fiona Keys on 01628 529 100 or email at [email protected] for a copy.

ViewCast.com enables video communication over the Internet and corporate networks through its components, systems, and turnkey solution products. The company is known as a leading global provider of enterprise-wide, digital video communications solutions for both real-time and on-demand applications. Osprey� video capture cards and codecs, ViewCast� Encoding and Streaming Video Solutions and Viewpoint VBX System� products deliver a wide array of video solutions for both analog and digital video communication systems. ViewCast.com�s "Your Video on the Web�" was the initial consumer product and hosting service to bring streaming media capabilities to home users and allow small businesses to easily add video to their web sites. ViewCast.com has the ability to deliver innovative networked video solutions while delivering systems to transition legacy video communication equipment. ViewCast.com products are available either directly from the company, or from leading OEMs, system integrators, leading resellers and application developers worldwide.

Visit the company�s Web site (http://www.viewcast.com) for more information.

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect the Company's current judgment on certain issues. Because such statements apply to future events, they are subject to risks and uncertainties that could cause the actual results to differ materially. Important factors which could cause actual results to differ materially are described in the Company's reports on Form 10-KSB and 10-QSB on file with the Securities and Exchange Commission.

ViewCast.com Europe contacts:

Jo Penn/Peter Taylor
ViewCast.com
01494 582 043

Fiona Keys
BoomPR
01628 529 100
0410 759 149