ViewCast Announces Financial Results for Second Quarter 2002
Revenues for the Quarter Increased 19% Sequentially

DALLAS (August 14, 2002) - ViewCast Corporation (VCST.OB), a leading global provider of high quality video communications solutions for businesses and media enterprises, today reported financial results for the second quarter ended June 30, 2002.

Revenues for the second quarter were $1.9 million, which represents a sequential increase of 19% from the $1.6 million reported in the first quarter, and a 6% increase from the $1.8 million reported in the second quarter of fiscal 2001. Basic and diluted net loss per share was $0.3 cents, a decrease from $0.11 cents reported in the first quarter of the current fiscal year. Total operating expenses decreased for the quarter to $2.3 million, as compared to the $2.5 million reported in the prior quarter, and $3.5 million in the second quarter of 2001. Other income for the second quarter included a gain from sale of marketable securities of $1.07 million.

"We are very pleased with the sequential improvements reflected in this quarter's results," said George Platt, President and Chief Executive Officer. "Excluding the gain of over $1.0 million on the sale of marketable securities, the second quarter's decrease in net loss of 44% over the prior year was a direct result of the stringent cost cutting initiatives implemented throughout the past year. We also reduced debt by over $2 million during the quarter."

Platt continued, "Our plan is to expand our role as a leading provider of applications for processing, distributing and utilizing high-quality video throughout the global enterprise, integrating media with data and voice as an integral part of the information technology infrastructure. In support of this direction we have added a number of new resellers, both domestically and internationally. As previously announced we entered into an asset purchase agreement that once consummated, we believe will have a positive impact on future revenues by expanding our product channels through their current customer base, as well as complementing our existing reseller program. In conjunction with these initiatives, we have been reviewing several other strategic and synergistic acquisition and reorganization opportunities to accelerate our growth."

About ViewCast Corporation
ViewCast develops products and services that provide video networked solutions. ViewCast maximizes the value of video through its core businesses: Osprey® Video provides the streaming media industry's de facto standard capture cards and ViewCast Systems integrates turnkey streaming and video distribution systems and software. From streaming digital video on the Internet to distribution of broadcast-quality video throughout the corporate enterprise, plus comprehensive video software applications, ViewCast provides the complete range of video solutions.

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

Safe Harbor Statement
Certain statements, including those made by George Platt and those regarding business outlook, contain "forward-looking" information 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 the actual results to differ materially include, without limitation, the following: the ability of the company to service its debt; continued significant losses by the company; the ability of the company to develop and market new products as technology evolves; the ability of the company to meet its capital requirements; increased competition in the video communications market; the ability of the company to maintain current and develop future relationships with third party resellers, manufacturers and suppliers; the ability of the company to meet governmental regulations; and the ability of the company to obtain and enforce its patents and avoid infringing upon third parties' patents. The company will not update the guidance or targets given in these statements during the next reporting period or comment on its progress in the next reporting period to analysts or investors until after it has closed its books on that reporting period. Any statements by persons outside the company speculating on the progress of the quarter will not be based on internal company information and should be assessed accordingly by investors. For a detailed discussion of these and other cautionary statements and factors that could cause actual results to differ from the company's forward-looking statements, please refer to the company's reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission.

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