ViewCast Announces Financial Results for Fourth Quarter and Fiscal Year 2002

Revenues increase 128% from previous quarter and 31% from the previous year

DALLAS (April 16, 2003) � ViewCast Corporation (VCST.OB), a leading global provider of high-quality video communications for businesses and media enterprises, today reported financial results for the fourth quarter and year ended December 31, 2002.

FY 2002 Highlights

• Fourth quarter revenues grew sequentially by 128%
• FY 2002 revenues increased by 31% over FY 2001
• Completed the acquisition of Delta Computec Inc. (DCi)
• Chosen by Siemens Information and Communications Group for Video Conferencing in Fully-Integrated Trading Solution
• Debuted the new Osprey-540, which bridges the gap between professional video and streaming

Fourth Quarter Results

Revenues for the fourth quarter 2002 were $4.8 million, an increase from the $2.1 million in the previous quarter, and the $2.0 million reported in the fourth quarter 2001.

Net loss for the fourth quarter was $848 thousand or ($.05) per share, compared to a net loss of $1.0 million, or ($.06) per share, in the previous quarter. The net loss in the fourth quarter 2001 was $1.9 million, or ($0.12) per share.

Fiscal 2002 Annual Results

For fiscal year 2002, ViewCast�s annual revenues grew to $10.4 million, compared to the $8.0 million reported in fiscal 2001. The increase in revenue was primarily due to the acquisition of DCi during the fourth quarter of 2002 and an increased brand awareness of the Niagara� streaming and encoding servers.

The net loss for FY 2002 was $4.1 million or ($0.24) per share, compared to a net loss of $9.1 million, or ($0.59) per share reported in 2002. Due to internal cost containment initiatives total operating expenses for the year were $9.3 million, a 28% decrease from the $13.0 million reported in FY 2001.

"This quarter and year-end was a marked improvement for ViewCast,� said George Platt, president and CEO. �We are realizing the benefits of strategic initiatives put in place last year in an effort to accomplish our long-term goals of increasing top line revenue, achieving profitable results and strengthening our balance sheet. One of the major initiatives was our aggressive search for an acquisition target with complementary operations. DCi possesses operations that have expanded our opportunities in both currently served and new markets. In 2003, we plan to focus our resources on research and development activities related to video communications applications, thus aiding in the design and development of next generation products and software applications.�

Mr. Platt concluded by stating, �By capitalizing on our current foundation of successful products and services, we will maximize our return on development, increase gross profit margins in our offerings, and address the essential areas of the recovering video communications and technology market. �

�We are pleased with the progress made in achieving our financial objectives and will continue progress towards our goals throughout 2003,� said Laurie Latham, ViewCast chief financial officer. �During 2002, our operating improvements yielded lower expense levels as we continued to increase sales, make investments in our core video technology and processing techniques. Going forward, our distribution strategy will be to utilize a combination of our direct sales force, resellers, system integrators, OEMs and custom application developers to distribute our products and service solutions. We intend to progress on plans and alternatives to increase the revenue growth rate and financial resources of the company, including seeking additional acquisitions. We strongly believe in the strategy we put into place last year and believe it will allow us to achieve our long-term financial goals.�

About ViewCast Corporation

ViewCast develops a variety of products and services for network video communications, including Osprey® Video capture cards, Niagara® streaming encoders and servers and Viewpoint VBX switches and gateway, and provides professional IT services through its wholly owned subsidiary Delta Computec Inc.

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 and IT services 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; the ability to integrate the assets and operations of DCi into the operations of ViewCast; and the ability of the company to obtain and enforce its patents and avoid infringing upon third parties' patents. 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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