ViewCast Corporation Announces Second Quarter 2005 Financial Results

Highlights Include 17% Year-Over-Year Quarterly Revenue Increaseadvertisement

DALLAS — May 24, 2005 — ViewCast Corporation (OTCBB:VCST - News), today reported financial results for the second quarter ended June 30, 2005.

Second Quarter Results

Total revenues for the second quarter of 2005 were $5.63 million, an increase of 17 percent over the $4.82 million reported in the second quarter of 2004.

"We are pleased with the progress we have made over the past year as evidenced by our double-digit total revenue increase, driven by the substantial growth achieved in our core business," said George Platt, president and chief executive officer of ViewCast. "Specifically, our Osprey 230 and 560 high performance video capture cards experienced increased demand in North America and the international markets, including India and Europe. Furthermore, the pipeline for our newly introduced Niagara PowerStream Pro encoding appliance remains robust with a very strong backlog, consistent with the feedback we have received from broadcasters and other industry professionals. We believe this product will be integral to us achieving profitability in the near future."

Net loss for the second quarter of 2005 was $667,026, or ($0.03) per share, compared to a loss of $1.88 million, or ($0.10) per share, in the second quarter of 2004. The net loss for the second quarter was impacted by an increase in non-operating expenses due to one-time charges for debt conversion expense of $14,612 in 2005 and of $1,233,723 in 2004. The debt conversion expense was recorded in accordance with SFAS No. 84, "Induced Conversions of Convertible Debt" to recognize an imputed valuation of the conversion shares.

Total operating expenses for the second quarter of 2005 were $2.59 million, an 8 percent increase from the $2.39 million reported in the second quarter of 2004. The increase was attributed to further investment in customer support and marketing, as well as research and development, for the introduction of the Niagara PowerStream Pro and other new products scheduled for late 2005.

Second quarter EBITDA (earnings before interest, taxes, depreciation, amortization and other income/expense items) was a loss of $176,218, compared with the EBIDTA loss of $258,905 reported in the second quarter of 2004. The Company considers EBIDTA to be an important measure of performance because it reflects one of the funding resources available to the Company's operations that may be used to evaluate the actual performance of the Company.

Recognition

In May, the Company was selected by the Dallas Morning News as one of the 200 largest companies in the Dallas-Fort Worth area, based on fiscal year 2004 revenue as well as income, assets and number of employees.

Mr. Platt commented, "We are honored to be among a leading group of companies that were named as DFW's top 200 largest. This recognition is representative of our revenue and market-share growth as well as the Company's presence and reputation in the area."

Upcoming Events

ViewCast will exhibit at the International Broadcast Conference (IBC) 2005, a leading event for professionals involved in the creation, management and delivery of entertainment content, which will be held at the Amsterdam RAI from September 9 to 13, 2005 in Stand number 7.801.

The Company will also exhibit at the Worship Facilities Expo (WFE), one of the largest comprehensive conferences in the worship community offering a wide variety of planning and education seminars regarding audio/video, theatrical lighting, building systems and information technology, which will be held in Nashville from October 19 to 21, 2005 in Booth number 609.

About ViewCast Corporation

ViewCast� develops video and audio communications products for delivering content dynamically via a variety of network types and protocols. These products include Osprey� Video capture cards, Niagara� video encoders/servers and ViewCast IVN enterprise software and systems. Our products address the video capture, processing and delivery requirements for a broad range of applications and markets. ViewCast also provides professional IT services focused on merged data and video networks 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, 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 develop and market new products as technology evolves, and increased competition in the video communications and IT services market. 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-KSB and 10-QSB on file with the Securities and Exchange Commission.

ViewCast and Niagara are registered trademarks of ViewCast Corporation
Niagara SCX and SimulStream are trademarks of ViewCast Corporation
Osprey is a registered trademark of Osprey Technologies, Inc.
All other trademarks are property of their respective holders.