ViewCast Announces Record Annual Results for Fiscal 2000

Year–over-Year Revenues Grow 44%

Dallas, Texas, (March 1, 2001) – ViewCast Corporation (Nasdaq: VCST), a leading provider of Internet and networked video solutions, today reported record annual financial results for fiscal 2000 ended December 31, 2000.

Annual revenues grew to $10.4 million in 2000, a 44% increase over $7.3 million reported for 1999. Continued strong demand for the company’s Osprey� subsystem products and the introduction of the new Osprey 500 line drove a 49% increase in sales for Osprey products.The company also attributed a more focused business strategy and better sales execution to improved revenue from its systems products throughout the year.

Gross margins increased to an annualized rate of 54.2% compared to 45.7% in 1999. Net loss for the year 2000 was $8.9 million versus a net loss of $8.5 million reported in 1999, primarily due to increased operating expenses associated with research and development costs and sales and marketing activities. Basic and diluted net loss per share for the year 2000 was $0.62, improved from $0.71 recorded in the previous year.

“We are generally pleased with the company’s overall performance in 2000 and, naturally, the improved revenue results,” said George C. Platt, ViewCast’s president and CEO. “The year has been highlighted by some major achievements – new product introductions for Osprey, a refined and better performing reseller program, and the formation of our OnLine Solutions service offering to focus on the vast opportunities in the B2B video communications market. Most importantly, we have been successful in retaining our experienced personnel while infusing new creative talent to the company during the past year.These accomplishments leave us poised for even greater success in the coming year. We will continue to develop new products and monetize our knowledge and technical expertise in the streaming media and video networking industries. Obviously, our key priorities are to continue to grow revenues, maintain operating expenses and steer towards profitability. We believe these performance objectives, along with a little cooperation from the stock market, should provide improved shareholder value during 2001.”

Revenues for the fourth quarter FY 2000 were $2.6 million, up 33% year-over-year from $2.0 million reported for the quarter ending December 1999 and a sequential decrease from $3.5 million reported for the September 2000 quarter. Net loss for the fourth quarter was $2.3 million versus a net loss of $2.0 million reported in the quarter ended December 31, 1999 and a net loss of $2.1 million reported for the third quarter of 2000.Basic and diluted net loss per share for the fourth quarter was $0.15, unchanged from the year ago period and slightly increased from $0.14 reported for the September quarter.

Mr. Platt further commented, “Clearly we did not experience sequential top line growth from the third to the fourth quarter. Like many other companies, we saw some softening in IT spending from our corporate customers for the systems business. We have not seen a decline in demand for our products, only a longer sales cycle with more thoughtful spending decisions on the customer side. As I have stated before, systems sales are lumpy and therefore not consistent from quarter to quarter. But over the long-term, on an annualized basis, we expect improved revenue growth from our systems business. This quarter does not diminish our focus or market opportunity. Our Osprey sales remain strong with new products in the pipeline, and we are generating increased interest in our Online Solutions. While remaining aware of current economic conditions, we believe we can still generate improving financial results in all of our products and services on a year by year basis.”

The company’s cash and cash equivalents as of December 31, 2000 decreased from the prior quarter to $3.9 million. Total assets were $11.7 million and working capital was approximately $3.9 million. Besides sales, the major source of cash during the year 2000 included proceeds of $4.3 million from the exercise of options and warrants and gross proceeds of $4.45 million from the issuance of long-term debt.

The company will hold a conference call today, March 1, at 5:00 p.m. EST. ViewCast’s management team will discuss the company’s annual and fourth quarter results, the general business outlook and trends going forward. To participate in the call, dial (212) 896-6068 (reservation #17990019).

Investors can listen to the conference call over the Internet through Vcall at www.vcall.com. For those who cannot listen to the live broadcast, a replay will be available shortly after the call at www.vcall.com In addition, a playback of the call will be available by phone. The replay can be accessed by calling (800) 633-8284 (reference reservation #17990019). International callers should call (858) 812-6440.

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; ViewCast Systems integrates turnkey streaming and video distribution systems; and ViewCast Online Solutions delivers complete B2B solutions and video delivery for online video communications. From streaming digital video on the Internet to distribution of broadcast-quality video throughout the corporate enterprise plus comprehensive “click, create and view” video software applications, ViewCast provides the complete range of video solutions.

Visit the Viewcast 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.

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