ViewCast Announces Pending Sale of DCi's Operations

Cash Proceeds to be Invested in Core Business Development

DALLAS � Oct. 12, 2005 � ViewCast Corporation (VCST.OB), a developer of video and audio communications products enabling dynamic content delivery, today announced it has entered into a definitive agreement dated as of October 11, 2005 to sell the assets and operations of Delta Computec, Inc. (DCi) to an affiliate of Desrosier & Co., a private investment group based in Greenwich, Conn.

DCi, the company's information technology and customized network support subsidiary, provides services to a diverse customer base in the Northeast U.S. business corridor. The investment group will purchase substantially all of DCi's assets, including operating assets, property, contracts, customer lists for a combination of $3 million in cash at closing, $300,000 in contingent cash payments and the assumption of certain liabilities as outlined in the terms of the agreement. The transaction is expected to close on or before November 11 and remains subject to certain closing conditions. The purchasing entity will continue as a ViewCast reseller channel and provider of service and support.

"This transaction provides tremendous benefits for all parties," said George Platt, CEO of ViewCast. "In the past, DCi has been an important component of the ViewCast corporate structure. Today our strategic plan focuses exclusively on the higher margin area of our business, the video communication and streaming media products. Although DCi will no longer be an operating unit, we will retain the benefit of their continuing as a reseller and key installation and maintenance partner. This sale allows ViewCast to retain all business ties with DCi, while reinvesting in our core growth business. Additionally, the proceeds of the sale will be used to reduce debt and strengthen our balance sheet."

ViewCast develops video and audio communication 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.

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

Safe Harbor Statement
Certain statements, including those made by George Platt or Dave Stoner, contain "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995, which reflects 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 that could cause the actual results to differ materially include, without limitation, 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. All subsequent written and oral forward-looking statements attributable to ViewCast or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements set forth above. ViewCast does not intend or undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date on which the forward-looking statements are made. 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, Osprey, Niagara, Niagara SCX 5.0, GoStream and EZStream are trademarks or registered trademarks of ViewCast Corporation or its subsidiaries.
All other trademarks are property of their respective holders.