Gross Revenues Expected to Soar 22 Percent in Third Quarter 2005

DALLAS � Oct. 18, 2005 � ViewCast Corporation (VCST.OB), a developer of video and audio communications products enabling dynamic content delivery, announced today that preliminary gross revenues are expected to increase approximately 22 percent to $6.2 million for the third quarter ended September 30, 2005, compared to $5.1 million in the third quarter of 2004. The substantial rise in revenue in the third quarter of 2005 over the prior year's third quarter is due primarily to a 27 percent increase in sales of the company's core business lines -- Osprey� Video capture cards, Niagara� video encoders/servers, and ViewCast� IVN enterprise software and system products.

"ViewCast is gaining momentum. The strength of our portfolio of products and services is starting to generate additional operating cash flow, which is good news for our shareholders," said George Platt, CEO of ViewCast. "Accelerating product sales and increasing cash flow, coupled with recent initiatives to restructure our balance sheet have made significant improvements to the company's financial position. As demand for our video communications products continues to grow, ViewCast is making great strides in achieving our goal of a profitable future."

These gross revenue results are preliminary and could change prior to release of ViewCast's third quarter results, which are expected to be announced on Monday, November 14, 2005.

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.