Telestream Acquires Live Production and Streaming Specialist Vara Software

Award-Winning, Real-Time Video Production Products Position
Telestream for Explosive Growth in Internet-Based Content Delivery
NEVADA CITY, Calif.--(Business Wire)--
Telestream, the provider of Flip4mac, Episode and FlipFactory
content repurposing and workflow automation products, today announced
that it has completed the acquisition of European-based Vara Software
Ltd., a privately-held company. The acquisition adds the products,
technologies and employees of Vara Software to those of Telestream,
Inc., a privately-held US-based company. Vara Software brings
successful, award-winning live production and streaming products to
the Telestream product family. The acquisition expands Telestream's
reach beyond encoding-based media workflow solutions for leading
broadcast, media and entertainment companies to include powerful tools
for real-time creation and distribution of video content over the Web
for a broad range of businesses.

Vara Software provides real-time production tools, including
webcasting, screencasting and rich media presentation products for
entertainment, corporate communications, education and training.
Webcasting allows companies to reach large, dispersed audiences by
distributing content over the Internet, either live or on demand.
Screencasting combines screen captures, video recordings and audio
narration to provide cost-effective software training and sharing of
computer desktop activity over the Internet.

"Vara Software is a highly-regarded, award-winning company that
has been recognized by industry leaders such as Apple, Inc.," said Dan
Castles, CEO of Telestream. "The ability to quickly capture live
events, create and distribute content for Internet-based content
delivery is experiencing explosive growth. We believe the live element
is going to be even more important going forward. While Vara Software
products currently target individual users and departments within
larger organizations, the technology is well suited to easily migrate
to enterprise-level solutions."

The acquisition moves Telestream into the real-time production end
of the digital media supply chain. Vara Software products are an ideal
fit for the millions of Telestream Flip4Mac Windows Media component
and Episode desktop encoder users who might benefit from these
powerful yet easy-to-use video production tools. Telestream is well
positioned to leverage this innovation for its higher-end
enterprise-level applications. The company also plans to leverage its
existing technologies to add greater value to Vara Software products.

According to Frost and Sullivan's "World Internet Media Streaming
Platforms Market" study (2007), the worldwide broadband subscriber
base has increased to nearly a third of a billion and is forecast to
grow to well over half a billion in 2012.

"The growth of high-speed Internet connections around the world,
including in small and home offices, makes it easier to access
high-quality video and audio content live or on demand," said Mukul
Krishna, Global Director for Digital Media at Frost and Sullivan.
"This has led to accelerated use of streaming media applications such
as webcasting and screencasting. We predict that increased broadband
penetration will continue to be a key driver for these applications."

Vara Software adds 3 new products to Telestream's portfolio

Wirecast ($449-$548) is an advanced live webcasting application
for Mac or Windows that combines multiple video cameras, movies,
desktop output, audio tracks, images and titles to make striking
webcasts that can be streamed live or archived for later broadcast.
Live Earth, which delivered on-demand footage to more than 10 million
simultaneous viewers on MSN.com in July 2007, was powered by Wirecast.

ScreenFlow ($99) is a professional screencasting application for
Mac users that simultaneously captures desktop screens, video camera,
microphone and computer audio elements, and then allows users to add
and edit recordings and publish finished videos to websites or
weblogs. Screenflow is the recipient of two Apple Design Awards. This
innovative product will bring thousands of new customers per month to
the Telestream family.

Videocue ($89) is a toolkit that allows Mac users to write and
record speeches that include video capture of the presenter, on-screen
viewing of the script, plus the ability to add movies, images and
titles for rich media presentations. This enables users to quickly and
easily pre-record presentations for publishing to websites.

Vara Software products are available for immediate purchase at
www.flip4mac.com. Wirecast is also available through Teletream's
worldwide desktop resale network. Telestream will officially introduce
Vara Software offerings at the International Association of
Broadcasters Convention (IBC) in Amsterdam, September 12-16 in Stand
7.C19. More information about Telestream is available at
www.telestream.net.

Trademarked company and product names are the property of their
respective companies.

About Telestream (www.telestream.net & www.flip4mac.com)

Telestream products make it possible to get video content to any
audience regardless of how it is created, distributed or viewed.
Throughout the entire digital media lifecycle, from capture to
viewing, for consumers through high-end professionals, Telestream
products range from components and encoding applications to
fully-automated workflow systems. Telestream enables users in a broad
range of business environments to leverage the value of their video
content. Telestream corporate headquarters are located in Nevada City,
California and its team of video experts are located in France,
Germany, Sweden, UK and US. The company is privately held.

Telestream
Janet Swift, +1-530-470-1328
janet_swift@telestream.net

Copyright Business Wire 2008