Onstream Media Expands Federal Government Business

-New Contracts with the Department of the Treasury, REJ & Associates (a Prime
Contractor for HUD's Federal Housing Administration) and a Renewal with the
Nuclear Regulatory Commission-

POMPANO BEACH, Fla., Nov. 4 /PRNewswire-FirstCall/ -- Onstream Media
Corporation (Nasdaq: ONSM) a leading online service provider of live and
on-demand internet video, corporate web communications and content management
applications, today announced two Federal Government agreements including the
Department of the Treasury's Internal Revenue Service (IRS) and the Nuclear
Regulatory Commission (NRC). Onstream Media also announced a third agreement
with strategic partner REJ & Associates, Inc. to provide Webinar services to
the U.S. Department of Housing and Urban Development's Federal Housing
Administration (FHA) Philadelphia Homeownership Center (HOC).

"Our business relationships with various federal and state governments have
never been stronger," said Randy Selman, President and Chief Executive Officer
of Onstream Media. "As demand for our multi-media web communication products
and services continues to increase on the commercial side of our business,
we're also pleased to report continued growth in the government sector, which
we expect to continue to rise in the years to come."

Under the agreement with the IRS, Onstream Media will provide its
comprehensive Digital Media Services Platform (DMSP) and live and on-demand
webcasting services for ongoing education and targeted outreach delivery
services. The IRS will use Onstream Media's technology to communicate
important tax information to tax professionals, small businesses, and
self-employed taxpayers in more dynamic, web-friendly and innovative formats
such as podcasts, webinars, live broadcasts or other forms of web-based media.

The company expects to deliver approximately 24 recorded, on-demand webinars
and live webcasts in the first year of this agreement that also includes four
subsequent option years. For the video production services portion of the
contract with the IRS, Onstream Media has teamed with the National Press Club,
Broadcast Operations Center to rehearse, film, stream live and archive the
webinars, which can be easily played back via the web on-demand.

"The IRS is always looking for better ways to use the latest technology to
deliver critical tax information to the public," said Rob Wilkerson, director
of IRS's Communications, Liaison and Disclosure. "Web-based communication
provides a convenient, flexible and efficient way for taxpayers and tax
professionals to get the latest information from IRS sources."

Under the HUD/FHA Philadelphia Homeownership Centers agreement with REJ &
Associates, Inc., Onstream Media is subcontracted to provide audio-based web
conferencing services that enable FHA to bring employees and other
participants from around the country together for online workshops, seminars
and trainings. REJ & Associates, Inc., a minority-owned, federally certified
8(a) and SDB located in Baltimore, MD., provides customers with integrated
marketing and communications services. The company specializes in radio and
television broadcast, print, internet and event production services.

"We're pleased to be working with Onstream Media and think that their software
and support services offer great solutions and complement our ability to
deliver webcast services to various government entities," said Elliott A.
Wiley, Founder, President & CEO of REJ. "We're excited about this new
strategic partnership and the opportunity it presents to open many more doors
for REJ & Associates as well as Onstream Media."

In addition, the NRC has exercised its first one year option to renew and
extend its multi-year agreement with Onstream Media to provide ongoing
webcasting, streaming media and multi-media services. The company began
providing the NRC with its webcasting services in March, 2008.

"Onstream has been able to provide live and archived video broadcasts to the
NRC which helps create much-needed transparency and opens up the regulatory
process to the general public," added Selman. "In fact, more and more
government agencies are turning to Onstream Media to provide video and audio
broadcasts online to ensure that public hearings, training material and other
specialized events and information are available to reach their constituents,
industry partners and employees."

Onstream Media is now providing its webcasting and Digital Media Services
Platform (DMSP) to approximately 30 federal, state and local government
agencies. The company's GSA number is GS-35F-0211S. For additional information
on Onstream Media's products and services, contact George Stemper at
954-917-6655 or gstemper@onstreammedia.com.

About Onstream Media:
Onstream Media Corporation (Nasdaq: ONSM) is an online service provider of
live and on-demand internet video, corporate web communications and content
management applications. Onstream Media's pioneering Digital Media Services
Platform (DMSP) provides customers with cost effective tools for encoding,
managing, indexing, and publishing content via the Internet. The DMSP provides
our clients with intelligent delivery and syndication of video advertising,
streaming video, mobile streaming and supports pay-per-view for online video
and other rich media assets. The DMSP also provides an efficient workflow for
transcoding and publishing user- generated content in combination with social
networks and online video classifieds, utilizing Onstream Media's Auction
Video(TM) (patent pending) technology. In addition, Onstream Media provides
live and on-demand webcasting, webinars, web and audio conferencing services.
In fact, almost half of the Fortune 1000 companies and 78% of the Fortune 100
CEOs and CFOs have used Onstream Media's services.
Select Onstream Media customers include: AAA, Bonnier Corporation, Dell,
Disney, Georgetown University, National Press Club, PR Newswire,
Shareholder.com (NASDAQ), Sony Pictures and the U.S. Government. Onstream
Media's strategic relationships include Akamai, Adobe, BT Conferencing, eBay
and Qwest. For more information, visit Onstream Media at
http://www.onstreammedia.com or call 954-917-6655.

Media Relations:
Chris Faust
FastLane
973-226-4379
cfaust@fast-lane.net

Investor Relations:
Brett Maas
Hayden IR
646-536-7331
brett@haydenir.com

Cautionary Note Regarding Forward Looking Statements
Certain statements in this document and elsewhere by Onstream Media are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such information includes, without limitation,
the business outlook, assessment of market conditions, anticipated financial
and operating results, strategies, future plans, contingencies and
contemplated transactions of the company. Such forward-looking statements are
not guarantees of future performance and are subject to known and unknown
risks, uncertainties and other factors which may cause or contribute to actual
results of company operations, or the performance or achievements of the
company or industry results, to differ materially from those expressed, or
implied by the forward-looking statements. In addition to any such risks,
uncertainties and other factors discussed elsewhere herein, risks,
uncertainties and other factors that could cause or contribute to actual
results differing materially from those expressed or implied for the forward-
looking statements include, but are not limited to fluctuations in demand;
changes to economic growth in the U.S. economy; government policies and
regulations, including, but not limited to those affecting the Internet.
Onstream Media undertakes no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events or
otherwise. Actual results, performance or achievements could differ materially
from those anticipated in such forward-looking statements as a result of
certain factors, including those set forth in Onstream Media Corporation's
filings with the Securities and Exchange Commission.

SOURCE Onstream Media Corporation

Media Relations: Chris Faust, FastLane, +1-973-226-4379, cfaust@fast-lane.net,
Investor Relations: Brett Maas, Hayden IR, +1-646-536-7331,
brett@haydenir.com