ViewCast Raises $750,000 in Private Placement

Private Investors and Director Lead Financing to Fund Growth Initiatives

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Jan 06, 2011, 06:00 ET

PLANO, Texas, Jan. 6, 2011 /PRNewswire/ -- ViewCast Corporation (OTC Bulletin Board: VCST), a developer of industry-leading solutions for the transformation, management and delivery of digital media over enterprise, broadband, and mobile networks, today announced that it had entered into subscription agreements with six private investors, including one member of the ViewCast Board of Directors, for the purchase of an aggregate of 2,950,847 shares of ViewCast common stock for an aggregate purchase price of $745,000. The purchase price of common stock was $0.2525 per share, which was the weighted average closing price for the ten trading days immediately prior to December 30, 2010.

"Having jumpstarted revenue growth at the end of 2009 and returned to profitability in the 2010 third quarter, we feel that it is time to accelerate some of the commercial programs we feel will have the biggest impact on sales and shareholder value in 2011," said ViewCast President and CEO Dave Stoner. "Though this financing is small in size, our goal was to raise enough to kickoff these programs without significant impact to the balance sheet or dilution to shareholders. Creating shareholder value is our top priority and we are confident that we have the team in place and the market dynamic to make that happen this year."

David W. Brandenburg, a Director at ViewCast and one of the investors in the financing, said, "The Company has demonstrated its ability to weather an economic storm and to produce improved results while consistently innovating. The additional sales and marketing initiatives that are kicking off this year are very promising. I am pleased to be able to participate in funding those initiatives, which I fully expect to ultimately benefit ViewCast customers and bring value to all shareholders."

About ViewCast

ViewCast develops industry-leading hardware and software for the transformation, management and delivery of professional quality video over broadband, enterprise and mobile networks. ViewCast's award-winning solutions simplify the complex workflows required for the Web-based streaming of news, sports, music, and other video content to computers and mobile devices, empowering broadcasters, businesses, and governments to easily and effectively reach and expand their audiences. With more than 350,000 video capture cards deployed globally, ViewCast sets the standard in the streaming media industry. ViewCast Niagara® streaming appliances, Osprey® video capture cards and VMp™ digital media management systems provide the highly reliable technology required to deliver the multi-platform experiences driving today's digital media market.

ViewCast (www.viewcast.com) is headquartered in Plano, Texas, USA, with sales and distribution channels located globally.

ViewCast, Osprey, VMp and Niagara are trademarks or registered trademarks of ViewCast Corporation or its subsidiaries. All other trademarks are the property of their respective owners.

Safe Harbor Statement

Certain statements in this release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 and reflect the Company's current outlook. Such statements apply to future events and are therefore subject to risks and uncertainties that could cause actual results to differ materially. Important factors that could cause actual results to differ materially from forward-looking statements include, but are not limited to, changes in market and business conditions, demand for the Company's products and services, technological change, the ability of the Company to develop and market new products, increased competition, the ability of the Company to obtain and enforce its patent and avoid infringing other parties' patents, and changes in government regulations. All written and verbal forward-looking statements attributable to ViewCast and any person acting on its behalf are expressly qualified in their entirety by the cautionary statements set forth herein. ViewCast does not 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-K and 10-Q on file with the U.S. Securities and Exchange Commission.

ViewCast Contact:

Jeff Kopang

Vice President of Marketing

Tel: +1 (972) 488-7200

E-mail: [email protected]

PR Agency Contact:

Jessie Glockner

Rainier Communications

Tel: +1 (508) 475-0025 x140

E-mail: [email protected]

Investor Contact:

Matt Clawson