ViewCast Closes on Sale of DCi's Operations

DALLAS, TX, (NAMC) - ViewCast Corporation (OTCBB:VCST), a developer of video and audio communications products enabling dynamic content delivery, today announced the completion of the sale of the assets and operations of Delta Computec, Inc. (DCi), wholly-owned subsidiary, to an affiliate of Desrosier & Co., a private investment group based in Greenwich, Conn.

Substantially all of DCi's assets, including operating assets, property, contracts and customer lists were sold for a combination of $3,000,000 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 purchasing entity will continue as a ViewCast reseller channel and provider of service and support. Proceeds of the sale will be used to reduce debt and strengthen the company's balance sheet.

"This sale of DCi is a sound business decision for both parties," said George Platt, CEO of ViewCast. "I am pleased that the transaction gives both companies the opportunity to strengthen and grow their core line of business, while we retain DCi as a valued business partner."

About ViewCast Corporation

ViewCast develops video and audio communication products for delivering content dynamically via a variety of network types and protocols. These products include Osprey(R) Video capture cards, Niagara(R) video encoders/servers and ViewCast(R) 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 and those regarding business outlook, contain "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995, which reflect 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 which could cause the actual results to differ materially include, without limitation, the following: the ability of the company to service its debt; continued losses by the company; the ability of the company to develop and market new products as technology evolves; the ability of the company to meet its capital requirements; increased competition in the video communications and IT services market; the ability of the company to maintain current and develop future relationships with third party resellers, manufacturers and suppliers; the ability of the company to meet governmental regulations; and the ability of the company to obtain and enforce its patents; and avoid infringing upon third parties' patents. 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.

All trademarks are property of their respective holders.

ViewCast Corp.
Mark Quigley
972-488-7200 

 
or
Michael A. Burns & Associates Inc.
Virginia Stuart
214-521-8596, ext. 223

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 Website: www.viewcast.com 

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