Onstream Media Reaffirms Business Strategy; Sees FY2011 Revenue of $17.7M

Management of Onstream Media Corporation ONSM today expressed continued confidence in its business strategy and in conjunction with that announced record revenues for fiscal and fourth quarter 2011 as well as a fiscal 2011 record of positive cash flow from operating activities (before changes in current assets and liabilities). The comments were in response to shareholder inquiries regarding the recent decline in the Company's share price. Onstream expects to report consolidated revenues for fiscal 2011 of approximately $17.7 million, approximately 6.0% in excess of its revenues for fiscal 2010, and consolidated revenues for the fourth quarter of fiscal 2011 of approximately $4.3 million, approximately 7.1% in excess of its revenues for the fourth quarter of fiscal 2010. The fiscal 2011 revenues represent a record high and although the fiscal 2011 fourth quarter revenues reflected the seasonality Onstream typically experiences in the fourth quarter, they still represented a record high as compared to any previous fiscal fourth quarter. In addition to records set for consolidated revenues, Onstream also expects to report a new record high for revenues from its Infinite Conferencing division in the fourth quarter of fiscal 2011, of approximately $2.0 million. During the fourth quarter of fiscal 2011, Infinite also accomplished its first month ever in excess of 10 million minutes, which month in turn contained a single day record of almost 700,000 minutes.