News Release - For immediate release

Telestream Makes Executive Changes to Address Growth

David Heppe steps up to president role while Dan Castles expands CEO role to focus on new opportunities

Nevada City, Calif., January 3, 2006 – Telestream, the leaders in media encoding and workflow automation solutions, today announced executive changes which will better position the company to meet the demands of its rapid growth. David Heppe has been promoted to president and chief operating officer (COO), stepping up from his sales and marketing position to add responsibility for development and operational aspects of Telestream’s business. Dan Castles maintains his chief executive officer (CEO) position and will play a more active role in helping to guide the company’s rapidly expanding Flip4Mac business. The changes became effective January 1, 2006.

“Over the past eight years, Telestream has experienced high-growth and gained a strong position in the broadcast industry segment,” said Dan Castles, CEO of Telestream. “Now, we have some unique opportunities to expand beyond that into broader market segments. I am confident that this change will allow us to focus on those opportunities, while David takes on daily management of our core workgroup and enterprise solutions business.”

“I’m excited about my new role in helping manage the company’s growth to the next level,” said Telestream president and COO, David Heppe. “We’re in a very dynamic market, where the technology and customer needs are changing rapidly. We have been extremely responsive to market needs, which has been a key contributor to our success, and I feel fortunate to be working with the talented and dedicated team at Telestream.”

Heppe’s promotion follows a seven-year history of successfully guiding Telestream’s worldwide sales and marketing programs, most recently as senior vice president of sales and marketing.  Prior to Telestream, Heppe served as managing director of TDK’s European Communications business unit in the UK. Heppe holds engineering degrees from the University of Nevada and Stanford and an MBA from Harvard Business School.

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Executive photos available upon request.

About Telestream (www.telestream.net)

Telestream products have set the standard with the world's leading media and entertainment companies, corporations, and government institutions for the encoding, organizing, and delivery of digital media. Customers rely on Telestream products for convenient, cost-effective, and robust digital media access and exchange over IP networks. The company's core workgroup and enterprise solutions and newer Flip4Mac tools for the Macintosh streamline digital media workflows for content owners, creators, and distributors in any industry segment. Telestream and its team of video experts are located in Nevada City, the “video valley” region of Northern California. The company is privately held.