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Narrowstep to Roll Out Upgraded Player 2.7

Narrowstep has begun to implement a series of new upgrades to its video asset management and network delivery platform to be rolled out in the coming weeks. Included in these upgrades is the release of Narrowstep's new player 2.7 which integrates Microsoft's Silverlight technology and will provide improved functionality to the end-user as well as increased back-end support for Narrowstep's channel owners. In addition, Narrowstep has completed a capacity and feature-set upgrade to its content distribution network which will provide customers with a high quality and cost-effective platform for delivering video over the Internet.

The company has been developing the enhanced player platform as well as the upgraded content distribution network since the company's first fiscal year quarter ended May 31, 2007. The company anticipates a significant decrease in operating costs as a percentage of revenue and capital expenditures moving forward, with the cost reductions having begun in the current quarter.



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