NetStreams® Receives Funding from Austin Ventures

Top tier venture capital group backing NetStreams' efforts to develop innovative Networked Digital Entertainment products

Austin, TX - April 21, 2004 - NetStreams, the leader in IP -based Networked Audio/Video distribution/control solutions, announced today its partnership with Texas' most active venture capital firm, Austin Ventures. The capital infusion gives NetStreams greater leverage to expand its nationwide marketing and communications strategies, as well as the groundbreaking technology behind its product offering.


With $2.4 billion under management and an unmatched reputation, Austin Ventures will provide NetStreams with not only capital investment, but also with years of experience and resources. This collaboration will enable NetStreams to focus at the core of its business -developing revolutionary technology to simplify a consumer's home entertainment experience and making it more enjoyable; thus, achieving its desired growth and continued success.

"NetStreams' IP -based digital entertainment distribution technology will be the basis for the future of whole -house audio & video distribution and control," said Herman Cardenas, president and founder of NetStreams. "Since NetStreams was founded, our team has shown exceptional commitment to revolutionizing home entertainment, and those efforts have produced the benefits behind products like our DigiLinX™ and Musica™ systems. We're very proud to be joined in our commitment by a firm as renowned as Austin Ventures."

"We believe that NetStreams is creating a paradigm shift in its industry while significantly enhancing the consumer experience," said Clark Jernigan - Austin Ventures. "The custom installation market has rapidly gained momentum in recent years, and we're confident NetStreams will be a key enabler of the industry's continued growth with its innovative technology and products.

With the highly anticipated launch of NetStreams IP -based audio products - DigiLinX, slated for Q3 - 2004, NetStreams has created a new standard for distributing and controlling audio in multi -room systems. NetStreams' DigiLinX, is comprised of IP -based audio products networked to distribute audio and control signals over an Ethernet network, using TCP/IP to multiple rooms. Conformance to internationally accepted standard protocols assures easy and elegant interfacing with a wide variety of systems and products, and control via any web browser equipped device (in addition to NetStreams Control Points). Examples of interfaces that NetStreams believes will become popular with its customers are in -wall IP -based touch screen keypads, PDAs, web tablets, and PCs.

DigiLinX offers a scalable system enabling virtually unlimited rooms and virtually unlimited sources. Using standard TCP/IP, DigiLinX has the most advanced integration capabilities available in distributed audio today. Seamless communication with other home systems such as lighting control, home automation, security systems and more is easily achieved. DigiLinX's open architecture allows those systems to feed information for display and control, in real -time, eliminating the need for multiple keypads on one wall, central controllers, matrix switches, and hundreds of hours of programming. In addition to selecting sources, owners can finally browse their digital music content or XM Satellite Radio meta data via color LCD keypad's or any web enabled device, without extensive programming. Listeners can select their ID -tagged music by genre, album, artist or song title.

About Austin Ventures

Austin Ventures has been working with talented entrepreneurs to build valuable companies since 1979. With $2.4 billion under management, AV is the most active venture capital firm in Texas, and one of the most established in the nation. With a focus on business services, computer and communications hardware, and enterprise software, Austin Ventures invests at all stages of company development.

For more information contact Kim Paschall at 512.485.1955, or kpaschall@austinventures.com. Please visit www.austinventures.com.

About NetStreams

Headquartered in Austin, Texas, NetStreams provides sophisticated networked audio leading the marketplace in technological innovation. NetStreams is committed to utilizing state -of -the -art human engineering to create home entertainment products that are truly user -friendly and future -compatible. NetStreams is creating the future of home entertainment today.

For additional information on NetStreams and its innovative products, please visit www.netstreams.com.

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