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STREAM THEORY AWARDED IMPORTANT STREAMING SOFTWARE PATENT

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Businesses offer virtualized software delivery to online employees and consumers

IRVINE, CA. – August 30, 2006: Stream Theory, Inc., a leading developer of patented virtualized software delivery and digital rights management solutions, today announced it has been awarded U.S. Patent number 7,096,253 for “Method and Apparatus for Streaming Software”. The patent, which covers core technology related to streaming remotely located software programs and data to a local computer, underpins the Company’s worldwide leadership role in virtualized software delivery.

“This new patent, now added to our growing patent portfolio, firmly positions Stream Theory as a focused technology company and leading developer of a virtualized software delivery platform for the Internet and other high-speed networks,” commented Steig Westerberg, CEO of Stream Theory. “Our versatile platform supports the goals of the business world to deliver on-demand software with instant worldwide deployment, centralized updating, measured usage, but without impacting operating systems.

Traditional online delivery methods require complete download, installation on end user computers, and costly one-on-one updates and support. However the Stream Theory virtualized software delivery platform enables businesses to run applications as a network service. Streamed software is delivered to and updated in a secluded environment guaranteeing the integrity of the operating system and all the applications. This new patent granted to Stream Theory helps support the rapidly rising practice of providing software as a service for businesses and game/software/digital media subscriptions and try-before-you-buy for online consumers.

About Stream Theory:
Stream Theory, Inc., develops patented virtualized software delivery and digital rights management solutions and licenses them to businesses for distribution, management and monetization of software and digital media. The Company’s intellectual property is setting the pace for rapid worldwide deployment of software as a service for its enterprise partners as well as game/software/digital media subscriptions and try-before-you-buy for its online consumer-oriented business partners. The Company’s solutions coupled with user-friendly experiences appeal to content developers and publishers, Internet sites and portals, broadband ISP’s, online retailers, enterprise, and other companies interested in economically managing software and digital media. The Company was founded in 1996 and is based in Irvine CA. For more information and licensing inquiries, visit www.streamtheory.com.

Media Relations Contact:
Tim Pivnicny
Stream Theory, Inc.
+1 949 553 5649
pr@streamtheory.com

Investor Relations Contact:
Steig Westerberg
Stream Theory, Inc.
+1 949 833 2800
ir@streamtheory.com

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