Onstream Media Corporation has signed a purchase agreement to acquire the assets, technology and patents pending of Utah based, and privately owned, Auction Video and Auction Video Japan. Auction Video is a developer of applications that are used in eBay auctions, video classified advertisements and other applications.

The specific terms of the transaction, which is expected to close in the current quarter, were not disclosed but the purchase will be made with a combination of Onstream Media's restricted common stock and cash and is subject to approval by Onstream Media's Board of Directors.

In addition to the technology, Onstream Media will acquire the business operations of Auction Video both in the US and Japan. The U.S. based Auction Video is the creator of most of the company's technology, and the Japanese company has generated most of Auction Video's license agreements with clients. Auction Video's technology is being used in various applications such as online Yellow Pages listings, delivering video to mobile phones, multi-level marketing and online newspaper classified advertisements, and can also provide for direct input from webcams and other imaging equipment.

According to the companies, one of the key components of the acquisition is the video ingestion and flash transcoder that is already integrated into Onstream Media's Digital Media Services Platform (DMSP) and an integral component of the social network services offered as part of Onstream Media's partnership with Five Across, Inc. (Cisco Systems). The acquisition will eliminate the payments now being made by Onstream Media to Auction Video for transaction and maintenance fees for the use of their technology. Greg Ellis, Founder of Auction Video, stated, "We are excited to become a part of Onstream Media and look forward to contributing to its growth and success."

http://www.auctionvideo.com

http://www.onstreammedia.com