New York / London, January 14, 2008 – Narrowstep™ Inc. (OTC BB: NRWS), the TV on the Internet company, announced its results for the third quarter of fiscal year 2008, ended November 30, 2007.

Operating Highlights for the third quarter:
• Narrowcasting revenue increased 49% over the same quarter of the previous year
• Operating costs decreased by 19% quarter over quarter
• Completed upgrade to content distribution network
• Roll out of upgraded platform with Player 2.7
• Completed phase I of Microsoft Silverlight integration
• Formed strategic relationship with TSS Cross Media Group
• Strategic focus changed to larger enterprise customers

Narrowcasting and other revenues for the three months ended November 30, 2007 increased by $571,571, or 49%, to $1,735,539 as compared to $1,163,968 for the three months ended November 30, 2006. Narrowcasting revenues for the nine months ended November 30, 2007 increased by $1,252,193, or 41%, to $4,294,654 as compared to $3,042,461 for the nine months ended November 30, 2006. The increase in quarter-to-date and year-to-date revenue resulted primarily from the addition of new customers while focusing on retaining its larger and more profitable customers.

Operating costs for the three months ended November 30, 2007 decreased by 19% to $4,555,711, compared to $5,594,024 for the previous quarter. This reduction in operating costs resulted from headcount and other cost reductions due to the Company’s previously announced change in strategic focus. While these reductions contributed to an increase in severance expense during the quarter, the Company has recently made various additional cuts in its operating expenses as a result of streamlining the sales support process. These additional reductions will be reflected gradually over the next two quarters. Total operating expenses for the nine months ended November 30, 2007 were $14,819,900, compared to $8,399,571 for the nine months ended November 30, 2006 reflecting the Company’s investment in its video delivery platform and content distribution network over the last nine months.

As of November 30, 2007, the Company had $6,558,875 in cash.

The Company reported a net loss of $2,791,190 or $0.02 loss per share for the three months ended November 30, 2007, compared to a loss of $1,477,404 or $0.03 loss per share for the three months ended November 30, 2006. The Company reported a loss of $10,973,591 or $0.14 loss per share for the nine months ended November 30, 2007, compared to a loss of $3,932,796 or $0.09 loss per share for the nine months ended November 30, 2006.