All figures are in Canadian currency except for where otherwise noted.

Revenues for the fourth quarter of fiscal 2007 were $6.8 million compared to $6.9 million in the same period in fiscal 2006, a decrease of 2%. Revenues for the year ended December 31, 2007 were $25.8 million, up 17% from the $22.1 million during the same period last year.

On a constant US dollar basis, revenues for the fourth quarter of fiscal 2007 were USD $6.8 million, up 12% from the USD $6.0 million in the same period last year. Revenues for the year ended December 31, 2007 were USD $24.4 million, up 25% from the USD $19.5 million in the same period last year.

Gross margin for the fourth quarter of fiscal 2007 was 55% compared to 57% in the same period last year. Gross margin for the year ended December 31, 2007 was 55% equal to the same period last year.

Net earnings for the fourth quarter of fiscal 2007 were $0.4 million or $0.01 per share compared with net earnings of $1.3 million or $0.06 per share for the same period last year. Net earnings for the year ended December 31, 2007 were $0.5 million or $0.02 per share compared to net earnings of $0.4 million or $0.2 per share for the same period last year. Earnings for the fourth quarter of 2006 and fiscal 2006 included a pre-tax gain on the termination of a pension plan of $1.2 million.

In the fourth quarter total bookings (note 1) were US$4.5 million compared to US$3.5 million for the same period last year.

Backlog (note 1) at the end of the fourth quarter of fiscal 2007 was US$1.5 million.

"We are very pleased with the rebound in the government segment in 2007 with revenues increasing 93% over 2006 in constant US dollar terms. We were also able to maintain our ground in the commercial markets, holding on to the significant gains that we made in 2006.The strength in our business model is starting to be reflected at the operating income level where income from operations increased from a loss of ($0.2) million in 2006, to income of $0.6 million in 2007 on the back of a 25% increase in constant US dollar revenue gains," said Frederick L. Godard, Chairman, President and Chief Executive Officer of QuStream. "This demonstrates that we are able to grow our business plus realize incremental operating profits simultaneously, despite the significant investments in Research & Development and in Selling & Marketing as we execute on our growth plans."

QuStream will be attending the annual National Association of Broadcasters Convention, therefore the conference call will be held on April 22, 2008, at 5:00 pm (EDT) to discuss these results. Please call local (416) 641-6119 or toll free 1 (866) 542-4265 to join our conference call. To listen to this call at a later date please call local (416) 695-5800 or toll free 1 (800) 408-3053 and use the pass code 3258896. The call will be available here until May 06, 2008 11:59 PM.

QuStream's Fourth Quarter and Full Year Fiscal 2007 information will be available for downloading from the Company's website www.qustream.com or SEDAR www.sedar.com after the close of trading on April 10, 2008.

Note 1:

The Company uses terms such as bookings, shipments and backlog. These terms are not defined by generally accepted accounting principles (GAAP). Our usage of these terms may vary from the usage adopted by other companies. We believe that the combination of bookings (purchase orders received by the company), shipments (orders shipped by the company and invoiced) and closing backlog (opening backlog, plus bookings less shipments) provides a useful indictor for determining how our products are being received by the market and the economic health of the market as it relates to demand for our products. Closing backlog is not a guarantee of future revenues and provides no information about the timing on which future revenue may be recorded. We report our bookings, shipments and backlog in US dollars to reflect the underlying currency of the majority of such contracts and, therefore, reduce the volatility that would result from converting the measure to Canadian dollars.

About QuStream:

QuStream, embracing the PESA brand and FortelDTV(TM) technology, is a global provider of integrated solutions to the creators and distributors of professional video content including the high-definition television and professional audio/video market segments. QuStream is headquartered in Toronto, Canada, with offices in the U.S., Europe and Asia. For more information, visit QuStream at www.qustream.com.

Forward-Looking Statements

The statements made in this press release that are not historical facts contain forward-looking information that involves risk and uncertainties. All statements, other than statements of historical facts, which address QuStream's expectations, should be considered forward-looking statements. Such statements are based on management's exercise of business judgment as well as assumptions made by and information currently available to management. When used in this document, the words "may", "will", "anticipate", "believe", "estimate", "expect", "intend" and words of similar import, are intended to identify any forward-looking statements. You should not place undue reliance on these forward-looking statements. These statements reflect our current view of future events and are subject to certain risks and uncertainties as contained in the Company's filings with Canadian securities regulatory authorities, which in relation to this press release include, but are not limited to, our expected fiscal 2007 organic revenue growth, our expected future design wins, and our expected market share across various customers and product segments. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results could differ materially from those anticipated in these forward-looking statements. We undertake no obligation, and do not intend, to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of any unanticipated events. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.