Video on Demand (VoD) is a technology used to provide a number of programs to a number of users on request. In developing a VoD system, a fundamental problem is load balancing, which is further characterized by optimally placing videos to a number of predefined servers and routing the user program requests to available resources. In this paper, we develop an exact solution algorithm based on Lagrangean relaxation and decomposition to solve the video placement and routing problem. The novelty of the approach can be described as the use of integer programs to obtain feasible solutions to the problem. We also provide a modification to accelerate the proposed algorithm. Computational experimentation reveals that for randomly generated problems with up to 100 nodes and 100 videos, the use of such integer programs help greatly in obtaining good quality solutions (typically within 5% of the optimal solution), even in the very early iterations of the algorithm. Keywords. Integer Programming...