OutOfMemoryException when send big file 500MB using FileStream ASPNET

I'm using Filestream for read big file (> 500 MB) and I get the OutOfMemoryException.

I use Asp.net , .net 3.5, win2003, iis 6.0

I want this in my app:

Read DATA from Oracle

Uncompress file using FileStream and BZip2

Read file uncompressed and send it to asp.net page for download.

When I read file from disk, Fails !!! and get OutOfMemory...

. My Code is:

using (var fs3 = new FileStream(filePath2, FileMode.Open, FileAccess.Read)) 
        { 
          byte[] b2 = ReadFully(fs3, 1024); 
        } 

 // http://www.yoda.arachsys.com/csharp/readbinary.html
 public static byte[] ReadFully(Stream stream, int initialLength) 
  { 
    // If we've been passed an unhelpful initial length, just 
    // use 32K. 
    if (initialLength < 1) 
    { 
      initialLength = 32768; 
    } 

    byte[] buffer = new byte[initialLength]; 
    int read = 0; 

    int chunk; 
    while ((chunk = stream.Read(buffer, read, buffer.Length - read)) > 0) 
    { 
      read += chunk; 

      // If we've reached the end of our buffer, check to see if there's 
      // any more information 
      if (read == buffer.Length) 
      { 
        int nextByte = stream.ReadByte(); 

        // End of stream? If so, we're done 
        if (nextByte == -1) 
        { 
          return buffer; 
        } 

        // Nope. Resize the buffer, put in the byte we've just 
        // read, and continue 
        byte[] newBuffer = new byte[buffer.Length * 2]; 
        Array.Copy(buffer, newBuffer, buffer.Length); 
        newBuffer[read] = (byte)nextByte; 
        buffer = newBuffer; 
        read++; 
      } 
    } 
    // Buffer is now too big. Shrink it. 
    byte[] ret = new byte[read]; 
    Array.Copy(buffer, ret, read); 
    return ret; 
  } 

Now, I specify my issue better.

Uncompress file using FileStream and BZip2 is OK, all is right.

The Problem is the following:

Read fat big file