YANGAROO U.S. Patent Update

June 16, 2008

I am pleased to update you on recent developments in regard to our pending U.S. patent application #10/431,854.

Patent counsel for YANGAROO has filed a complaint with the Director of Enrolment and Discipline at the United States Patent and Trademark Office requesting an investigation into the conduct of Destiny Media Technologies' patent counsel Eugene Derenyi of Stikeman Elliot LLP. The complaint details Mr. Derenyi's pattern of unauthorized and inappropriate written and oral communications with the Examiner of YANGAROO's patent application serial no. 10/431, 854. The inappropriate communications appear to violate US patent law and policy as reflected in 35 U.S.C. 122(c) and in Third Party Attempts to Protest or Otherwise Oppose the Grant of a Published Application, 1269 Off. Gaz. Pat. Office 179 (April 22, 2003).

It is important to note that despite this conduct, the U.S. Examiner has agreed that none of the inappropriately submitted prior art will prevent YANGAROO's patent from proceeding to allowance.

Also attached for your reference is a copy of the Interview Summary of May 28, 2008 referred to in my previous update, indicating that agreement with the Examiner was reached with respect to the patent claims.