US Patent Office Recommends Allowance of YANGAROO Patent Application

January 11, 2008

I am pleased to report that the Examiner of our US Patent Application #10/431,854 titled "Content Distribution System and Method" has agreed to submit the application for allowance. We expect that a Notice of Allowance will be issued soon, after which the official patent grant is made. Both the office action previously issued by the Examiner and our subsequent reply as an Interview Summary (labeled as Applicant Arguments/Remarks Made in an Amendmentt) are now publicly available on the USPTO (US Patent and Trademark Office) website.

The "Content Distribution System and Method" patent has been previously granted in Canada and is the basis for our $15 million infringement claim against our competitor Destiny Media Technologies Inc. (OTCBB:DSNY) that is presently before the Federal Court of Canada.