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EMI MUSIC CANADA To Be First Customer for DMDS

Toronto, Canada

Musicrypt Inc. is pleased to announce that EMI Music Canada will be the first revenue generating client for its groundbreaking Digital Media Distribution System (DMDS). DMDS enables user-friendly and secure distribution of media via the Internet.

EMI has installed DMDS with more than 85 staff members and has been using the system to securely send internal music files throughout the company for the past five months.

In May, EMI and Musicrypt made history using DMDS to securely deliver the first single by new Canadian recording artist Jersey - from its creation in the recording studio to EMI, then throughout EMI's offices nationwide and on to rock radio stations, broadcast consultants, Broadcast Data Systems (BDS), and selected publications across Canada. Subsequently, new releases by EMI's major international artists, from their domestic, international, and associated labels, such as A Perfect Circle, Jane's Addiction, and Sarah McLachlan, among others, have been distributed successfully via DMDS.

Rob Brooks, V.P. Marketing EMI Music Canada said, "Musicrypt has demonstrated that DMDS was the best solution for our needs. It's both efficient and economical, while providing the security necessary to protect our valuable music properties."

Derrick Ross, V.P. National Promotion and Media Relations said, "Musicrypt's DMDS is a one stop shop in delivering our music quickly, efficiently and securely throughout our organization and externally to our radio partners without compromising the quality of sound. It has been a pleasure working along side the staff at Musicrypt in getting the system to deliver the kind of information we know our radio clients need."

John Heaven, President and CEO of Musicrypt said, "We are proud to announce that EMI will be Musicrypt's first paying customer. EMI's vision and support was instrumental in developing our industry leading solution. This is a major milestone in the growth of Musicrypt."
The statements contained in this release that are not purely historical are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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