Toronto, Ontario
Revenues Up 45%, Indie Revenues Double, US Deliveries Increase Five-fold
Musicrypt Inc. (TSX-V: MCT, OTC: MCYPF), the industry's leading secure digital media distribution company, today announced its annual audited results for the year ended December 31, 2006.
Revenues for fiscal 2006 were 45% higher than for 2005, with revenues in the fourth quarter alone growing by 64%. This growth was driven by a number of positive factors, including a doubling of revenues from the dynamic independent music sector, combined with the addition of new customers in the US and Canada, and increased usage of Musicrypt’s Digital Media Distribution System (DMDS) by existing customers.
“During the year ended December 31, 2006 Musicrypt made considerable progress, which is illustrated by the increase in revenues,” said Musicrypt President & CEO John Heaven. “The rapidly growing adoption of DMDS by the US record and radio industries was demonstrated when the number of US deliveries made via DMDS in the fourth quarter of 2006 increased to over five times the first quarter volume. In the fourth quarter Musicrypt’s geographic diversification in the US was augmented with the entry into the UK and European markets with our new partner Adstream Ltd. Shortly after the year end, in February 2007, we closed a $10 million financing, the largest ever received by the company, which will provide resources for Musicrypt’s continued growth.”
Please see the full text of the financial statements that will be available shortly on www.sedar.com.
In further news, the compensation committee of Musicrypt’s board of directors approved the grant of 150,000 options to an officer. These options will only become exercisable if certain performance targets are met. The exercise price for the options will be set at the preceding three month weighted average trading price.
About Musicrypt:
Musicrypt's patented Digital Media Distribution System (DMDS) is the leading secure B2B digital media delivery solution for the music industry. DMDS is a web-based delivery system that pioneers secure digital file distribution by incorporating biometrics, high-value encryption and watermarking. DMDS replaces the physical distribution of musical recordings and advertising to radio, media, retailers and other authorized recipients with more accountable, effective and far less costly digital delivery of broadcast quality media via the Internet. Musicrypt trades on the TSX Venture Exchange (TSX-V) under the symbol MCT and in the U.S. under OTCBB:MCYPF. For more information on Musicrypt, please visit www.musicrypt.com.
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.