Musicrypt and CIRPA Sign Exclusive Deal

Toronto, Canada

Musicrypt Inc. is pleased to announce that it has entered into an exclusive agreement with The Canadian Independent Record Production Association (CIRPA) to provide Canada's rapidly growing independent music sector access to its Digital Media Distribution System (DMDS). The arrangement makes it possible for hundreds of Canadian independent music companies to efficiently distribute digital music tracks to radio, press, retailers, concert promoters, and other industry destinations securely and in broadcast quality. Previously, DMDS digital deliveries were only available to major multinational record labels. Independently released music currently represents over 18% of the record industry in Canada.

"This is a win win win relationship for CIRPA, Musicrypt, and our members. It allows Indie artists to channel their releases through CIRPA and have similar access to radio as the major label artists. We are positive that DMDS will help us provide CIRPA members with the ability to distribute new releases faster, more securely and cheaper than any other way," said Brian Chater, President of CIRPA.

"We are very pleased to be able to offer DMDS services to Canada's independent music entrepreneurs through CIRPA," said Gary Muth, Musicrypt's Vice President of Strategic Alliances. "CIRPA is a natural partner for us. Over the years, CIRPA has worked hard to provide business resources for Canadian independents. Now CIRPA is helping them to better compete globally and leveling the playing field with the majors and bringing music delivery and promotion into the 21st century."

About CIRPA: The Canadian Independent Record Production Association is the trade organization representing the independent sector of the Canadian music and sound recording industry. For almost 30 years CIRPA has been the collective voice of independent music in English-speaking Canada. Established as a national trade association in 1975, its members are Canadian-owned companies and their representatives who are involved in every aspect of music and music-related industries. CIRPA's members include record producers, record labels, recording studios, managers of recording acts, distributors, music publishers, music publicists, music video producers and directors, and others involved in the sector.

About Musicrypt: Musicrypt's Digital Media Distribution System (DMDS) enables user-friendly and secure distribution of media via the Internet. DMDS is a web-based content delivery system that pioneers secure digital file distribution by incorporating biometrics. The first application of DMDS replaces the physical distribution of new musical recordings by record companies from the studio, internally, and to radio stations with more secure, more effective and less costly digital distribution via the Internet. DMDS delivers broadcast quality media from the sender securely and on time to authorized recipients. DMDS delivers the content person-to-person, rather than machine-to-machine. Musicrypt trades on the TSX Venture Exchange (TSX-V) in Toronto under the symbol MCT.

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.