BWarner Music Newest Customer For Musicrypt

Toronto, Canada

Musicrypt Inc. is pleased to announce that Warner Music Canada has become its newest major label customer. Warner will use Musicrypt's Digital Media Distribution System (DMDS) as its digital delivery service for music releases to radio and internally. Warner conducted an exhaustive pilot program that saw it successfully distribute many new releases by major international artists such as Michael Buble, Red Hot Chili Peppers, Seal, Eric Clapton, Stone Temple Pilots, Great Big Sea and Alanis Morrisette.

"We watched Warner's progress during the pilot with great enthusiasm as radio welcomed one hit after another delivered by DMDS", said Peter Diemer, Vice President Sales & Marketing of Musicrypt Inc. "We are very pleased to welcome Warner Music to our growing list of paying customers."

Warner Music Canada is a division of the Warner Music Group, the world's largest privately held independent music company. The company is home to a collection of the best-known record labels in the music industry including Atlantic, Elektra, Lava, Maverick, Nonesuch, Reprise, Rhino, Sire, Warner Bros. and Word. Warner Music International, a leading company in national and international repertoire operates through 37 affiliates and numerous licensees in more than 50 countries. For more information about Warner Music Group, visit www.wmg.com

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.