Corus Entertainment Commits to Musicrypt's DMDS Exclusively

Toronto, Canada

CORUS RADIO, Canada's largest radio operator in terms of revenue and audience, has committed its entire chain of stations to receive digital music files exclusively from major record companies and independents via Musicrypt's secure Digital Media Distribution System (DMDS).

CORUS' Vice President, Programming, Ross Winters, said. "DMDS gives our programmers the ability to access music, review it, and collaborate on music programming decisions from personal computers anytime and anywhere. The Musicrypt software has been used throughout CORUS RADIO for over a year now and it has proven to be an excellent tool. Portability is important, and being able to move the secure files easily to my iPod, allows me to take the music with me when I leave the office".

Musicrypt Vice President, Marketing and Sales, Peter Diemer said, "Corus' commitment to use DMDS exclusively at their stations is another vote of confidence for Musicrypt." Musicrypt's DMDS is already installed at most of the commercial radio stations in Canada, which also includes exclusive use by Standard Broadcasting and Rogers Radio. We're very proud to announce that DMDS is now installed at all radio stations in Canada that are electronically monitored for chart purposes".

Corus Entertainment is Canada's largest radio operator and covers major market clusters in high-growth urban centres in B.C. Alberta, Manitoba, Ontario and Quebec. Total reach for Corus as of the Spring 2004 BBM is 7,901,892 listeners. Corus Radio is a part of Corus Entertainment, a Canadian-based market leader in both specialty TV and Radio. Corus also owns Nelvana Limited and other interests include music, television, broadcasting and advertising services. A publicly traded company, Corus is listed on the Toronto (CJR.B) and New York (CJR) Exchanges. Corus' Web site can be found at www.corusentertainment.com.

About Musicrypt: Musicrypt's Digital Media Distribution System (DMDS) is the leading secure B2B digital 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. 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. Musicrypt trades on the TSX Venture Exchange (TSX-V) in Toronto under the symbol MCT and has offices in Vancouver, Calgary, Toronto, Richmond Hill, Montreal, London and Paris.

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.