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Musicrypt Receives Allowance of US Patent Application

Toronto, Ontario

Unique Features of Biometric Rights Management System Recognized

Musicrypt Inc. (TSX-V: MCT, OTCBB: MCYPF), the industry's leading secure digital music distribution company, is pleased to announce that it has secured allowance of its United States patent application number 09/875,987 entitled "Biometric Rights Management System".  

The Biometric Rights Management System ("BRM") patent application relates to Musicrypt's innovative use of biometric security measures to implement digital rights management in the secure online distribution of music and other digital media. The BRM patent is projected to be in force until 2023.

"The demand for verification of the identity and rights of users accessing valuable digital properties online continues to grow rapidly," said John Heaven, President and CEO of Musicrypt. "Simple passwords are too easily shared among users, undermining their effectiveness as a security measure. Utilizing biometrics to authenticate users can prevent password sharing and limit unauthorized access. The implementation of Biometric Rights Management in our Digital Media Distribution System provides the most advanced and user-friendly security available today for our customers."

A patent application for BRM is pending in Canada, for which the allowance in the US is a positive signal. The BRM patent will augment Musicrypt's intellectual property assets that include the patent entitled "Content Distribution System and Method" that has been granted in Canada (#2,407,774) and its' corresponding US patent application that is now undergoing examination in the US.
 
About Musicrypt:

Musicrypt's patented 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 of broadcast quality media via the internet. For more information on Musicrypt, please visit www.musicrypt.com  or call John Heaven, President  & CEO at 905-763-3553.
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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