YANGAROO ADOPTS SHAREHOLDERS RIGHTS PLAN

Toronto, Canada
 
YANGAROO Inc. (TSX-V:YOO, OTCBB:YOOIF)  (“YANGAROO” or “the Company”) President and CEO, John Heaven, announced today that the Company's Board of Directors (the “Board”) has adopted a Shareholder Rights Plan (the “Rights Plan”), subject to regulatory approval. The Rights Plan has been adopted to ensure the fair treatment of shareholders in connection with any take-over bid for common shares of YANGAROO. The Rights Plan seeks to provide shareholders with adequate time to properly assess a takeover bid without undue pressure. It also provides the Board with more time to fully consider an unsolicited take-over bid and to explore other alternatives to maximize shareholder value.
 
The Rights Plan is not intended to prevent take-over bids that treat shareholders fairly. Under the Rights Plan, those bids that meet certain requirements intended to protect the interests of all shareholders are deemed to be “Permitted Bids”. Permitted Bids must be made by way of a take-over bid circular prepared in compliance with applicable securities laws and, among other conditions, must remain open for 60 days. In the event a take-over bid does not meet the Permitted Bid Requirements of the Rights Plan, the rights will entitle shareholders, other than any shareholder or shareholders making the takeover bid, to purchase additional common shares of the Company at a substantial discount to the market price of the common shares at that time.
 
The Rights Plan is not being adopted in response to any proposal to acquire control of the Company. The full text of the Rights Plan is available on SEDAR. The Company is seeking the approval of the TSX Venture Exchange after which the Rights Plan will be presented for ratification by the shareholders at YANGAROO’s Annual Meeting to be held in June, 2009. If approved by the shareholders, the Rights Plan will have an initial term of three years.
 
On Behalf of the Board:
“John Heaven”
President & CEO
 
ABOUT YANGAROO
YANGAROO's patented Digital Media Distribution System (DMDS) is a leading secure B2B digital delivery solution for the music and advertising industries. 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.
 
YANGAROO's DMDS has made over five million deliveries of over 11,000 songs from more than 600 record labels to destinations which include radio stations representing over 35 US broadcast chains. The number of deliveries made by US record labels via YANGAROO’s DMDS increased by 266% in 2007, to 1.3 million.
 
DMDS is the only system that can digitally deliver music across the U.S., Canada and the UK. YANGAROO has offices in Toronto, New York, Los Angeles, and London, UK. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under OTCBB:YOOIF. For further information, please contact John Heaven at 905-763-3553 or visit www.yangaroo.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.