Musicrypt Inc.

Musicrypt Inc.

January 10, 2005 06:55 ET

Musicrypt Announces U.S. Launch With State-of-the-Art Music Distribution System


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MUSICRYPT INC.

TSX VENTURE SYMBOL: MCT
OTC Bulletin Board SYMBOL: MCYPF

JANUARY 10, 2005 - 06:55 ET

Musicrypt Announces U.S. Launch With State-of-the-Art
Music Distribution System

TORONTO, ONTARIO--(CCNMatthews - Jan. 10, 2005) -

Leading Digital Distribution Company Aggressively Enters Music Space
After Successful Year in Canada

Musicrypt Inc., (TSX VENTURE:MCT) (OTCBB:MCYPF) the industry's leading
enabler of user-friendly and secure music distribution today announced,
it will enter the United States Music Industry in early 2005, partnered
with Billboard Radio Monitor, following an extremely successful year in
Canada. Musicrypt's Digital Media Distribution System (DMDS) is the
premier digital music distribution system in the industry. DMDS is
currently used by over 85% of the Canadian music industry, which
includes leading record labels such as Sony/BMG Music, EMI Music,
Universal Music and Warner Music. Major Canadian broadcast chains
representing 100% of all chart monitored radio stations now use DMDS,
including Canada's three largest broadcasters, Corus Radio, Rogers Media
Broadcasting and Standard Radio on an exclusive basis.

Musicrypt's DMDS is an easy to use web-based system that requires no
expensive software or hardware. Musicrypt delivers music simultaneously
nationwide and is available 24X7. Its advanced technology allows record
labels, and broadcasters to control the delivery and receipt of their
music.

"Musicrypt's DMDS has dramatically increased the speed of delivery for
SONY/BMG's new music, internally and to the trade. Our promotion,
marketing and sales staff now work with portable digital devices rather
than bulky CD libraries." Said Norman Miller, VP Digital Business, IS&T
and Marketing Services for SONY/BMG Canada, Inc. "We expect to eliminate
the distribution of advance music on CD altogether in 2005 to fully
benefit from the added security that the DMDS model provides."

With the music industry accounting for over 30 Billion dollars today,
Musicrypt has gone to great lengths to develop technology to deliver the
highest possible broadcast quality music to its customers. Musicrypt has
securely delivered over a quarter of a million deliveries' to date with
today's hottest music chart toppers such as Shania Twain, Britney
Spears, U2, 3 Doors Down, Avril Lavigne, Alicia Keys, Depeche Mode,
Jennifer Lopez, Christina Aguilera, Coldplay, Dido, Evanescence, Green
Day, Gwen Stefani, Hoobastank, Jet, Jimmy Eat World, Maroon 5, N.E.R.D.,
R. Kelly, Seal, SUM 41, Sting, The White Stripes, Tim McGraw, Usher and
hundreds of others.

"Based on the high demand for more advanced digital distribution in the
music industry, we are looking forward to launching into the U.S. market
early this year." stated Cliff Hunt, Chairman and co-founder of
Musicrypt. "The music industry is constantly evolving and growing, and
our DMDS is changing the way record labels and broadcasters deliver
quality music files securely and inexpensively. Based on the great
successes we have had in Canada this past year, we are looking forward
to launching our DMDS technology world-wide."

About Musicrypt:

Musicrypt's patent pending 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. Musicrypt trades on the TSX Venture Exchange
(TSX VENTURE) under the symbol MCT and in the U.S. under OTCBB:MCYPF.
For more information on Musicrypt, please visit http://www.musicrypt.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.

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