SOURCE: DigSound, Inc.

January 26, 2006 09:30 ET

DigSound Launches Major Campaign to Sign Composers

SANTA MONICA, CA -- (MARKET WIRE) -- January 26, 2006 -- DigSound, Inc. ("DIGSOUND") (OTC: DGSU), music producers with exclusive digital "watermarking" technology that allows, for the first time, more precise tracking of music usage and reporting, has begun its campaign to sign TV music producers. The Company believes that their superior ability to distribute, track, and more accurately report when and where their music has been played will be extremely attractive to composers.

DIGSOUND has exclusive rights to use and distribute Nielsen Media Research Inc.'s watermarking technology. The Company stated that its digital platform VR24/7, which allows composers to view watermarked content will revolutionize the method of reporting and licensing music on television. "The 'direct distribution' model has proven itself in other industries and will be a powerful and successful weapon manufacturing a paradigm shift in the production music industry," Paul Martin, President of DIGSOUND stated.

DIGSOUND stated that their marketing efforts over the past few months have led to an increased confidence in watermarking music and its market potential. "It is clear that composers are very frustrated with their current situation," Martin added. "When the topic of how composers get paid by the publishers came up at a recent music library seminar, the conversation became very heated."

Mark Northam, President of Film Music Network, (www.filmmusicworld.com, a subscription-based site for professional composers) who hosted the seminar stated, "Watermarking music is a very hot topic in the industry," said Northam. "Given the state of technology today, it just seems like composers should know who is airing their music, and when. Watermarking can provide this information, and if DIGSOUND is prepared to offer it to them, let's get the word out to the composer community as quickly as possible."

In December, DIGSOUND posted a request for music submissions on Film Music World's site. An overwhelming response has prompted the Company to schedule a conference call for the end of January to specifically address details on how composers can watermark their music. Mr. Northam will be leading the discussion, along with Jason Johnson (Creative Services Director for Stimmung), George Gabriel (TV composer -- credits include Baywatch, Kim Possible, National Geographic, and Fox News), and two-time Emmy award winning producer James Rathburn (Project Manager for Nielsen Media Research), who will also be on hand to answer the technical aspects of watermarking music. DIGSOUND expects between 100-200 composers to participate.

About DigSound

Using cutting-edge technologies, DigSound Inc. has created web-based software (VR24/7) that allows music providers, broadcasters and advertisers an online interface, which enables more efficient methods for distributing and monitoring content usage. DIGSOUND will leverage VR24/7 to create a reporting platform for authorized users to access their content. It also provides broadcasters who use DigSound's watermarked content the ability to automate and manage the process of licensing music.

Safe Harbor Act Disclaimer: Forward-looking statements in this release are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks, and uncertainties and actual results could differ from those discussed. This material is information only and is not an offer or solicitation to buy or sell the securities.

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