Musicrypt Inc.

Musicrypt Inc.

March 10, 2005 19:59 ET

Musicrypt Closes Previously Announced Private Placement, Issues Shares for Debt & Grants Options


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MUSICRYPT INC.

TSX VENTURE SYMBOL: MCT
OTC Bulletin Board SYMBOL: MCYPF

MARCH 10, 2005 - 19:59 ET

Musicrypt Closes Previously Announced Private
Placement, Issues Shares for Debt & Grants Options

TORONTO, ONTARIO--(CCNMatthews - March 10, 2005) - Musicrypt Inc. (TSX
VENTURE:MCT)(OTCBB:MCYPF) announced that the private placement
previously announced on February 25 has been approved by the TSX Venture
Exchange and has been closed. Shares to be issued under the private
placement will be subject to a hold period expiring on July 3, 2005.

Musicrypt also announced that it had issued 54,546 shares under a
previously announced and approved share for debt transaction. The
company has also agreed, subject to regulatory approval, to issue 21,818
shares for a trade debt of $12,000.

Musicrypt has granted the following options to directors and officers:
500,000 were granted March 7, 2005 exercisable at the three month
weighted average market price of $0.44 per share, subject to regulatory
approval. These options expire five years from the date of grant and are
subject to standard vesting provisions.

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.

Musicrypt trades on the TSX Venture Exchange (TSX VENTURE:MCT) and on
the (OTCBB:MCYPF). Visit 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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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Musicrypt Inc.
    John Heaven
    President & CEO
    (905)-763-3553
    or
    Musicrypt Inc.
    James Monaco
    Media
    (416) 686-3395
    jmonaco@sympatico.ca
    www.musicrypt.com