Musicrypt Inc.

Musicrypt Inc.

February 25, 2005 21:05 ET

Musicrypt Closes Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MUSICRYPT INC.

TSX VENTURE SYMBOL: MCT
OTC Bulletin Board SYMBOL: MCYPF

FEBRUARY 25, 2005 - 21:05 ET

Musicrypt Closes Private Placement

TORONTO, ONTARIO--(CCNMatthews - Feb. 25, 2005) - Previously Announced
Shares for Debt Issued

Musicrypt Inc. (TSX VENTURE:MCT)(OTCBB:MCYPF) is pleased to announce
that it has closed a private placement of $250,000 for the issuance of
833,480 Units at a discounted purchase price of $0.30 per Unit. Each
Unit is comprised of one common share and half of a warrant to purchase
one common share at $0.45 per share for six months. The private
placement is subject to the approval of the TSX Venture Exchange. Shares
to be issued under the private placement will be subject to a four month
hold period from the date of approval by the TSX Venture Exchange.

Musicrypt also announced that it had received TSX Venture Exchange
approval for, and has issued, the 720,000 shares under the previously
announced shares for $360,000 debt transaction. These shares are subject
to a hold period expiring on June 12, 2005.

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-V) under the symbol
MCT.

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
    Suite 300, 225 East Beaver Creek Road,
    Richmond Hill, Ontario, Canada L4B 3P4
    or
    Musicrypt Inc.
    Media - James Monaco
    (416) 686-3395
    jmonaco@sympatico.ca