Musicrypt Inc.
OTC Bulletin Board : MCYPF
TSX VENTURE : MCT

Musicrypt Inc.

June 28, 2005 06:55 ET

Musicrypt Revenues Lead Industry in North America

TORONTO, ONTARIO--(CCNMatthews - June 28, 2005) -

Revenues for the First Half of 2005 Expected to Exceed All of 2004

Musicrypt Inc., (TSX VENTURE:MCT)(OTCBB:MCYPF) the industry's leading digital music distribution company, today announced that its' revenues for the first six months of 2005 are expected to exceed all of 2004. Musicrypt's billings have increased for seven consecutive quarters, with revenue for the first quarter of 2005 being 33% greater than for the fourth quarter of 2004.

"This very encouraging pattern of revenue growth is affirmation of our business model. This growth is being driven by the increased use of DMDS by our major label customers and its' rapid adoption by the independent music sector", said John Heaven, President & CEO of Musicrypt. "Musicrypt is not only the technological and commercial delivery leader in its industry, but is also the revenue leader."

RDR Music Group launched its service of providing DMDS to the indie music sector at Canadian Music Week in Toronto on March 3, 2005. RDR delivered its 100th release to radio on Thursday June 23rd.

"We are just beginning to scratch the surface of the Indie market in this country", said Joe Wood, President of RDR Music. "I expect within the next few months to see the volume increase to at least 100 new independent releases per month with significant growth beyond that."

Musicrypt's Digital Media Distribution System (DMDS) is the premier digital music distribution system in North America, having delivered over 1,000 tracks to over 400,000 destinations. Musicrypt is partnered with Billboard Radio Monitor and endorsed by Clear Channel Radio, the largest radio broadcaster in the United States, as well as XM Satellite Radio.

About Musicrypt:

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 and in the U.S. under OTCBB:MCYPF. For more information on Musicrypt, please 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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