Universal Music Canada Next Customer For Musicrypt
August 10, 2004

by -- Musicrypt

TORONTO, ONTARIO -

MUSICRYPT MAKES 100,000th DELIVERY

Musicrypt Inc. is pleased to announce that it has reached agreement with
Universal Music Canada on commercial terms for use of Musicrypt's Digital Media
Distribution System (DMDS).

With the addition of Universal as a paying customer, DMDS is now the secure
digital delivery service of choice for more than 80% of the Canadian music
industry. Major Canadian broadcast chains that collectively represent over 98%
of all chart monitored radio stations use DMDS, including Standard Radio and
Rogers Media Broadcasting on an exclusive basis.

Another important milestone was attained on Thursday July 29th when Musicrypt
completed its 100,000th secure digital delivery. This achievement is brought
more clearly into focus when one contemplates the time, cost and materials
saved, and the leaks prevented, through the use of DMDS.

Jeremy Summers, Director of National Promotion, Universal Music Canada said,
"The improved security and efficiencies DMDS provides for internal distribution
and delivery to radio will be of great benefit to Universal Music Canada. Radio
has welcomed releases that we sent via DMDS and this has enhanced the impact of
our promotional campaigns. DMDS has set the benchmark for the secure digital
delivery of music in Canada. We look forward to working closely with Musicrypt
in the future".

Peter Diemer, Vice President, Marketing & Sales, Musicrypt Inc, said,"In April,
when Universal Music Canada entrusted us with the long awaited and anticipated
lead single from the new album by million selling artist The Tragically Hip, it
was a defining moment for our relationship. Vaccination Scar was exclusively
and securely delivered via DMDS in the middle of the Easter long weekend with
the push of a button. The song was the #1 Most Added Rock Single, the #1 Most
Added Canadian Single and the #1 Most Added Single Overall at Canadian radio
the same week it was released. It also enjoyed the highest debut of the week on
the R & R Canadian Rock Chart and the BDS (Broadcast Data Systems) Rock Spins
and Audience Charts."

About Universal Music Group: Universal Music Group is the world's leading music
company with wholly owned record operations or licensees in 71 countries and is
a unit of Vivendi Universal, a global media and communications company. Its'
businesses also include Universal Music Publishing Group, one of the industry's
largest global music publishing operations.

About Musicrypt: Musicrypt's 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
via the Internet. DMDS delivers broadcast quality media from the sender
securely and on time to authorized recipients. Musicrypt trades on the TSX
Venture Exchange (TSX-V) in Toronto under the symbol MCT and has offices in
Vancouver, Calgary, Toronto, Richmond Hill, Montreal, London and Paris.

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.

- 30 -

FOR FURTHER INFORMATION PLEASE CONTACT :
Musicrypt Inc.
John Heaven
President & CEO
Phone: (905) 763-3553
or
Universal Music Canada
Jeremy Summers
Phone: (416) 718-4000
or
James Monaco
Media
Phone: (416) 686-3395
jmonaco@sympatico.ca
www.musicrypt.com
INDUSTRY : RES
SUBJECT : NWS


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