Universal Music Canada and Musicrypt Extend Agreement

July 22, 2005

by -- Musicrypt

Musicrypt Inc. the industry’s leading developer of user-friendly and secure media distribution, today announced Universal Music Canada, Canada's leading record company has extended its exclusive agreement to use Musicrypt’s Digital Media Distribution System (DMDS) to securely
deliver broadcast quality music to radio and throughout the company.

Universal initially committed to DMDS in August 2004 and in the ensuing 11 months has used DMDS exclusively to digitally deliver some of it’s biggest and most significant artists, including U2, Black Eyed Peas, Shania Twain, Elton John, Diana Krall, The Tragically Hip, Christina Aguilera, 3 Doors Down, No Doubt, Bryan Adams, Hillary Duff, The
Killers, Mariah Carey, Gwen Stefani, and many more.

Randy Lennox, President & CEO, Universal Music Canada, said, “In Canada, Musicrypt’s DMDS has revolutionized the way record companies distribute digital files internally and to radio. The progress this company has made in the last 2 years with their patented software is remarkable”.

Major Canadian broadcast chains representing 100% of all chart monitored radio stations now use DMDS, including Canada's three largest broadcasters, Corus Radio, Rogers Media Broadcasting and Standard Radio, on an exclusive basis. Musicrypt's DMDS is currently used by over 85% of
the Canadian music industry.

“Universal Music Canada has been a customer of ours for a year now and a strong partner throughout our entire development phase. After working closely with their entire team, we are very pleased to take this next step forward together”, said Peter Diemer, Vice President, Marketing &
Sales for Musicrypt. “The time, cost savings and efficiencies realized further prove that we’re on track to eliminating the hard copy in the business environment”.

On March 1, 2005 DMDS was endorsed by Clear Channel Radio, America’s largest radio chain with over 110 million listeners choosing Clear Channel programming each week, on March 29, 2005 DMDS was endorsed by XM Satellite Radio the number one satellite network in America, and on June 21, 2005 Musicrypt announced a strategic alliance with Nielson BDS, the leading supplier of terrestrial, satellite and digital radio song performance data.

Musicrypt has now delivered over 1,100 tracks to over 450,000
destinations, clearly making it the dominant secure digital delivery system and revenue leader in North America.

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