Musicrypt’s Q4 Revenues Up 60% and Independent Label Growth Up 159%

Musicrypt’s Q4 Revenues Up 60% and Independent Label Growth Up 159%

Tuesday, March 6, 2007 11:37 AM

Musicrypt Inc. (TSX-V: MCT, OTC: MCYPF), the leader in secure digital media distribution, is fast becoming the preferred choice by both Major and Independent recording labels for the delivery of new music tracks to radio stations and press outlets across the US, Canada and the UK. The company experienced a 60% increase in revenue from its Major and Independent label clients in Q4 2006 over Q4 2005. This increase includes 159% growth in revenues from Independent labels.

“Independent record labels are growing at the fastest rate in decades. Independent music historically accounted for 20% of industry revenues and now represents nearly 30%. This is a trend that will continue for many years to come. Access to radio programmers was traditionally limited to the Major labels, but due to recent industry events, has become much more accessible,” states Chris Montgomery, EVP of Musicrypt. “Our growth across all labels demonstrates that our patented DMDS is the most trusted and secure way to digitally distribute music to radio and press. As the music industry continues to move towards a fully digital distribution model, Musicrypt will continue to work side by side with the industry to insure security, accountability, efficiency and substantial cost savings.”

On March 5, 2007, the Associated Press reported that “four major radio broadcast companies have tentatively agreed to pay the government $12.5 million and provide 8,400 half-hour segments of free airtime for independent record labels and local artists in separate settlements aimed at curbing the persistent practice known as ‘payola,’ according to sources.” Given this development, the opportunity for DMDS to solidify its position as the de facto music delivery system has never been stronger.

Musicrypt’s patented DMDS has delivered over 7,000 different songs from more than 150 record labels to destinations which include radio stations representing over 35 U.S. broadcast chains such as CBS/Infinity, Citadel, Clear Channel, Cox, Cumulus, Emmis, EntreVision, Entercom, Federated Media, Sirius, Journal, DMX, Jones Radio, AOL, Music Choice, Radio One, Salem Communications, Univision, Westwood One, Regent, Premiere Radio, Next Media, XM Satellite Radio, Waitt Media and many others.

Musicrypt is partnered in the U.S. with Billboard, R&R and Nielsen BDS; in the UK, Europe and Australia with Adstream Ltd; and is marketed to the U.S. advertising industry by AWE, a division of Omnicom, and The Gary Group. DMDS is the only digital delivery system that can deliver music throughout the U.S., Canada and the UK.

About Musicrypt Inc.:

Musicrypt’s patented Digital Media Distribution System (DMDS) is essentially an “electronic Brinks truck”. 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. DMDS replaces the physical distribution of musical recordings and advertising to radio, media, retailers and other authorized recipients with more accountable, effective and far less costly digital delivery 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

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 has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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SOURCE: Musicrypt Inc.

PR Contact for Musicrypt Inc.: Sarah Miller, Axis Marketing & PR, Tel: (323) 653-7800, [email protected]

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