Musicrypt Launches Digital Ad Delivery with Universal Music Group and The Gary Group



    Digital Delivery of Radio Spots Via Musicrypt's DMDS

    TORONTO, June 11 /CNW/ - Musicrypt Inc. (TSX-V: MCT, OTC: MCYPF), the
leader in secure digital media distribution, today announced the successful
launch of its radio advertising delivery service with the support of Los
Angeles based Universal Music Group, the world's largest record company, and
The Gary Group, the largest advertising agency to the recording industry in
the United States.
    "For the past six months our team at UMG in LA has been working with
Musicrypt and The Gary Group to enhance the features of DMDS for the delivery
of advertising," said Vincent Freda, Executive Vice President, Digital
Logistics and Business Services, Universal Music Logistics. "DMDS has proven
itself as a leader in the secure delivery of music, and we expect that same
technology will allow us to send our advertising spots to radio in the same
broadcast quality, quicker, more efficiently, and with significant cost
savings."
    The initial advertising campaign promoting the release of the artist
"Fair to Midland" was sent to radio stations across the U.S. using Musicrypt's
Digital Media Distribution System (DMDS). Musicrypt has been working closely
with Universal and The Gary Group to adapt DMDS for the unique requirements of
the advertising sector. The Gary Group expects to transition to the exclusive
use of DMDS for radio spot delivery over the next four to six months to
provide their clients with more efficient and accountable deliveries as well
as substantial cost savings.
    "We believe that DMDS will enable us to offer a higher level of service
and functionality to our clients," said Dick Gary, Chairman of The Gary Group.
"We will continue to work with DMDS as they roll out new features and services
over the coming months."
    Musicrypt's patented DMDS provides a perfect vehicle for the delivery of
all files, large or small, audio or video. Working to create a more efficient
digital distribution model for the ad sector, the company will build on the
success it has enjoyed in the music sector. Features include transparent and
fully portable biometric user authentication and the ability to securely
access media from any computer anywhere in the world without subscription
based hardware or satellite fees. Further benefits of DMDS include broadcast
quality files, accountability and real-time online reporting.
    "We could not have launched our advertising delivery service to a market
this size without the support of the team at Universal and our partners at The
Gary Group," said Cliff Hunt, Chairman and COO of Musicrypt. "This is an
exciting new revenue generating vertical, and a major step forward for this
company. We estimate the market for radio spot delivery alone exceeds
$100 million."
    Musicrypt is powering the changes occurring in the digital music industry
with its patented DMDS technology. 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 Universal Music Group:

    Universal Music Group is the world's largest music company with wholly
owned record operations or licensees in 77 countries. Its businesses also
include Universal Music Publishing Group, one of the industry's largest global
music publishing operations. Universal Music Group is a unit of Vivendi, a
global media and communications company.

    About The Gary Group:

    The Gary Group, based in Los Angeles, CA has been the major advertising
agency to the recording industry for over 25 years, and is used by more major
and independent labels than any other company. The Gary Group's clients
include Universal Music Group, Warner Bros. Records, Walt Disney Records, Sony
BMG, Capitol Records/EMI and many more. Its television expertise extends to
network, syndication, and local broadcast television, national and local
cable; direct response television and promotional consideration. The Gary
Group's track record is one of success, having created media campaigns for
7 of the 10 all-time highest debuting albums.

    About Musicrypt Inc.:

    Musicrypt's patented Digital Media Distribution System (DMDS) is a
leading secure B2B digital delivery solution for the music and advertising
industries. 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 contact Cliff Hunt at 905-763-3553 or
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 has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.

    %SEDAR: 00018809E




For further information:

For further information: PR Contact for Musicrypt Inc.: Sarah Miller,
Axis Marketing & PR, Tel: (310) 276-2220, smiller@axismarketingpr.com

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