YANGAROO's CEO Sets the Record Straight



    
    YANGAROO's Patents and Infringement Claims Not Affected by Competitor
    Activity
    

    TORONTO, Oct. 6 /CNW/ - YANGAROO Inc., (TSX-V: YOO, OTCBB: YOOIF) the
industry's leading secure digital media distribution company today issued an
update of the status of its patents.
    "There will be no impact whatsoever from the recent allowance of Destiny
Media Technologies Inc.'s (OTCBB:DSNY) U.S. patent application on our
intellectual property rights. None of our two granted U.S. and Canadian
patents, our pending U.S. patents, or our $15 million infringement and $25
million defamation claims against Destiny will be affected," said John Heaven,
President and CEO of YANGAROO. "The content of their patent applications has
been reviewed in both the Canadian and the US prosecution of our patent
applications and no Examiner has ever considered the content of their
applications relevant to the patentability of our claims."
    Destiny had previously abandoned the corresponding application in Canada,
and then after several years of inactivity revived and amended the same
application in the U.S to narrow the claims. It has no application in Canada
or bearing on YANGAROO's Canadian patent or Canadian $15 million infringement
claim against Destiny.
    The Destiny application for MPE ("Music Protected by Encryption")
narrowly claims a specific key management process for decrypting media
delivered in a single file. The single file must have an integral decryption
engine embedded in the file with the media content. In other words, every time
a user receives a media track, it has an embedded decryption engine with it.
The decryption process at the user's end relies on a decryption key that is
itself encrypted with a user key which is bonded to the user's computing
device, e.g. the user key must be based on a serial no. or other
characteristic of the user's computer. The decryption key must be received
through a different communication path from the media file, meaning it cannot
come from the same source as the media file; there must be a separate key
management server (e.g. DRM server) for providing a key to decode the media.
    Neither YANGAROO'S Digital Media Distribution System (DMDS), nor
YANGAROO'S granted and pending patents fall within the claims contained in
Destiny's application. The contents of this release have been vetted by patent
counsel for YANGAROO.

    ABOUT YANGAROO

    YANGAROO'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.
    YANGAROO's DMDS has made over five million deliveries of over 11,000
songs from more than 600 record labels to destinations which include radio
stations representing over 35 US broadcast chains. DMDS is the only system
that can digitally deliver music across the U.S., Canada and the UK. YANGAROO
has offices in Toronto, New York, Los Angeles, and London, UK. YANGAROO trades
on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under
OTCBB:YOOIF. For further information, please contact John Heaven at
905-763-3553 or visit www.yangaroo.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.

    %SEDAR: 00018809E




For further information:

For further information: for press inquiries contact: Matthew Caldecutt,
Gina Preoteasa, Trylon SMR, (212) 725-2295, matthew@trylonsmr.com,
gina@trylonsmr.com

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