EMI Selects Musicrypt

Press Release

For more information contact: Musicrypt at www.musicrypt.com or call John Heaven, President & CEO (905)-763-3553, or Cliff Hunt, Chairman (905)-763-1796. EMI Music Canada at www.emimusic.ca or call Wojtek Hoch, Director, Digital Media (905)-677-5050

EMI Selects Musicrypt

TORONTO, CANADA, February, 2001 -- EMI Music Canada has selected Musicrypts unique technology solution to enable a new artist release for promotional and commercial download over the Internet. The expected launch date for this new web-only release is in the second quarter of this year. The release will be enabled by Musicrypts unique biometric digital rights management solution to protect it and facilitate superdistribution and portability for users.

Consumers will be able to access the release through websites operated by EMI and its partners. Basic demographic information may be requested from consenting consumers when the promotional track is downloaded to aid with marketing and distribution of the artists works.

We are excited at the prospect of utilizing the marketing potential of Musicrypts technology," said Rob Brooks, Vice President of Marketing and Operations at EMI. We believe that this unique solution will enable us to deliver our artists content to a new and ever-expanding audience through the Internet."

Musicrypt offers the most user-friendly and content-secure solution we have encountered," said Wojtek Hoch, Director, Digital Media at EMI. Musicrypts focus on ease of use, portability of downloaded music and subscription service access, and protection of content is right on target."

Musicrypts technology can securely enable a variety of revenue models, such as fully portable subscription services, webcast event access, and portable music downloads. Musicrypt can also provide secure content hosting and e-commerce transaction processing.

We are delighted to be working with EMI," said John Heaven, President and CEO of Musicrypt, EMI is widely recognized as a leader in its field and we look forward to working with their team on this cutting edge project."

About Musicrypts Technology
Musicrypts integrated biometric DRM solution, EMTV, eliminates password sharing and cracking, without sacrificing user mobility or privacy. The absence of a download location lockdown makes EMTV the first secure digital music delivery system that enables 100% content portability. EMTV can operate transparently at the consumers main computer station, with biometric log-ins enabling the recognition of valid users at alternate locations. File sharing systems such as Napster can provide legitimate subscription services by using Musicrypts technology.

EMTV utilizes a patented, software-only biometric technology developed by Net Nanny Software International Inc. This unique biometric user authentication system requires no additional hardware to install nor is it intrusive or invasive to use. Net Nannys BioPassword software qualifies users based upon their individual typing rhythms. This affords valid users the ability to transport their downloaded music to other computers and portable devices or to access subscription services from any web location, while protecting the owners rights.

Security for downloadable music is further enhanced by Musicrypts DRM-exclusive agreement with Meganet Corporation of Encino, CA. Meganets technology reinforces Musicrypts DRM application and its music delivery mechanisms with Virtual Matrix Encryption (VME). VME incorporates a multi-layered secure format that employs one million-bit encryption and is not susceptible to brute force attacks or hacks.

About Musicrypt
Toronto-based Musicrypts principal business is enabling online fullfilment for music content providers with its unique technology platform. Musicrypts user-friendly approach maximizes flexibility and security for the customer while ensuring that music content providers are properly compensated for the use of their property.

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.