Musicrypt Enables Fastest & Highest Value Encryption Available for Music Files

About Musicrypts Technology Musicrypts integrated biometric digital rights management solution, BRM, eliminates password sharing and cracking, without sacrificing user mobility or privacy. The absence of a download location lockdown makes BRM the first secure digital music delivery system that enables 100% content portability. BRM 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.

Musicrypt Enables Fastest & Highest Value Encryption Available for Music Files

TORONTO, CANADA, May 31, 2001 -- Musicrypt Inc. is pleased to announce that it has integrated Meganet Corporation's VME encryption into the Musicrypt biometric digital rights management (BRM) solution.

The benefit of this accomplishment is that, by virtue of VME's fast decrypt algorithm and million-bit key architecture, Musicrypt can now offer its clients unparalleled security for their digital media files while providing a seamless real-time user experience -- even on very large audio or video files.

Since VME executes faster than RSA and other high-value encryption algorithms, the complete file (rather than just parts of it) can be protected from present and future threats. The VME solution is actually a ten-level encryption scheme, of which the million-bit key is but one of its defences.

"We look at it this way," says John Heaven, CEO of Musicrypt, "the music that's sold in digital form today is going to be in the market for years to come. We needed to be able to offer our clients protection for their valuable assets that won't succumb easily to the inevitable increases in computing power. We believe that with the VME technology we offer our customers the fastest and most secure encryption available anywhere."

"When you stop to think," said Michael Vaknin, Executive Vice President of Meganet, "that many financial institutions only employ 128-bit encryption to secure sensitive financial transactions, it may appear excessive to use one-million bits to secure a music file. But its not if you consider the number of years that these files remain in use and the ongoing increases in computer processor speed and parallel computing strategies, you realise that it's only a matter of time before larger-bit keys are cracked," said Vaknin.

The Musicrypt BRM solution utilizes VME encryption and decryption routines for protecting media properties and local user profiles, and for communication between the free client software and the Musicrypt BRM Server.

About Musicrypts Technology
Musicrypts integrated biometric digital rights management solution, BRM, eliminates password sharing and cracking, without sacrificing user mobility or privacy. The absence of a download location lockdown makes BRM the first secure digital music delivery system that enables 100% content portability. BRM 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.

BRM 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 content owners rights.

Security for downloadable music is further enhanced by Musicrypts DRM-exclusive agreement with Meganet Corporation of Encino, CA. Meganets technology reinforces Musicrypts BRM 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 user-friendly and content-secure distribution of music on the Internet with its unique technology platform. Musicrypts user-friendly approach maximizes flexibility and security for the customer while ensuring that music content providers can manage 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.   

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. Meganet at www.meganet.com or call Michael Vaknin, Executive Vice President (818)-990-9292.