TRIALS EXPANDED TO UNIVERSAL & SONY MUSIC CANADA INDUSTRY RESPONSE TO DMDS OVERWHELMINGLY POSITIVE

Trials of the revolutionary secure digital media file transfer system DMDS continue. Biometrics and encryption combine to foil the music pirates.

(Toronto -- April 2, 2003) Following successful trials at EMI Music Canada and Standard Broadcasting, Musicrypt Inc. has installed its Digital Media Distribution System (DMDS) at the Canadian head offices of Universal Music and Sony Music Canada for internal testing.

       In addition to delivering music from record company to radio station over the Internet, DMDS is being tested by record companies for internal file transfer needs. The system's design allows safe and reliable digital delivery of music files directly from the recording studio to the record label. The files can then be reviewed internally at the record label and subsequently forwarded to designated recipients within the digital realm without compromising pre-release security.

       Recent demonstrations of DMDS to record companies, artists, media and key industry executives have elicited overwhelmingly positive response:

"We had a chance to experiment with the system in 'real time' and the result is fascinating. This system works and it's so easy to use."
                     -- André Lallier, General Manager, Astral Music/Astral Media,                       Quebec's leading radio chain.

"It has been a real time saver. Easy to access, quick to load and a real convenience on the road when access to reps is impossible. DMDS will make it much easier for me to keep updated on the latest releases. Its time has come for sure."
-- Arnie Celsie, Bohn and Associates Media, one of Canada's
    foremost broadcast consultants.        

"I just saw the new technology from Musicrypt. Finally, a tool which can help radio stations and record companies manage new release priorities for the 21st century. Today's music and program directors are stretched for time. They need their music product organized in an easy, portable way. Musicrypt does exactly that...everything a music or program director needs is right there on the
computer. Easy to access. Priorities understood quickly. Audio clips streamed or downloaded securely and fast. Musicrypt saves money, time and effort...
helping radio stations and record companies work better together."
      -- Chris Kennedy, Joint Communications, one of America's              leading broadcast consultants.

.."BIOMETRICS AND ENCRYPTION COMBINE TO FOIL THE MUSIC PIRATES... RECORD LABELS TUNE IN TO BIOMETRIC SECURITY"...
      -- Silicon Valley North, April 2003
         
   Musicrypt's Digital Media Distribution System (DMDS) enables user-friendly and secure distribution of media via the Internet. DMDS is a secure, web-based content delivery system that pioneers secure digital file management by incorporating biometrics. The first application of DMDS replaces the physical distribution of promotional CD's within and from record companies to radio stations with more secure, more effective and less costly digital distribution via the Internet. DMDS delivers broadcast quality media from the sender securely and on time to authorized recipients. DMDS delivers the content person-to-person rather than machine-to-machine. Musicrypt trades on the TSX Venture Exchange (TSX-V) under the symbol MCT.
www.musicrypt.com

Contact: John Heaven, President & CEO, 905 763 3553, jheaven@musicrypt.com,
Peter Diemer, Vice President Sales & Marketing, 604 913 1358, peterdiemer@telus.net.
Media - James Monaco 416 686 3395 or jmonaco@sympatico.ca

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.