Musicrypt and Adstream Join Forces for Global Market

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Musicrypt signs exclusive partnership with AdStream to deliver music globally via Musicrypt's DMDS to the UK, Continental Europe and Australia.

We believe DMDS will be the best choice for our customers and provide a substantial additional revenue opportunity for us.

Musicrypt Inc. (TSX-V: MCT, OTC: MCYPF), the leader in secure digital media distribution, today announced the signing of an agreement with London based Adstream Ltd. ( to market Musicrypt's Digital Media Distribution System (DMDS) in the UK, Europe and Australia.

Adstream is the leading provider of digital asset management and distribution services for the global advertising market, serving over 5,000 companies in 42 countries supported through 10 regional offices in the UK, USA, Singapore, India, Australia, South Africa, Malaysia, New Zealand, Ireland, and Germany.

Musicrypt will bring its patented industry-leading Digital Media Distribution System (DMDS) technology to the partnership. Adstream will provide its marketing team and customer base to market and support DMDS, initially to the music industry in the UK then on to continental Europe and Australia.

"We looked at various competing technologies available to offer to our existing radio and music industry clients and chose Musicrypt's DMDS, because of its sector-leading features, ease of use and security advantages", said Andy Hopkinson, Managing Director of Adstream UK. "We believe DMDS will be the best choice for our customers and provide a substantial additional revenue opportunity for us."

"This partnership with Adstream is designed to expand our market beyond the US and Canada, to include the UK, Europe and Australia, a market equal or greater in size to that of North America", said John Heaven, President and CEO of Musicrypt. "The exclusive three year renewable agreement will multiply our revenue through Adstream's highly regarded and established presence in these markets. Overall we expect to surpass expectations."

In the US, the number of deliveries made by Musicrypt's DMDS in the third quarter of 2006 was quadruple those in the first quarter. DMDS has delivered over 5,000 songs from more than 150 record labels to destinations which include radio stations representing over 35 US broadcast chains such as CBS/Infinity, Citadel, Clear Channel, Cox, Cumulus, Emmis, EntreVision, Entercom, Federated Media, Sirius, Journal, DMX, Jones Radio, AOL, Music Choice, Radio One, Salem Communications, Univision, Westwood One, Regent, Premiere Radio, Next Media, XM Satellite Radio, Waitt Media and many others. DMDS is the only digital delivery system that can deliver music throughout the US and Canada.

Musicrypt is partnered in the US with Billboard, R&R and Nielsen BDS, and is marketed to the advertising industry by AWE, a division of The Omnicom Group.

About Adstream:

Adstream, headquartered in London England, provides digital asset management and distribution services to the global advertising community. Initially, Adstream focused on the post production editing, management and distribution of Television and Radio commercials. In March 2006 Adstream acquired Quickcut, the leading global provider of print advertising editing and distribution services, for $35 million dollars. Major shareholders of Adstream include: Telstra (AUS $40 billion dollar telecommunications company), Paul Ramsay Holdings (owner of Prime TV, the largest regional television operator in Australia, and the largest private hospital network in Australia), Publicitas (Swiss publishing and media group with revenue over SWF 2 billion), and Andy McKelvey (digital media entrepreneur, founder and majority shareholder of and TMP Worldwide).

About Musicrypt Inc.:

Musicrypt's patented Digital Media Distribution System (DMDS) is the leading secure B2B digital delivery solution for the music industry. 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 broadcasters, 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 visit

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.

PR Contact for Musicrypt Inc.:            

Sarah Miller    

Axis Marketing & PR                    

Tel: 323 653-7800                        

Contact for Adstream:

James Carpenter, Chief Operating Officer

Tel: 44 7920 597 607

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