Music Allies Chooses Musicrypt for Vegoose Music Festival Broadcast

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Live performances to be distributed directly from the concert venue to US radio via DMDS.

Musicrypt Inc. (TSX-V: MCT, OTC: MCYPF), the leader in secure digital media distribution, today announced an exclusive agreement with Music Allies, a leading US music industry marketing, consulting, and promotion firm.. Music Allies will be providing backstage broadcast services for the [2006 Vegoose Music Festival, taking place this weekend Oct 27 – 30 at Sam Boyd Stadium in Las Vegas, Nevada. Dozens of radio stations will utilize the Music Allies broadcast studios and Musicrypt’s Digital Media Distribution System (DMDS) to record and transmit exclusive interviews and acoustic performances from such artists as Jamie Lidell, Guster, Jenny Lewis, the String Cheese Incident, G Love and Gomez. Participating radio stations broadcasting from the festival with Music Allies include Dave FM in Atlanta, WXRT in Chicago, WTTS in Indianapolis, KWMT in Tucson, KTHX in Reno, and WBOS in Boston.

Music Allies has chosen Musicrypt’s patented DMDS to provide secure digital distribution of this exclusive live content. DMDS is a web-based delivery system that pioneers secure digital file distribution to radio by incorporating biometrics, high-value encryption and watermarking.

Musicrypt’s 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 Aaron Walton Entertainment, a division of The Omnicom Group.

About Music Allies:

Music Allies, Inc operates out of Asheville NC and has offices in Los Angeles CA, Charlottesville VA, and Cincinnati OH and is a marketing firm that consults to the music and broadcasting industries. This weekend’s broadcasts are part of the marketing and broadcast services Music Allies provides for the Bonnaroo and Vegoose Music Festivals. Music Allies roster of partners include the Brushfire Records, Righteous Babe Records, the Langerado Music Festival, Hard Rock Cafes, Velour Music, Aimee Mann/Superego, Relix Magazine, and Iris Records.

About Vegoose:

Vegoose is a Halloween festival extravaganza that draws inspiration from its Las Vegas location and the spirit of Halloween. In addition to an eclectic group of music performers including Tom Petty and the Heartbreakers, Black Crowes, The Killers, Ben Folds and many more, there are interactive attractions, performance artists, and art installations - including elements of the Las Vegas entertainment and performance community. http://www.vegoose.com

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 radio, 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 http://www.musicrypt.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.

Music Allies Contact:

Sean O’Connell, Music Allies

Tel: 828 252-6300

U.S. PR Contact for Musicrypt Inc.:            

Sarah Miller    

Axis Marketing & PR                    

Tel: 415 764-1980                        

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