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Label News (more headlines) 10-18-2004

V2 RECORDS NEXT CUSTOMER FOR MUSICRYPT

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Email: jmonaco@sympatico.ca
Website: http://www.musicrypt.com
Musicrypt Inc. is pleased to announce that it has reached agreement with Sir Richard Branson's V2 Records in Canada for use of Musicrypt's Digital Media Distribution System (DMDS). V2 Records is the first of the "Major Independent Labels" to sign on as a customer for DMDS. Musicrypt expects to begin testing with V2 Records in London England later this month.

With EMI Music, Warner Music, BMG Music, and Universal Music also using DMDS, it is now the secure digital delivery service of choice for more than 85% of the Canadian music industry. Major Canadian broadcast chains representing 100% of all chart monitored radio stations now use DMDS, including Standard Radio and Rogers Media Broadcasting on an exclusive basis.

Sid McCain, Director Marketing & Operations of V2 Records Canada, said, "The speed, lower cost and improved security DMDS provides for delivery of new releases to radio, and for internal distribution, will be of great benefit to V2. As an international independent label, it is vital that we provide service for our artists that is comparable to the major labels but with fewer resources, and DMDS enables us to do that efficiently and effectively."

John Heaven, President and CEO of Musicrypt said: "We are very pleased to have V2 Records sign up for our DMDS service. We anticipate that they will be the first of several customers from the "Major Indie" segment of the music business. V2 represents several significant artists and it is important that they be able to deliver their music in a secure and efficient manner like the major labels. Usage of DMDS is growing rapidly, as shown in September when we made over 36,000 deliveries."

V2 Records is an independent label launched in 1997 by entrepreneur Sir Richard Branson, the founder of the very successful Virgin label. The company is committed to developing a formidable roster of new and established musical talent. V2's artists include White Stripes, Moby, Underworld, Stereophonics, The Datsuns, Mercury Rev, Grandaddy, Katy Rose, The Crystal Method and Josh Ritter.

Musicrypt's 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. The first application of DMDS replaces the physical distribution of new musical recordings by record companies from the studio, internally, and to radio stations with more secure, more effective and less costly digital distribution of broadcast quality media via the Internet. Musicrypt trades on the TSX Venture Exchange (TSX-V) under the symbol MCT. Visit www.musicrypt.com

Contacts:
Musicrypt Inc. - John Heaven, President & CEO, 905-763-3553, Suite 300, 225 East Beaver Creek Road, Richmond Hill, Ontario, Canada L4B 3P4

V2 Records - Sid McCain, Director Marketing & Operations, 416-542-1400, 317 Adelaide Street West, Suite 1004, Toronto, Ontario, Canada, M5V 1P9

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. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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