Clear Channel Radio Endorses Musicrypt's DMDS.

TORONTO -- Industry Leading Digital Distribution Company Installs Clear Channel Radio Stations

Musicrypt Inc., (TSX VENTURE:MCT)(OTCBB:MCYPF) the industry's leading developer of user-friendly and secure media distribution, today announced it has received the endorsement of Clear Channel Radio, the largest radio broadcaster in North America, with over 1200 radio stations in the United States. Musicrypt's patented Digital Media Distribution System (DMDS) is an easy to use, web-based system that requires no expensive software or hardware. DMDS delivers music simultaneously to all intended destinations and is available 24/7. Its advanced technology allows record labels and broadcasters to control the delivery, receipt and use of their music.

"We recognize that Music Labels need an efficient, but secure way to distribute music to our programmers," said Jeff Littlejohn, Executive Vice President, Distribution Development for Clear Channel Radio. "Musicrypt's DMDS interfaces easily with our internal systems, so our stations can be assured of receiving the highest quality of audio as soon as it becomes available."

In December, 2004 Musicrypt entered an exclusive partnership with Billboard Radio Monitor to market and promote DMDS in America following an extremely successful year in Canada. Musicrypt's Digital Media Distribution System (DMDS) is the premier digital music distribution system in the industry. DMDS is currently used by over 85% of the Canadian music industry, which includes leading record labels such as, EMI Music, Sony BMG Music, Universal Music and Warner Music. Major Canadian broadcast chains representing 100% of all electronically chart monitored radio stations now use DMDS, including Canada's three largest broadcasters - Corus Radio, Rogers Media Broadcasting and Standard Radio on an exclusive basis.

"We are extremely pleased to announce this major milestone for Musicrypt with Clear Channel Radio. Musicrypt will now provide Clear Channel Radio the preeminent method for its Radio Programmers to preview, download and access music for airplay and review, " said Peter Diemer, Vice President, Marketing & Sales for Musicrypt, Inc. "Our web-based solution gives individual Programmers and Content Providers secure access from computers around the world, giving them the flexibility to operate in a mobile working environment."

With the music industry revenues exceeding $30 Billion today, Musicrypt has worked closely with its customers to develop user-friendly technology that securely delivers broadcast quality music to its recipients. Musicrypt has completed over a quarter of a million secure deliveries to date with today's hottest music chart toppers such as U2, Usher, Norah Jones, Shania Twain, Britney Spears, 3 Doors Down, Avril Lavigne, Alicia Keys, Nickelback, Christina Aguilera, Coldplay, Dido, Evanescence, Green Day, Gwen Stefani, K-OS, Hoobastank, Jet, Jimmy Eat World, Maroon 5, Robbie Williams, Sarah McLachlan, R.Kelly, Seal, SUM 41, Sting, The White Stripes, Tim McGraw and hundreds of others.

About Clear Channel Radio

Clear Channel Radio is a leading radio company focused on serving local communities across the U.S. with more than 110 million listeners choosing Clear Channel Radio programming each week. The company's operations include radio broadcasting, syndication and independent media representation. Clear Channel Radio is a division of Clear Channel Communications, Inc. (NYSE:CCU), a leading global media and entertainment company.

About Musicrypt:

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. 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 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.

Musicrypt Inc. (TSX VENTURE:MCT) (OTC Bulletin Board:MCYPF)