Destiny Announces Adoption of MPE For Max Fire Digital Jukebox.

VANCOUVER, British Columbia -- Destiny Media Technologies, Inc. (OTCBB:DSNY)(Berlin:DME 935 410) is pleased to announce that SML Entertainment, western Canada's largest supplier of home and retail entertainment products has signed an exclusive deal to market the MAX FIRE digital jukebox and video system in Canada, Mexico and South America.

The European manufactured MAX FIRE is a digital wall-mounted jukebox that plays MPE(TM) encrypted music and music videos. (MPE(TM) is the new standard in secure media distribution systems.) The innovative bill and coin-operated system makes it ideally suited to retail operations such as pubs, sports bars, and coin operated pool halls.

"A unique feature of the MAX FIRE is that its digitally encrypted music and video files can't be copied using the MPE(TM) technology," says Dean Fisher, SML's Marketing Director. "MAX FIRE has the capability to play 4,000 music videos and approximately 50,000 music titles. However, we anticipate that most establishments will use only about 1,000 titles. What makes MAX FIRE special is that SML and Promo Only customize the music and video selections for each retail outlet, updating them regularly through electronic downloads."

MAX FIRE's music and music videos are supplied to SML through Promo Only, the world's largest content supplier of subscriber-based music and music videos. Promo Only is licensed to make reproductions of sound recordings and music videos through Audio-Video Licensing Agency Inc. (AVLA). Promo Only has offices in Calgary, Alberta and Kitchener, Ontario. Its US-based operation has offices in Los Angeles, New York City and Orlando.

"SML's MAX FIRE is the only digital jukebox and video system using the MPE(TM) technology in Canada," explains Dean Ernst, President of Promo Only Canada. "MPE(TM) technology is the first audio and video encryption system that combines both a small file size with CD quality audio and broadcast quality video."

Ernst added: "The proprietary MPE(TM) technology from Vancouver-based Destiny Media Technologies, enables companies like SML Entertainment to securely move digital audio and video content from computer to juke box through the internet. MPE(TM) uses a unique digital fingerprint and watermark system that ensures authorized use and payment."

Ernst also explained that AVLA is the licensing agent of all the major record companies in Canada and many independent labels, artists and producers. AVLA's members own or control the copyright of more than 95% of all musical audio recordings and music videos produced and/or distributed in Canada.

"Anyone who copies sound recordings or copies or exhibits music videos in Canada needs a licence from the AVLA or authorization from the owner or holder of the copyright," says Ernst.

SML currently is testing marketing the MAX FIRE and expects to officially launch it in the next month.

"Our research indicates that there is a strong market for MAX FIRE in western Canada," says Fisher. "Our goal is to have 200 MAX FIRE locations by the end of 2005."

About SML Entertainment

Calgary-based SML Entertainment operates Canada's largest pool leagues and hosts the country's biggest pool tournaments. The company is recognized as western Canada's premier supplier of entertainment products. Through its 13 offices in B.C., Alberta, Saskatchewan and Mexico, SML provides a variety of entertainment products that include pool accessories, air hockey games, foosball games, coin operated pool tables and games, arcade machines, pinball machines, jukeboxes, home pool tables, shuffle boards and games room furniture.

About Promo Only

With offices in Orlando, New York, Los Angeles, Calgary, Chicago and London, Promo Only (http://www.promoonly.com) is the world's leader in promotional subscription-based music and music video services. Promo Only offers a complete line of music on CD and music video on DVD designed to meet the needs of music professionals, business owners and retail operations. Promo Only was founded in 1992 by Jim Robinson and Pete Werner.

About Destiny

Destiny Media Technologies, Inc. (http://www.dsny.com) is a leader in developing easy-to-use tools for distributing digital media through the Internet. The company's suite of streaming and downloadable products includes: Clipstream(TM), Destiny Media Player (TM), Radio Destiny (TM) and MPE (TM). Established in 1991, the operating company is headquartered in Vancouver, Canada.

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