Destiny Media Technologies, Inc. Announces Telestream FlipFactory Encoding Support for Clipstream.

Business Editors, Hi-Tech Writers

NAB 2002

VANCOUVER, British Columbia & NEVADA CITY, Calif.--(BUSINESS WIRE)--March 15, 2002--Destiny Media Technologies, Inc. (OTCBB:DSNY) and Telestream, Inc. (http://www.telestream.net) are pleased to announce that Telestream has integrated the Clipstream(TM)encoder into their Flipfactory(TM)transcoding automation software.

Designed for high volume encoding needs, processing can take place across one or more multi-processor load-balanced servers. The resulting Clipstream(TM)files are automatically uploaded to the web site, ready for instant viewing by most browsers.

Destiny Channel Manager, John Pillsbury, speaks highly of the relationship with Telestream. "Larger customers need an easy way to encode and upload large volumes of video content to their sites. This relationship exposes Telestream's customers to the benefits of playerless streaming, while providing our customers an automated way to create and upload content."

Telestream and Clipstream combine to provide a fast, affordable creation process that simplifies the task of embedding streaming media content into any web based application, including web pages, emails and banner advertisements. Automated streaming media publishing eliminates the time-consuming, very labor-intensive process of accessing and encoding source media. Application of video and audio processing filters, such as watermarks, cropping and audio adjustments enhance and protect media assets. Automated delivery to the web server eliminates the need for expensive, dedicated server technology. Playerless streaming media technology enables over 90% of web surfers to view the video message without having to rely on external player applications or bulky plug-ins. Media can be streamed even through firewalls.

Telestream and Clipstream make it easy for content creators, owners and businesses to stream compelling video content to viewers without the need for special servers, software or programming knowledge. The combined solution provides labor savings, easy uploading and simple file storage of high-quality Java streaming files.

"The Clipstream encoder provides a solution that many customers are looking for - how to reach the broadest audience without needing to produce content in multiple formats and having to support multiple streaming servers," commented David Heppe, VP of marketing and business development for Telestream. "We're pleased to offer a scalable, automation tool in FlipFactory for customers looking to produce playerless streaming media."

The Telestream(TM) / Clipstream(TM) solution will be highlighted at the National Association of Broadcasters convention in Las Vegas April 6-11 in the LVCC new South Hall at Telestream booth L20658.

About Clipstream (www.clipstream.com)

Destiny Media Technologies, the maker of Clipstream, provides software and services that enable the delivery of a broad range of multimedia content over the Internet and intranets, thereby facilitating the evolution of the Internet into a mass communications and commerce medium. Destiny Media Technologies (DSNY OTC BB) a digital media technology company, has offices in Vancouver, Tokyo, London, and Silicon Valley.

VideoClipstream uses powerful, patent pending compression, decompression, and reproduction processes, that take advantage of the Java platform to deliver high-quality streaming video and audio content of any length. VideoClipstream uses standard, widely available and implemented Internet serving and viewing hardware, software and protocols to present its ultra-small Java applets. Leading companies like www.weather.com, Templeton, GlobeandMail, and Mt. Sinai Hospital, are using Videoclipstream for e-learning, video ad banners, and video-emails because "it just plays".

About Telestream (www.telestream.net)

Telestream products have set the standard with the most demanding media companies in the world for the encoding and delivery of broadcast-quality video and streaming media via IP Networks. Telestream's MPEG appliances and streaming automation software products eliminate today's time consuming, manual process of media acquisition, encoding, transcoding and delivery to servers. Simple, fast and reliable are reasons why CNN, NBC, Warner Bros. and other high profile media companies rely on Telestream technology. - Located in the "video valley" region of Nevada City, California, Telestream is privately held and is funded by Intel, Shaw Venture Partners, Hallador Venture Partners and angel investors.

FlipFactory is a streaming automation software application that simplifies the task of transcoding virtually any digital media source files into virtually any streaming media format at any given bit rate, and then automatically delivers resulting files to destination servers. FlipFactory includes video and audio preprocessing filters to clean and enhance media quality.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.