RightsMarket Provides Operational Update and Q1 Financials; and Warrant Repricing and Extension.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--April 26, 2001

RightsMarket Inc. (OTCBB:RMKTF) (CDNX:RTS), a leader in content control technology for digital publishing and audio file sharing, today announced its operating results for the first quarter 2001.

As well, the company released information surrounding a number of other events.

Financials:

Gross revenue for the first three months ended March 31, 2001 was $131,385, compared to $38,796 for the same period in 2000. The increase was a result of consulting and license revenues of $74,682 for the first quarter 2001 compared to no consulting and license revenues in the first quarter 2000. Development, administration and marketing-related expenses for the quarter totaled $890,572, resulting in a net loss for the period of $759,187 or ($0.03) per share. This is compared to expenses of $332,192 for the first quarter 2000, and a net loss of ($0.01) per share. The company completed the quarter with $4,002,445 million in cash and cash equivalents.

Warrant Extension and Re-pricing:

RightsMarket also announced that it has received conditional approval from the Canadian Venture Exchange to extend and re-price 3,300,000 warrants, which were due to expire April 28 at a price of $1.85. The new expiry date of the warrants will be January 28, 2002 and are exercisable at a price of $0.50 per share. All other terms and conditions will remain unchanged.

Staffing Optimization:

RightsMarket also announced the reduction of 17 positions effective April 30, resulting in a remaining staff complement of 18 people, which will reduce the monthly burn rate by over $150,000 per month. With the considerable progress that our team has made in the past eighteen months, we believe our RightsPublish product is at the point where we can now significantly reduce our staffing expenditures. The decision to reduce these positions was difficult, however, the market for digital publishing and content control software has been slower to develop than anticipated, said Al Saurette, Chief Executive Officer, RightsMarket Inc. We have streamlined the company to continue operations for more than two years, and to preserve our ability to react to corporate opportunities. It is our hope that increased activity will be opportunity-driven as this market continues to mature over the next few quarters, said Saurette.

Business Development:

RightsMarket has over 20 hosting agreements in place for customers currently using RightsPublish technology. Customers such as Automated Graphics, the Canadian Broadcasting Corporation, Publications Unbound and the OnDisC Alliance will provide continued opportunity for market penetration.

Technological Progress:

RightsMarket is currently in testing stage in advance of the general release of RightsPublish Version 2.1. The most notable achievement in this product release is its ability to support membership and subscription models, which is of considerable value in the association market, and for content providers, such as financial institutions who have defined user communities. Other features include an enhanced reporting service allowing for the dynamic definition of custom reports, and transmission and deployment features. The RightsPublish product has also been constructed in a modular fashion, which may allow marketing of individual components of the product, such as its e-commerce transactional engine, web store functionality and royalty reporting administration features.

Issuance of Shares for Executive Compensation:

In accordance with RightsMarket's ongoing practice of compensating some executives and senior consultants with shares in lieu of cash, the Company wishes to advise that it issued 156,975 shares on January 23, 2001 at a price of $0.40. The shares were issued to EGS Management Consulting Inc., Brass Energy Ltd., Digital Content Management Services and Waterside e-Ventures.

Annual General Meeting:

All shareholders are invited to attend RightsMarket's Annual General Meeting at 3 p.m., local time, Monday, April 30 at The Belvedere, 107 Eighth Avenue SW, Calgary, Alberta. All shareholders and interested parties are encouraged to attend. For the convenience of shareholders who are unable to attend, a recorded CEO's audio and slide presentation will be webcast on the Internet at www.ir-live.com and at www.rightsmarket.com at 5 p.m. (EDT).

About RightsMarket Inc.

RightsMarket Inc. (CDNX: RTS) enables content control in the digital economy with software and Web-based services in digital publishing and secure document distribution utilizing its core digital rights management technology. RightsPublish, the company's primary product, offers a complete solution for e-publishing, e-music and content management for publishers, associations and content owners. RightsPublish automates the persistent protection, sale, management and control of digital content across multiple technology platforms, including PCs and handheld devices and multiple formats including text, audio and html. The company's technology partners include Adobe Systems, Ansyr Technology and Entrust Technologies, and resellers include Automated Graphics, Secure Zen and Fifth Era Knowledge Inc. For more information, visit www.RightsMarket.com.

The Canadian Venture Exchange has neither approved nor disapproved of the information contained herein.