Nickelback Single Delivered Exclusively by Musicrypt's DMDS Across North America

Roadrunner Records in the U.S. and EMI Music Canada Choose Musicrypt's DMDS to Securely Deliver Highly Anticipated Single "Photograph"

Musicrypt Inc. (TSX-V: MCT) (OTC: MCYPF), the industry's leading digital music distribution company, today announced Roadrunner Records in the U.S. and EMI Music Canada will exclusively use Musicrypt's Digital Media Distribution System (DMDS) to securely deliver the highly anticipated single "Photograph" from the multi-platinum, international superstar band Nickelback to radio and other destinations across North America.

On July 27th, at precisely 6 AM ET, a 20-second promo of the song was made available for immediate preview and download to selected radio stations across North America. The full song was made available for preview and download at exactly 7 AM ET, on August 3rd, 2005. Two separate file types were sent to broadcasters giving them the choice of file format and quality they wish to use. At their discretion, registered and selected DMDS users will be able to download a watermarked uncompressed linear file, or a broadcast quality file. The full linear file will allow all HD (High Definition) and Satellite Broadcasters to deliver the highest quality audio file to their listeners instantly. The watermarking DMDS provides will maintain individual user accountability for the track to Nickelback, Roadrunner and EMI.

"We're extremely pleased to move forward into the digital delivery world to radio with Musicrypt's DMDS. Not only are we delivering the files directly to radio programmers simultaneously across the United States, but we have now registered our entire Promotion staff and have been able to circulate this great new music in the most secure environment possible in advance of the release," said Dave Loncao, Senior Vice President Promotion, Roadrunner Records. "We believe this will give us the flexibility to move quickly and efficiently in a manner that we have never been able to do before. Also, because of the portability of this Web-based system, all of our staff and broadcast partners can access this track from wherever they happen to be at the moment we deliver it."

On March 1, 2005, DMDS was endorsed by Clear Channel Radio, America's largest radio chain with over 110 million weekly listeners. On March 29, 2005, DMDS was endorsed by XM Satellite Radio, the number one satellite network in America, and on June 21, 2005, Musicrypt announced a strategic alliance with Nielsen BDS, the leading supplier of terrestrial, satellite and digital radio song performance data. Musicrypt's Digital Media Distribution System (DMDS) is rapidly gaining acceptance at radio stations throughout the U.S. and is currently installed at stations representing 35 broadcast chains in the United States, including Clear Channel Radio, Infinity Broadcasting, Cox Radio, Cumulus, Citadel Communications, Emmis Communications, DMS, NPR, Next Media, Rocket City Broadcasting, Sinclair Communications, XM Satellite Radio and Sirius.

"It was over two years ago, (August 1, 2003), that we delivered Nickelback's chart-breaking hit 'Someday' via DMDS to radio across Canada," said Derrick Ross, Vice President, National Promotion, EMI Music Canada. "Since then, we have delivered almost every Nickelback single to radio in this country exclusively via DMDS. DMDS is now the standard way of delivering music securely and simultaneously to broadcasters and this is how they'll be receiving this great new track from Nickelback."

Major Canadian broadcast chains representing 100% of all 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. Musicrypt's DMDS is currently used by over 85% of the Canadian music industry, including all of the four major labels.

DMDS has now delivered over 1,100 tracks to over 450,000 destinations clearly making it the dominant, secure digital delivery system in North America.

"We are honored to be entrusted to deliver this highly anticipated new release from Nickelback directly to their label teams and broadcast partners across North America," said Peter Diemer, Vice President, Marketing & Sales for Musicrypt. "It's great to be making history together with everyone involved in this fabulous project. It's even better when you realize what a huge hit this is going to be for Nickelback."

About Roadrunner Records:

Roadrunner Records, Inc. was launched in Holland in 1980 and has grown to be one of the largest international independent labels in the music business. In 1986 Roadrunner opened its U.S. headquarters in New York City and has offices in England, Germany, France, Japan and Australia. In 2001, Roadrunner entered into a partnership with Island Def Jam for distribution in many territories through Universal Music & Video Distribution (UMVD). The label is enjoying more success and market dominance than ever. In 2004, Roadrunner received a record five Grammy Award nominations, including a staggering 3 out of 5 nominations in the Metal Performance category. 2005 marks the label's Silver Anniversary. www.roadrunnerrecords.com

About EMI Music Canada:

EMI Music Canada is a unit of EMI Music and one of the "big four" record companies. EMI Music Canada was founded in 1949 and it's world-famous labels include Virgin, Capitol, Angel, Blue Note, Manhattan and Parlophone. The current roster features many important local and international artists, including some of the biggest names in the recorded music industry, including Beastie Boys, Radiohead, Coldplay, Gorillaz, Janet Jackson, Norah Jones, Paul McCartney, and Nickelback.

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 (OTC: 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.

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