DMDS Hybrid Technology To Enable The Fastest Secure Digital Delivery Of TV Spots & Music Videos

Toronto, Canada, February 28, 2007 -- Musicrypt Inc. (TSX-V: MCT, OTC: MCYPF), the leader in secure digital media distribution, and Pando Networks, Inc., today announced they have entered into a licensing agreement extending and expanding their relationship following a very successful pilot program. Musicrypt proved the concept of integrating Pando's unique technology with Musicrypt's patented Digital Media Distribution System (DMDS) in order to provide the fastest and most secure delivery of large digital content such as television commercials, music videos and audio files via the Internet.

Incorporation of Pando Networks' innovative peer-to-peer architecture within DMDS will enable the secure digital delivery of full broadcast-quality music videos and television commercials via the Internet with the fastest downloads available to the music and advertising industries. Currently, large files like these are primarily delivered on DVD, Beta tape, or by satellite, which are comparatively inefficient, insecure, slow and expensive.



"Integrating Pando with Musicrypt's DMDS means the end user will now be able download video and audio files in record time, while providing unsurpassed accountability to the content provider," said Robert Levitan, CEo of Pando Networks. "With our combined force, Musicrypt continues to be at the forefront of secure digital media distribution."

Musicrypt's patented DMDS has delivered over 7,000 different songs from more than 150 record labels to destinations which include radio stations representing over 35 U.S. broadcast chains such as CBS/Infinity, Citadel, Clear Channel, Cox, Cumulus, Emmis, EntreVision, Entercom, Federated Media, Sirius, Journal, DMX, Jones Radio, AOL, Music Choice, Radio One, Salem Communications, Univision, Westwood One, Regent, Premiere Radio, Next Media, XM Satellite Radio, Waitt Media and many others.



"This latest innovation incorporating Pando's unique technology illustrates the flexibility of our DMDS platform," said John Heaven, President and CEO of Musicrypt. "The hybrid technology will provide the fastest, most efficient, reliable and secure delivery of TV commercials, music videos and audio files available to the advertising and music industries today."



Musicrypt is partnered in the U.S. with Billboard, R&R and Nielsen BDS; in the UK, Europe and Australia with Adstream Ltd; and is marketed to the U.S. advertising industry by AWE, a division of Omnicom, and The Gary Group. DMDS is the only digital delivery system that can deliver music throughout the U.S., Canada and the UK.

About Pando Networks, Inc.

Pando Networks is a privately held company that provides transport for large media files. Pando offers a free, simple to use consumer application with underlying peer-to-peer network architecture. Based in New York, Pando Networks is led by CEO Robert Levitan, co-founder of iVillage. The Company is funded by Intel Capital, BRM Capital and Wheatley Partners. For more information or to start using Pando immediately, please log on to Pando.com.



About Musicrypt Inc.:

Musicrypt's patented Digital Media Distribution System (DMDS) is essentially an "electronic Brinks truck". 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. DMDS replaces the physical distribution of musical recordings and advertising to radio, media, retailers and other authorized recipients with more accountable, effective and far less costly digital delivery 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 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 has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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