Musicrypt Announces Financing

Musicrypt Announces Financing

TORONTO, May 17 /PRNewswire-FirstCall/ -- Musicrypt Inc., (TSX-V:MCT, OTCBB:MCYPF) the industry's leading provider of secure digital media distribution, today announced it has received $682,000 in the course of raising up to $1,500,000 through the sale of up to 7,500,000 Units at $0.20 per Unit. Each Unit consists of one Common Share and one-half of a two-year warrant to purchase a Common Share for $0.30 per share. The funds received to date represent 3,410,000 Units and it is expected the balance of the offering (up to 4,090,000 Units) will be completed within the next ten days.

"We are very pleased at the support from Wellington West Capital and other investors who recognize the progress we have made and the substantial business opportunity we have before us," said John Heaven, President and CEO of Musicrypt. "This funding will provide Musicrypt with resources for our continued rollout in the United States and for the expansion and enforcement of our intellectual property rights."

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 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.

Source: Musicrypt Inc.

CONTACT: John Heaven, President & CEO, Musicrypt Inc., (905) 763-3553

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