Destiny Media Reports Q1 Financial Results

Destiny Media Reports Q1 Financial Results

VANCOUVER, British Columbia, Jan. 22 /PRNewswire-FirstCall/ -- Destiny Media (BULLETIN BOARD: DSNY) is pleased to announce results for the quarter ending November 2006.

Destiny is a market leader in providing software for "streaming" and "secure distribution" of digital media content, such as music or videos. Streaming is analogous to radio or TV and secure digital distribution is similar to distributing music CD's or DVD's.

Two new streaming products are due in Q2: A major upgrade of Clipstream, featuring 30 frames per second and full screen video and a high quality social network based around Radio Destiny and Clipstream Live Video.

Promo Only MPE, a secure distribution product in use by major record labels to move pre-release music to radio stations and other trusted recipients is expected to start generating transaction based revenues in Q2 as labels begin phasing out physical CD's. Since launch, 33,500 tracks have been sent through the system representing over 30 million track sends.

Q1 Highlights:

-- Launch of online music store software and PODDS store aimed at DJ and
jukebox customers
-- Version 3.0 of Promo Only MPE for both Mac and PC, includes support for
music videos
-- Significant partnerships and articles in the market research vertical
-- A provisional patent on proprietary watermarking technology was filed.
The full patent application will be filed in Q2.

Comments Destiny CEO, Steve Vestergaard, "We've focused on R&D this quarter to get new versions of our products ready for launch. We released two media distribution products in Q1 and will be releasing two streaming products in Q2.

The pieces are in place for a great 2007. Customers are waiting for the new version of Clipstream and Radio Destiny and Promo Only MPE transaction revenue should start ramping next month."

Condensed Financial highlights:

Three Months Three Months
Ended Ended
November 30, November 30,
2006 2005
$ $

Revenue 167,581 182,017

Operating expenses
General and administrative 111,202 105,641
Sales and marketing [note 1] 243,618 82,202
Research and development 112,617 89,513
Amortization 13,296 12,735

480,733 290,091

Loss from operations (313,152) (108,074)
Other expenses
Interest and other expense (3,378) (7,062)

Net loss (316,530) (115,136)

Net loss per common share, basic and diluted (0.01) (0.00)

Weighted average common shares outstanding,
basic and diluted 41,936,223 36,501,915

Notes:

1. Sales and marketing includes in excess of $137,000 in non cash stock compensation which vested during the quarter.

About Destiny Media Technologies

Destiny Media Technologies, Inc. ( http://www.dsny.com/ ) is a leader in developing easy-to-use tools for distributing media through the internet. The company's suite of streaming and downloadable products includes: Clipstream (TM), Destiny Media Player (TM), Radio Destiny (TM), and MPE (TM). Established in 1991, the company is headquartered in Vancouver, Canada.

"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.

Media Contact:
Steve Vestergaard
CEO Destiny Media Technologies, Inc.
Email: steve@dsny.com
Phone: 604-609-7736 (ext. 222)
Fax: 604-609-0611

Source: Destiny Media Technologies, Inc.

CONTACT: Steve Vestergaard, CEO, Destiny Media Technologies, Inc.,
+1-604-609-7736, ext. 222, or fax, +1-604-609-0611, or steve@dsny.com

Web site: http://www.dsny.com/

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