Destiny Media Announces First Quarter Results

Destiny Media Announces First Quarter Results

Play MPE(R) Revenue Grows for 13th Consecutive Quarter; 97% Increase Over Prior Year

VANCOUVER, British Columbia, Jan. 14 /PRNewswire-FirstCall/ -- Destiny Media Technologies, Inc. (BULLETIN BOARD: DSNY) , the global standard for the secure distribution of pre-release music to radio and other trusted recipients over the internet is pleased to report record revenues for Q1 which covers the period September 1, 2008 through November 30, 2008. Total revenues grew for the 8th consecutive quarter on the strength of our 13th straight quarter of growing Play MPE(R) access fee revenues. Overall revenues grew by 55% over the previous year on the strength of a 97% increase in Play MPE(R) revenues over the previous year.

"We continue to realize greater efficiencies and our increased revenues come at a time when the company has realized its fourth straight quarter of declining expenditures," comments company CFO, Fred Vandenberg.

"Cash used in operations shrank by 98% to $13,008, virtually eliminating our net usage of cash. Both our net cash and net working capital position improved during the quarter and we expect to see these trends continue. Our expansion into Europe and Australia is just beginning to influence revenue and we anticipate a more significant impact and improvement to our cash flow to be realized over the coming months."

CONSOLIDATED STATEMENT OF OPERATIONS
(Expressed in United States dollars)
Unaudited

Three Months Three Months
Ended Ended
November 30, November 30,
2008 2007
$ $

Revenue 554,561 356,648

Operating expenses
General and administrative 182,384 318,886
Sales and marketing 254,920 485,794
Research and development 224,835 378,173
Amortization 7,937 9,801
670,076 1,192,654
Loss from operations (115,515) (836,006)
Other income (expenses)
Other income 32,137 18,188
Interest income 791 10,266
Interest and other expense (956) (4,048)
Net loss for the period (83,543) (811,600)

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

Weighted average common shares
outstanding, basic and diluted 50,153,357 49,942,462

About Destiny Media Technologies, Inc.

Destiny (http://www.dsny.com/) is a software development company which provides tools that some of the world's largest media companies use to distribute their content on the Internet. Products include: the Play MPE(R) secure distribution system (http://www.plaympe.com/), the Podds(TM) digital music store (http://www.podds.ca/), Clipstream(R) (http://www.clipstream.com/) instant play streaming media, Clipstream IP-TV (http://live.clipstream.com/) and Radio Destiny(TM) internet radio software (http://www.pirateradio.com/).

Company Contact:
Fred Vandenberg
CFO Destiny Media Technologies, Inc.
604 609 7736 x236
fredv@dsny.com

Safe Harbor Statement:

"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.

Source: Destiny Media Technologies, Inc.

CONTACT: Fred Vandenberg, CFO of Destiny Media Technologies, Inc.,
+1-604-609-7736, ext. 236, fredv@dsny.com

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

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