Gerd Leonhard Joins Musicrypt to Lead European Growth

Toronto, Canada January 8 2004--Musicrypt has appointed Gerd Leonhard as Vice President, European Development. Mr. Leonhard is based in Basel, Switzerland.

Leonhard is a well-known digital music & entertainment expert, entrepreneur and executive. He was the founder, President and CEO of LicenseMusic.com, Inc, the leading web-based music licensing company headquartered in San Francisco, providing quality repertoire to professionals working in film, television, advertising, interactive and audio-visual industries worldwide.

He is also founder and President of DMO/The Digital Marketing Organization and the Music-Entrepreneurs Network and co-author of the upcoming 'The Future of Music' (Berklee Press). Leonhard has been a featured speaker at industry events including Webnoize, MIDEM, MILIA, Streaming Media Europe, DDMI/Digital Distribution of Music Conference and has lectured at leading schools including UC Berkeley, University of Colorado, Westminster University, London and Berklee College of Music.

He has been an Expert Adviser to the European Commission in Brussels / Belgium and a senior consultant with Rightscom Ltd., of London. In 1987, Mr. Leonhard earned a diploma in Performance from Boston's Berklee College of Music after winning the prestigious Quincy Jones Award for arranging and composing.

"Gerd's background is ideally matched for our business. As an expert in the field of digital music technology and B2B commerce he is an outstanding addition to our team. His experience will be invaluable to Musicrypt's global expansion," said John Heaven, President and CEO of Musicrypt.

"Musicrypt's DMDS is a simple, effective and powerful solution for the business-to-business content delivery needs of the music and media industries. Both the European record business as well as the radio industry will benefit greatly from this technology and I look forward to bringing this innovation to Europe," added Gerd Leonhard.    

Musicrypt's Digital Media Distribution System (DMDS) enables secure distribution of media via the Internet. The DMDS web-based content delivery system pioneers secure digital file distribution by incorporating biometrics. 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 via the Internet. DMDS delivers broadcast quality media from the sender, securely and on time to authorized recipients. Musicrypt trades on the TSX Venture Exchange (TSX-V) under the symbol MCT. www.musicrypt.com. Contact: Gerd Leonhard, Vice President European Development. Phone: + 41 61 701 8884 gerd@musicrypt.com, www.gerdleonhard.com

Media - James Monaco 416 686 3395 or jmonaco@sympatico.ca

The statements in this release that are not purely historical are forward-looking statements subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.




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