Destiny Media Technologies, Inc. Backgrounder

Vancouver based Destiny Software Productions, Inc. is a Canadian company founded in 1991 to develop entertainment software for video game publishing companies. In 1995, Destiny developed RadioDestiny™, the first internet radio system. Clipstream™ is a streaming technology based on the evolution of the RadioDestiny™ codecs developed in 1995.

Video on the internet can be either downloadable or streaming. Downloadable content, such as MPEG's, must be downloaded completely before playback. Streaming content begins to play instantly. Most streaming content is currently encoded in Quicktime™, Real Media™ or Windows Media™ formats. Clipstream™ is a Java™ based alternative to these player based solutions. Because Clipstream ™ is based on standard HTTP web infrastructure, it offers a number of compelling advantages.

The technology has been strongly embraced by the advertising industry. Because it is instant and requires no action by the consumer, it is very appropriate as a replacement for banner ads. Advertisers can move existing television commercials directly to the web in an unobtrusive manner. Destiny and its resellers are projecting over four billion impressions in the Clipstream™ format in the next twelve months as the industry moves from static banner ads and pop up windows to streaming video commercials.

The movie industry is also seeing the value of Clipstream™. In July, over twenty million impressions of major movie trailers were shown in the Clipstream™ format. Clipstream™ is becoming the standard for movie trailers for sites such as MyBC, MyAlberta and MyTo which offer consumers movie schedules.

For large corporate intranets, Clipstream ™ offers a much higher quality of service with an obvious cost savings as large server farms and associated staff can be eliminated.

The company began selling Clipstream™ as a product in January 2001 and since then has built a network of approximately five hundred customers and one hundred resellers. Major distributors have been established in Germany, London, New York and Tokyo. Other products developed by Destiny include the Destiny Media Player™ (a full featured MP3 player), RadioDestiny™ (internet radio broadcast software) and MPE™ (a secure digital rights management system which is compatible with Napster™ and other file sharing networks, but which ensures the content is paid for).

For more information contact:

Destiny Media Technologies, Inc.
Steve Vestergaard
President & CEO
Destiny Media Technologies, Inc.
604-609-7736 ext. 222


Keith Loh