Destiny Media Technologies to Receive US Patent for Digital Media Distribution System

MPE® Digital Media Distribution System to be Protected Globally

VANCOUVER, British Columbia, October 6, 2008 -- Destiny Media Technologies (OTCBB- DSNY), the global leader in the secure distribution of pre-release music to radio and provider of instant play streaming media, is pleased to announce that the United States Patent & Trademark Office has issued a 'Notice of Allowance' for Destiny's  'Digital Media Distribution Method and System' patent application (USPTO Publication No. 20020146122).

Destiny's digital distribution claims are also protected internationally by its PCT application published on September 7, 2001 (WIPO Publication No. WO 01/65796) under the World Intellectual Property Organization ("WIPO").

Steve Vestergaard, Destiny CEO comments, "We first developed MPE® in early 1999 and presented it at the Consumer Electronics Show that year.  In 2000, we were invited by the music industry to bring the technology to the Secure Digital Music Initiative.  We have been providing secure media distribution technologies longer than any existing provider of pre-release distribution services, so we appreciate the formal recognition of the early priority of our intellectual property.  When granted, this patent will have a foreign priority date of March 3, 2000.

We expect a formal patent grant within approximately four months of the issuance of this 'Notice of Allowance'.  We are pleased we will be able to provide solid global intellectual property protection to our MPE® customers around the world.  We are currently expanding into new markets including Canada, Europe, Asia, Latin America, Australia and New Zealand."

Destiny has also filed for a second patent for its innovative watermarking technology, Methods For Watermarking Media Data (USPTO Publication No. 20080098022).  This second patent application was published in April, 2008 and is currently in front of a USPTO examiner for consideration.  These two technologies provide the core security for the Play MPE™ system which is used to securely distribute songs, music videos, radio shows, digital promos. and other content from artists represented by the world's largest record labels including: Universal Music Group, Warner Music Group, EMI, Sony BMG and numerous independent record labels to radio and music reviewers across the globe.

"We are very pleased  to provide our customers with the confidence to use the digital media distribution system that they prefer, globally, under the protection of broad patent claims." said Fred Vandenberg, CFO Destiny Media.  "This patent will add substantial value to Destiny's intellectual property portfolio, providing us with another significant competitive advantage."

When granted, Destiny will be in a position to take legal action against any third party that infringes on Destiny's claims in the United States.  In other jurisdictions, the publication of Destiny's corresponding PCT application provides evidence that Destiny's claims are prior art over similar patents and patent applications having effective filing dates in the last seven years. 

Destiny's "Digital Media Distribution Method and System" international PCT application provides additional comfort to Canadian customers because of the earlier PCT publication date.  In the past, our Canadian customers have been harassed by a Canadian competitor with a Canadian patent with a priority date (July 16, 2002) subsequent to the PCT publication date (September 7, 2001).   

Destiny has two outstanding lawsuits which were filed to protect those Canadian Play MPE™ customers and provide them the confidence to use the system which is clearly preferred by the industry.  The first action (Canadian Federal Court File No. T-413-06) against Yangaroo (YOO-TSX, YOOIF-OTO) seeks an invalidation of their patent (priority October 2002) and the second action (Ontario Superior Court File No. 07-CV-38068) seeks CDN$25,000,000 in damages from Yangaroo and two of their officers for defamation and injurious falsehood, breaches of the Trade-marks Act and Competition Act and interfering with Destiny's economic interests. 

Dean Ernst, VP MPE Operations commented, "In the U.S., three major record labels use Play MPE™ commercially and company wide and contracts are in place with sublabels of the fourth. Paid agreements representing over one hundred major independent labels have been signed in the last year alone.  In addition, three major labels have gone to contract in northern Europe.  Trials are taking place in Canada, Europe, Latin America and with our partner in Australia and New Zealand.  With this global intellectual property protection finally in place, it is becoming clear to the industry that Play MPE™ will be the global standard for distributing pre-release music through the internet."

About Destiny Media Technologies

Destiny ( 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 Play MPE®, Clipstream® and Radio Destiny™.

Company Contact:
Steve Vestergaard CEO Destiny Media Technologies, Inc. 604 609 7736 x222
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.

Keith Loh