Net Nanny Licenses BioPasswordÆ To Musicrypt.com, Provides Biometric Security For Digital Music Transactions

Musicrypt.com Inc. Announces It Is Developing The Industry's First-Ever User-Friendly Secure Digital Music Download Solution Incorporating Biometrics

15-Jun-00

Musicrypt.com Inc. announced it had signed a licensing agreement with Net Nanny Software International Inc. (CDNX: NNS, OTCBB: NNSWF), leading developers of Internet security software. The exclusive agreement calls for Musicrypt.com to integrate BioPasswordÆ, Net Nanny's patented biometric technology, with digital rights management (DRM) technology. The deal represents Net Nanny's first licensing agreement involving BioPassword.Musicrypt.com plans to integrate BioPassword with digital rights management technology to create a hybrid solution to enable user-friendly responsible online music access. This solution will provide superior intellectual property protection for online music content providers, such as record labels, artists, composers, publishers and distributors. It will also provide users with greater portability for their downloaded music and improved security for their financial information.The ongoing controversy over digital music piracy, e-commerce security and the contested legality of online services such as Napster and MP3.com clearly indicates that the timing is right for the partnership. According to John Heaven, President and CEO of Musicrypt.com, the company decided to integrate BioPassword with a DRM platform to create a unique turnkey solution for the music industry. According to Heaven, digital rights management is not a new concept to the industry, but solutions that incorporate biometrics are.""Licensing BioPassword and integrating it with digital rights management technology will give Musicrypt.com a significant competitive advantage,"" he said. ""With BioPassword we can identify the authorized user of a music property at any computer, enabling users to listen to their music downloads on whatever computer they choose to, be it at home, at the workplace, or at a friend's. Other DRM products lock music downloads to the computer they were downloaded to.""Market Tracking International predicts that online music sales will reach U.S.$3.9 billion by 2004, and rise to 15 to 20 percent of the music market by 2010. Because security is clearly the music industry's main concern, we believe that solutions that integrate user friendly, non-intrusive security technologies, such as BioPassword's keystroke dynamics, will have the clear advantage in this market.""Digital rights management solutions, designed to prevent piracy of digital media by securing content and managing the rights for its access, have never incorporated biometrics before. With emerging standards, increased cost-effectiveness and broader acceptance, biometrics has become a viable option.""The debate about digital music invariably focuses on security and protection, which is why BioPassword makes sense,"" said Mitch Tarr, Net Nanny's Vice President of Strategic Alliances. ""With the Internet emerging as the preferred medium to purchase and download digital content, integrating technologies like BioPassword into Musicrypt.com's DRM solutions represents a significant step toward creating a secure environment that benefits both end user, by physically identifying them, and the provider of digital content, by having a system that ensures they are compensated."" ""Security for digital content online has, in the past, focused on using solutions such as encryption and simple passwords to protect consumer privacy and intellectual property rights,"" said Samir Nanavati, partner at New York City-based International Biometric Group, the leading biometric integration and consulting firm. ""By actually authenticating a user, biometrics will provide the missing link to secure e-commerce transactions."" In exchange for licensing BioPassword, Net Nanny will receive one million common shares of Musicrypt.com stock at a deemed value of U.S.$1.00, and a licensing fee. About BioPassword BioPassword uses Net Nanny's patented keystroke dynamics technology originally designed and developed at Stanford Research Institute. Binding the user to their user name and password through a unique biometric key, BioPassword gives the user ID and password system a layer of user authentication security with a unique keystroke dynamics biometric profile, making compromised passwords useless in the event of a security breach. BioPassword is unique because it is ""software only,"" thus eliminating the need for additional hardware and maintenance associated with other biometric solutions. While the technology's first application is for WindowsÆ NT, it has the potential to be adapted into any password-driven environment where authentication of the user is necessary, such as overall network security, ATMs, and on-line e-commerce environments - anywhere a keyboard or keypad are used. For more information on the technology visit the product site at www.biopassword.com.About Net Nanny Software International Inc. Net Nanny Software International Inc., a publicly traded company with headquarters and subsidiaries in the United States and Canada, specializes in Internet safety and computer security products for both the home and enterprise markets. Its globally recognized flagship product, Net NannyÆ, was the first Internet filtering and child safety software product of its kind to ship, in January 1995. Widely regarded for its open lists and comprehensive features, Net Nanny continues to appeal to domestic and international audiences who appreciate its flexibility. Net Nanny also ships another security-related product, PC Nanny( and is refining an early beta of BioPassword, its patented ""keystroke dynamics"" biometric technology. It is also field-testing an early beta of BioPassword Log On for Windows NT, the first product incorporating the software-only technology. Net Nanny's products address the growing need to secure access to mission-critical computer data, and give users the freedom to choose options consistent with their individual needs and value systems. The company is actively pursuing strategic alliances and other opportunities to leverage its security focus and brand recognition. For more information, contact Net Nanny at www.netnanny.com. About Musicrypt.com Inc.Toronto, Canada-based Musicrypt.com Inc., founded in 1998 by music industry veteran Cliff Hunt and technology investment advisor David Staples, is focused on enabling user-friendly and responsible Internet access to music. Hunt, Chairman of Musicrypt.com, has more than 25 years' experience in the music industry, as both an artist and manager, representing some of Canada's most successful artists, including Triumph, Refugee, Killjoys and Wendy Lands. Staples has been an investment advisor specializing in technology for 16 years and is a keyboard musician and composer. Musicrypt.com's principal business is the provision of an enabling technology platform for user friendly secure downloading of music content over the Internet. Musicrypt.com's unique user-centric approach maximizes flexibility and security for the customer while ensuring that music content providers are properly compensated for the use of their property. For more information contact Musicrypt.com Inc. at www.musicrypt.com.

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