6th January 2009

YANGAROO Receives Allowance of U.S. Patent

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YANGAROO TorontoYANGAROO Inc., the industry’s leading secure digital media distribution company, is pleased to announce that it has received allowance of its United States Patent Application #10/431,854 titled “Content Distribution System and Method” from the United States Patent and Trademark Office (USPTO). The formal Letters Patent grant is expected to follow shortly.

The patent in the U.S. for “Content Distribution System and Method” covers a method of distributing digital content, such as music and advertising, to selected individuals over the Internet, in which the uploading content provider selects the individuals that are entitled to access the content and sets release conditions, like a time and date, and where the identities of the selected individuals are verified at login and are provided with access to the uploaded content if the release conditions are met.

YANGAROO’S Digital Media Distribution System (DMDS) is the only such system available to the North American record, radio and advertising industries today that has U.S. and Canadian patent protection for all of these crucial features. DMDS is a web-based delivery system that pioneers secure digital file distribution by incorporating biometrics, high-value encryption and watermarking. DMDS replaces the physical distribution of musical recordings and advertising to radio, media, retailers and other authorized recipients with more accountable, effective, and far less costly digital delivery of broadcast quality media via the Internet.

YANGAROO’s DMDS has made over six million deliveries of over 12,000 songs from more than 600 record labels to destinations which include radio stations representing over 35 US broadcast chains. U.S. record labels made 1.3 million deliveries of songs via DMDS in the first nine months of 2008. DMDS is the only system that can digitally deliver music across the U.S., Canada and the UK.

“The allowance of this broad, industry-defining patent confirms YANGAROO as the foremost innovator in its field,” said John Heaven, President and CEO of YANGAROO. “This patent will provide us with a further significant competitive advantage and will add substantial value to our company. The music and advertising industries understand and respect the value of intellectual property and we will continue to lead our sector through innovation and invention. We will maintain our focus on expanding our patent portfolio and plan to vigorously protect our intellectual property rights.”

This U.S. patent will complement YANGAROO’s Canadian patent number 2,407,774 of the same title that was granted in 2005, providing a North America-wide safeguard for the company’s intellectual property. These “Content Distribution System and Method” patents augment YANGAROO’S intellectual property portfolio which includes U.S. patent No. 7,003,670 titled “Biometric Rights Management System”, which is also pending in Canada as patent application number 2,349,797, and pending U.S. patent application No. 11/854,289 titled “Media File Distribution System and Method”.

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