TTR Technologies, Inc. Announces MusicGuardTM, Groundbreaking New CD Anti-Piracy System Warlock Records and Strictly Rhythm Music First To Sign On

Business Wire, Sept 29, 1999

NEW YORK--(BUSINESS WIRE)--September 29, 1999--

The following is a correction to the Press Release of

Friday September 24, 1999

TTR Technologies, Inc. (OTC BB: TTRE) launched MusicGuardTM with the announcement today that Warlock Records, Inc. and Strictly Rhythm Music signed license agreements to protect all their new releases, beginning in the year 2000. Last year, Warlock Records sold nearly 4 million albums and has guaranteed that a minimum of 2 million this year will be made with MusicGuardTM. MusicGuardTM, TTR's newest technology, protects CDs against illegal copying. This is the first time audio CDs will be protected against piracy.

Mr. Adam Levy, President and CEO of Warlock Records and N-Coded Music (distributed through Red/Sony (NYSE:SNE)) stated, "With the advent of inexpensive CD recorders, illegal CD copying is rapidly becoming a gigantic problem for the record industry. MusicGuardTM provides the industry with a solution to this problem. I am pleased to be one of the first users of this exciting new technology." Mark Finkelstein, President and CEO of Strictly Rhythm Music, states, "When the kids who make compilations of dance music realize that illegal copies of my CDs don(1)t play, they are just going to go somewhere else to copy and will go to the music store to buy ours."

Mr. Marc D. Tokayer, Chairman & CEO of TTR Technologies said, "TTR has been at the forefront of the war against digital piracy, first in the area of software and now with MusicGuardTM, in the area of music. We are thrilled that our technology will be instrumental in thwarting the scourge of CD piracy. We are especially happy to be working with Warlock Records and Mr. Levy in this effort."

Leading industry figures have expressed the hope that, for the first time, there appears to be a viable solution to the global problem of CD piracy. Mr. Michael Fine, Grammy award winning producer and former VP of Artists and Repertoire at Deutsche Grammaphon said, "MusicGuardTM offers an elegant, sophisticated, and inexpensive solution to CD piracy."

About CD Piracy

According to the Recording Industry Association of America (RIAA), the recording industry loses about $5 billion annually to global piracy of recorded music, $1 million a day in the U.S. alone. Two recent developments have caused this issue to become one the highest priorities in the industry today. First, until recently, an investment of millions of dollars was required to pirate high quality audio CD's. Today, however, one can purchase a CD writer or "burner" for as little as $180. and blank recordable discs (CD-Rs) are widely available for less than $1. With these simple components, anyone can easily and inexpensively set up a pirate CD factory. The second recent development is the acceptance and widespread use of MP3 compression technology. This technology has made the Internet a popular vehicle for the electronic transmission of music. Today there are many websites legally offering music downloadable in MP3 format such as those operated by MP3.com, Inc. (Nasdaq: MPPP), RealNetworks, Inc. (Nasdaq: RNWK), Lycos, Inc. (Nasdaq: LCOS), EMusic.com Inc. (Nasdaq: EMUS), barnesandnoble.com (Nasdaq: BNBN), Amazon.com (Nasdaq: AMZN), a2b music which is affiliated with AT&T Corp. (NYSE:T) and CDNOW (Nasdaq: CDNW). In addition, there are thousands of other websites which illegally offer pirated music robbing artists and record companies of their royalties. This form of piracy is growing exponentially and is not included in the $5 billion mentioned above.

About MusicGuardTM

MusicGuardTM is a unique hardware based technology, which prevents the unauthorized copying of CDs. There is no other technology available, which protects content on the original, authentic CD. CDs protected by MusicGuardTM play normally in the existing base of CD/DVD players with no affect to music quality. Trying to make a copy of a MusicGuardTM protected CD will result in either the copying process aborting or an unacceptable degradation of quality on the unauthorized disc. Similarly, attempts to produce MP3 files from a MusicGuardTM protected CD will either fail or result in inferior and unusable audio. TTR anticipates that MusicGuardTM will be available for general release at the beginning of 2000.

About Warlock Records

Warlock Records Inc. was formed in 1986 by Adam Levy. From humble beginnings working out of his New York City studio apartment, within ten short years, Mr. Levy, along with partner Joel Bonner, built the company into a multimillion dollar industry and one of the oldest and largest independent record labels in the United States.

Levy's roster includes stars such as DJ Skribble, Trick Daddy, Jonathan Butler, Candy Dulfer and Grammy Award Winner Arturo Sandoval, as well as the enormously popular series Dance Music USA. Warlock Records also owns and/or distributes over 45 associated labels, including N-CODED Music, for which he is President. Warlock also owns all the masters to two of the most famous 1980's independent dance music labels, STREETWISE RECORDS and SLEEPING BAG RECORDS.