Lions Gate Entertainment And Destiny Media Technologies Team Up For Major Motion Picture Online Promotion

Business Wire, Feb 6, 2001

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--Feb. 6, 2001

Shadow of the Vampire Promoted Online Using VideoClipstream(TM)

Destiny Media Technologies, Inc. (OTCBB:DSNY) announces that Lions Gate Films, a division of Lions Gate Entertainment Corp (AMEX:LGF), has chosen Destiny Media Technologies' VideoClipstream(TM) to help promote its latest Golden Globe nominated motion picture, SHADOW OF THE VAMPIRE.

This film stars academy award nominee, John Malkovich and Willem Dafoe, (http://www.shadowofthevampire.com).

Lions Gate Films will send promotional emails to their user base, which will stream the Shadow of the Vampire movie trailer. The trailer will also be streamed from banner ads on movie destination sites such as Hollywood Stock Exchange (http://www.hsx.com) and CinemaNow (http://www.cinemanow.com ). Shadow of the Vampire streaming email is available at: http://www.videoclipstream.com/demo/shadowemail.html and the banner ad can be viewed at: http://www.videoclipstream.com/demo/shadowbanner.html

"Destiny's technology allows us for the first time to reach our movie audience anywhere on the web with compelling, high-quality streaming content in familiar email and banner ad formats. We believe streaming banner ads will prove much more effective than the current banner ad formats," said Tom Ortenberg, Co-President of Lions Gate Releasings.

"This program with Lions Gate is important because it demonstrates that a leading film company recognizes the value that VideoClipstream(TM) provides to the online promotion of their film properties," said Ed Kolic, Chief Operating Officer of Destiny Media. "This is the first major release to use VideoClipstream(TM), and we anticipate that the results will prove positive. There is no other Java-based rich media banner product available on the market. For destination media sites such as HSX.com, VideoClipstream(TM) provides an opportunity to set a higher dollar value to this traditionally flat and static media element. This means additional advertising revenue to the site," concluded Kolic.

VideoClipstream(TM), a proprietary technology developed by Destiny, enables the delivery of streaming video directly from a web page, email or banner ad without the need for an external player or plug-in. As a Java-based technology, VideoClipstream(TM) can be viewed by approximately 93% of web users, with instant on demand streaming.

The VideoClipstream(TM) product suite includes a banner component for distributable rich media banners. Rich media banners can now be propagated and served throughout the Internet, without the need for additional plug-ins or downloads for the end user. The product is flexible and enables video streaming to take place directly within the banner, as soon as the banner is loaded, or simply on demand.

ClipstreamMail is Clipstream's rich media, html email product. Video streams on demand, in a variety of bit rates from 28.8kps to 8000kps, depending on the desire of the content owner. It also includes a "Pass along to a Friend" feature, which encourages the recipient to virally pass it along to others, while a built in data collection technology simultaneously tracks the senders and recipients.

Current solutions provided by companies such as Real Networks or Microsoft requires an external player, which cannot be embedded directly into emails or banners. Because VideoClipstream(TM) is Java-based, it is natively supported by HTML email programs. Java is a standard programming language developed by Sun Microsystems (NASDAQ:SUNW).

This relationship was facilitated by Convergent Media, a Los Angeles-based consulting firm which provides business development and marketing services to the digital entertainment industry.

Destiny Media Technologies, Inc. (http://www.dsny.com) is a leader in developing easy-to-use tools and enabling technologies to distribute digital media through the Internet. The company's suite of streaming and downloadable products includes: MPE(TM) (http://www.destinympe.com), a complete, secure media distribution system that provides e-commerce and digital rights management directly from within an MP3-compatible multimedia file; Clipstream(TM) (http://www.clipstream.com), a java-based tool which enables web pages, e-mail and banners to stream audio without the use of a player; Video Clipstream(TM) (http://www.videoclipstream.com), a technology for embedding streaming video into a web page, e-mail or banner; and the RadioDestiny Broadcaster(TM) (http://www.radiodestiny.com), which allows a user to webcast live or scripted internet radio from a computer to anyone on the Internet. Established in 1991, the company is headquartered in Vancouver, Canada.

"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.