DIGSOUND and MUSICANE Sign Deal Giving Artists Additional Revenue Streams for Their Music

Market Wire, March, 2006

DIGSOUND, Inc. www.digsound.com ("DIGSOUND") (OTC: DGSU) and Musicane, www.musicane.com signed an agreement today to integrate DIGSOUND's music watermarking platform, VR24/7, into Musicane's online download digital music store. The partnership will offer a complete solution for managing the intellectual property rights, to the benefit of the artists.

DIGSOUND President and founder Paul Martin states, "The alliance with Musicane will enable artists to establish new revenue streams for their content. We are now able to increase promotional and distributional opportunities for this music, which will grow additional revenue for all parties. Hearing a theme from your favorite TV show on a ringtone is just one of the many possibilities from this new partnership," Martin concluded.

Vikramaditya Jain, Chief Financial Officer for Musicane, added, "When we met DIGSOUND, we knew this was the deal that made sense for our members. Now artists can have a better opportunity of reach. With Musicane and DIGSOUND, artists can sell their music to their fans and license it to TV broadcasters."

About Musicane

Musicane is a service that allows artists to sell digital downloads seamlessly from their own website, or create a free personalized website from a variety of design templates. Key features include direct digital downloads of music, video and ringtones, real time online reporting, optional Windows Digital Rights Management (DRM), monthly payouts direct to bank accounts, promotional coupon programs for fans and much more. For artists, labels, managers and other music-related companies unsure of how to tackle the digital market or which service to sign up for, Musicane provides a digital option which lets you retain complete control. Notable new artists include The Plebz and The Upwelling, recently nominated as a candidate for Spin.com's band of the year.

About DIGSOUND

Using Nielsen Media Research's Music detection software, DIGSOUND Inc. has created web-based platform (VR24/7) that allows music providers, broadcasters and advertisers an online interface, which enables more efficient methods for distributing and monitoring content usage. VR24/7 allows users to access their content. It also provides broadcasters who use DIGSOUND's watermarked content the ability to automate and manage the process of licensing music.

Safe Harbor Act Disclaimer: Forward-looking statements in this release are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties, and actual results could differ from those discussed. This material is information only and is not an offer or solicitation to buy or sell the securities.

Contact: Karla Lopez 310-566-5087 digsound1@hotmail.com DIGSOUND Inc. http://www.vrdigsound.com