Destiny Media Technologies Announces Significant Improvements and Enhancements to VideoClipstream
Company Releases new Beta Version of their Java Based Video Streaming Technology

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June 13, 2001

Vancouver. B.C. - Destiny Media Technologies, Inc. (OTCBB: DSNY) is pleased to announce the Beta release of the latest version of VideoClipstream™, Destiny's Java based playerless video streaming technology. The additions are significant from the first generation product and add unique functionality to this robust streaming technology.

VideoClipstream's patent pending, proprietary compression codec has been re-engineered with a resulting doubling in the motion estimation quality and in the subjective frame-to-frame quality. This means a four-fold quality increase from the first version of VideoClipstream™.

To provide a richer user experience, the input and output to the Java applet can now be controlled by javascript.. What this means to the users of VideoClipstream™ is increased flexibility in deployment including: timed slideshows, detecting filenames for database applications or integrating VideoClipstream™ into other web applications. An enhanced parameter set allows more end user control including the ability to add custom buttons or manipulate the video.

Destiny CEO, David Lawrence comments, "Changes to VideoClipstream™ have been largely market driven. Feedback from our customers has been encouraging. By listening to customer requests for new functionality, we are ensuring that the overall product evolves and that ultimately, VideoClipstream™ becomes the industry standard for playerless streaming. It is an exciting time to be in the streaming media sector, as the business climate improves we see new markets to exploit daily."

Most significantly, the new version of VideoClipstream™ supports random access and random seek of the video file being streamed. Users are able to grab a slider to move forward and backwards inside the movie. This feature is unique to VideoClipstream™ in the playerless video streaming market. A demo of the random seek is available at http://www.videoclipstream.com/demo/seek.html.

Another common request was the automatic detection of the user bandwidth. The content owner can now configure VideoClipstream™ to automatically detect the user's connection, rather than requiring them to click on a button.

Destiny CTO, Steve Vestergaard adds, "The ongoing development of Destiny's Clipstream product line is a priority in our programming initiatives. Today's announcement shows our dedication and commitment to the continued development of our Java based streaming technologies. Stay tuned for what we have coming next."

To encode VideoClipstream™, Destiny has developed a plug-in encoder for the leading video editing software program, Adobe Premiere, making VideoClipstream the only playerless Java streaming encoder for Adobe Premiere. VideoClipstream™ is a recognized Adobe Premiere third party plugin and is available for download from the Adobe site: http://www.adobe.com/products/plugins/premiere/main.html.

Destiny is currently developing other plug-ins and also has a stand-alone version of the encoder, which is currently being tested.

A proprietary technology developed by Destiny, the Clipstream™ product suite enables the delivery of streaming media directly from a banner, e-mail or web page without the need for an external player or plug-in. As a java-based technology, Clipstream™ can be viewed by approximately 93% of web users, whereas Current player based solutions such as Real Player (RNWK-Nasdaq) or Windows Media Player (MSFT-Nasdaq) require special servers and and external players. Media Metrix reports show that only 40% of web users actually use the Real or Microsoft media players Clipstream™ is one of the only streaming formats to be readily accessible through firewalls and is natively supported by standard HTTP serving infrastructure.

About Destiny Media Technologies, Inc.

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™ (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™ (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™ (http://www.videoclipstream.com), a technology for embedding streaming video into a web page or e-mail; and the RadioDestiny Broadcaster™ (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.

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