Destiny Media Achieves First Operating Profit From Doubling of Play MPE(R) Revenues

Destiny Media Achieves First Operating Profit From Doubling of Play MPE(R) Revenues

Quarterly Revenue Growth of 42% Exceeds Management Projections

VANCOUVER, British Columbia, July 14 /PRNewswire-FirstCall/ -- Destiny Media Technologies (BULLETIN BOARD: DSNY) , the global leader in the secure distribution of pre-release music to radio and provider of instant play streaming media, is pleased to announce that third quarter revenues grew by 42% from the previous quarter (80% over the third quarter in fiscal 2008) on the strength of better than anticipated revenue for its Play MPE system. During the quarter the Company became profitable and realized positive cash flow from operations. Play MPE revenue grew by 114% from the same quarter in the prior year.

"The Company has 'crossed the chasm' into profitability and we expect revenues, income and positive cash flow to continue to grow into the foreseeable future", commented Destiny CFO, Fred Vandenberg. "We have experienced 17% compounded quarter over quarter revenue growth over the past eleven quarters which has resulted in income from operations. We project revenue to continue to rise in our fourth quarter leading to a conservatively estimated 30% increase in net income and to realize a profit for the year ended August 31, 2009."

According to Destiny CEO, Steve Vestergaard, "We have worked closely with the record labels to build a system that works well with their internal business processes and they are comfortable relying on our system as they phase out physical CD's completely. We expect our profits from Play MPE business to grow into the foreseeable future as the labels expand usage internally and we expand internationally. In addition, we expect to layer in new revenue streams for Clipstream products that will begin rolling out in Q1 of next year."

                       CONSOLIDATED STATEMENTS OF OPERATIONS                        (Expressed in United States dollars)                                     Unaudited                                     Three      Three      Nine      Nine                                    Months     Months     Months    Months                                    Ended      Ended      Ended     Ended                                    May 31,    May 31,    May 31,   May 31,                                    2009       2008       2009      2008                                      $         $          $         $   --------------------------------------------------------------------------   Revenue                         665,829    369,098  1,687,878   1,085,555   --------------------------------------------------------------------------   Operating expenses   General and administrative      181,749    206,646    540,654     838,385   Sales and marketing             193,044    323,330    634,256   1,244,920   Research and development        206,559    335,540    652,823   1,120,829   Amortization                     10,675     11,781     27,407      33,326   --------------------------------------------------------------------------                                   592,027    877,297  1,855,140   3,237,460   --------------------------------------------------------------------------   Income (loss) from operations    73,802   (508,199)  (167,262) (2,151,905)   Other income (expenses)   Other income                     12,755     31,384     72,877      73,499   Interest income                   1,858        492      2,964      15,451   Interest and other expense         (942)    (9,237)    (2,531)    (18,480)   Settlement gain                  15,008          -     15,008           -   --------------------------------------------------------------------------   Net income (loss)               102,481   (485,560)   (78,944) (2,081,435)   --------------------------------------------------------------------------    About Destiny Media Technologies  

Destiny (www.dsny.com) provides technical solutions which facilitate the transfer of various forms of media across the internet. Our solutions make this process more secure and more efficient. From our proprietary technologies we have developed two main product lines. Our products include the Play MPE(TM) System (www.plaympe.com), and Clipstream (www.clipstreamaudio.com) and video (www.clipstream.com).

   Company Contact:   Fred Vandenberg   CFO Destiny Media Technologies, Inc.   604 609 7736 x236   fredv@dsny.com     Safe Harbor Statement:  

"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.

First Call Analyst:
FCMN Contact:

Source: Destiny Media Technologies, Inc.

CONTACT: Fred Vandenberg, CFO of Destiny Media Technologies, Inc.,
+1-604-609-7736, ext. 236, fredv@dsny.com

Web Site: http://www.dsny.com/

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Profile: International Entertainment