YANGAROO Inc., the
industry’s leading secure digital media distribution company, today announced
results for the third quarter ended September 30, 2008. Revenues for the
quarter ended September 30, 2008 were 31% higher than revenues for the same
period in 2007, due to the growing use of YANGAROO’s Digital Media
Distribution System (DMDS) by the music and radio industries across North
America. Cash and cash equivalents were $3,626,000, representing over a year
of funds on hand. In the United States market, the volume of deliveries made
by YANGAROO’s DMDS in the nine-month period increased by 56% to 1.3 million,
already matching the entire volume for 2007. In addition, deliveries made via
DMDS in Canada increased by 74% in the nine month period. From the second
quarter to the third quarter of this year, revenues grew 27% and the loss was
reduced by 34%.

Highlights from the third quarter of 2008 include the commencement of
billing to a U.S. based major record label for use of DMDS, reaching agreement
with the Examiner of our U.S. patent application with respect to the patent
claims, the launch of several new features for DMDS, an agreement with the
Canadian Academy of Recording Arts & Sciences (CARAS) to distribute music and
promotional materials submitted for Juno Award consideration to judges and
CARAS’ members via DMDS, and the appointment of seasoned U.S. based executive
Josh Zieman, former Vice President of Marketing at Manhattan/Blue Note Label
Group, a division of EMI Music based in New York City, as Senior Vice
President Business Development.

“DMDS’ adoption across North America continues to accelerate,” said
YANGAROO President & CEO John Heaven. “We look forward to the release in the
new year of DMDS 5.0, which we expect will set a new standard for digital
delivery of broadcast quality video, music, advertising and other digital