Nielsen Media Acquires DIGSOUND License Agreement

SANTA MONICA, Calif.--()--July 12, 2005--DIGSOUND Inc. (OTC:DGSU), a provider of watermarking, verification and music services to the broadcast music industries, announced today that its exclusive licensing agreement with Audio Audit for the local TV and cable broadcast markets has been assigned to Nielsen Media Research, an operating unit of VNU, today as part of Nielsen's acquisition of AudioAudit.

"This is a big step for broadcast music," said Paul Martin, President and CEO of DIGSOUND. "Watermarking technology is moving to the forefront in this industry and the acquisition of Audio Audit by Nielsen confirms its stability and reliability. DIGSOUND is positioning itself to be a leading service provider of watermarked content," Martin added.

“Watermarking technology is moving to the forefront in this industry and the acquisition of Audio Audit by Nielsen confirms its stability and reliability. DIGSOUND is positioning itself to be a leading service provider of watermarked content”

"Watermarking and verification of an airplay levels the playing field for music providers and with the addition of Nielsen Media Research products we can expand the value of our offering to the broadcaster," Kevin Demeritt, Interim COO and VP of Marketing, commented. Demeritt went on to say, "The additional value the watermarking service adds for the broadcaster once the data is manipulated changes the landscape of simply licensing music."

About DigSound

Using cutting-edge technologies, DigSound Inc. is working to create a platform that allows music providers an on-line interface enabling more efficient methods for reporting and monitoring content usage. In addition, the DigSound platform will provide broadcasters who currently use outdated industry procedures the ability to automate and manage this process. DigSound was founded by Paul Martin, a music-licensing veteran, who has licensed thousands of tracks to hundreds of stations nationwide for more than 10 years. He has recently held the positions of Director of TV Syndication for Groove Addicts, as well as West Coast Director of Sales for Frank Gari and Gari Communication.

"Safe-Harbor" Statement -- This press release contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements regarding potential sales, the success of the Company's business, as well as statements that include the word "believe" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of DigSound Inc. to differ materially from those implied or expressed by such forward-looking statements. This press release speaks as of the date first set forth above and DigSound Inc. assumes no responsibility to update the information included herein for events occurring after the date hereof. Actual results could differ materially from those anticipated due to factors such as the lack of capital, timely development of products and or services, inability to deliver products and or services when ordered and an inability of potential customers to pay for ordered products and or services.

Contacts

DigSound Inc.
Kevin D. DeMeritt, 310-566-5087
kdemeritt@sprintmail.com