Destiny Media to Spin Off ClipStream & BannerStream

Destiny Media Technologies (http://www.destiny-software.com) announced that it will spin off its Clipstream and Bannerstream audio products into a wholly owned subsidiary called Clipstream Technologies, Inc.

The new company will be initially financed with private funding and will build a separatemanagement team. There may be an IPO sometime in the future, Destiny says.

The spin-off wasn't very much of a surprise since Destiny has been going in two directions lately: providing users with their own streaming radio, RadioDestiny, and the ClipStream product. This deal will allow the company to concentrate on its core competency, its proprietary digital music format "MPE". MPE isfile format with built-in e-commerce, digitalrights management; secure distribution and visual display functions.

Clipstream (http://www.clipstream.com) is a new audio system that uses a java applet to play streaming audio, directly embeddedon web pages. No external player or plug-in is required. Bannerstream takes the streaming audio and simply adds them to to banner ads.

Interestingly, the Bannerstream product puts the new company in competition with similar companies like RadicalMail (http://www.radicalmail.com) and AudioBase (http://www.audiobase.com).

The MPE audio file format was recently launched. Destiny CEO Steve Vestergaard explains, "The MPE media distribution systemhas been well received and is taking a lot of management focus. Theopportunity for Clipstream is tremendous, but we believe it requires aseparate team to exploit the market potential. From both an operations andfunding perspective, it makes sense to move this product line into a newcorporation."

Mark Lotz, Destiny CFO adds, "Clipstream Technologies will be fundedseparately with the goal of attaining a separate public market listing. Weexpect this strategy will increase shareholder value in Destiny."