MARINA DEL REY, Calif.–(BUSINESS WIRE)–Digicorp, Inc. (OTCBB:DGCO - News) announced today that it is launching a new advertising service for online music to be delivered via its web portal Beat9.com. The new service will utilize Digicorp's ViraCast technology to dynamically insert advertising into music files wherever and however they travel across the Internet. Digicorp offers both music labels and advertisers an immediate opportunity to tap into the power of peer-to-peer (P2P) file sharing, which accounts for 60% of all web traffic.

1720 Entertainment, whose conventional CD distribution is handled by Vivendi's (VIVEF) Universal Music Group, has signed an ad revenue sharing deal with Digicorp for viral, P2P distribution of songs and music videos. The first 1720 tracks to be launched will be from ELVIS WHITE with Akon, Alison Hinds, and Rissi Palmer, whose "Country Girl" is in the Top Ten on MySpace. The ad-supported music will be available free on Apple's (AAPL) iTunes and on file sharing sites like LimeWire and BitTorrent. The downloaded ViraCast music files will be locked, preventing transfer onto mp3 players and encouraging legal music sales for portability.

"We are very excited about our partnership with Beat9," stated 1720 President/CEO, Terry K. Johnson. "Their P2P technology is superior to anything we've seen, and the advertising component is the real icing on the cake. The 1720 new media model aligns perfectly with the viral marketing solutions of Digicorp."

With illegal music downloads still dwarfing legal online purchases, Digicorp gives music labels the ability to harness the power of P2P, instead of fighting it. Each music file is constantly served ads, so the more it is shared and viewed, the more revenue is generated.

"Consumers can now be encouraged to download and share music videos with as many people as possible," commented Digicorp CEO, Jay Rifkin. "Music companies can now exchange costly litigation for revenue generation."

About 1720 Entertainment

1720 Entertainment was established in 2004 to empower the dreams of artists who possess not only undeniable talent, but integrity and heart. The company embraces diversity, covering a broad spectrum of musical styles, and is passionately creative in the development of their artists, their music, performances and their careers.

© 2007 Digicorp, Inc. ViraCast is a registered trademark of Digicorp, Inc. All other product names, service marks, and trademarks mentioned herein are trademarks of their respective owners.

Digicorp, Inc.Sophia Kim, 310-728-1457info@DGCOinc.comwww.dgcoinc.com