MetaSwarm Announces Exclusive Licensing Agreement for Music Rights in China

Tuesday March 4, 4:05 pm ET

MetaSwarm Joins Google and Baidu in the Digital Music Market in Mainland China

BEIJING, March 4 /PRNewswire-FirstCall/ -- MetaSwarm, Inc. (Pink Sheets: MSWM -News) today announced that it has signed an exclusive agreement with Beijing InfoSure Technology Ltd. to market ringtone music titles to be licensed by MetaSwarm. The agreement grants Beijing InfoSure the right to telemarket the music anywhere in mainland China and the right to distribute ringtones and callback tones on mobile phones, telecommunication value-added services and mobile Internet devices. Complete music titles will also be available to business establishments through licensing agreements. The agreement will initially encompass a catalog of Chinese music and ringtone titles licensed to Beijing InfoSure but will subsequently encompass catalogs from outside China during the first two years of the agreement due to potential licensing deals that MetaSwarm is negotiating. MetaSwarm's responsibilities will include the negotiation and licensing of music from content providers in the United States and throughout the world. Beijing InfoSure's duties will include the promotion, distribution network construction and sales.

Due to the nature of the service, potential revenues are based on how much content MetaSwarm can bring into the distribution channel as well as the number of people who will access the content. MetaSwarm anticipates potential 2008 revenues of US$1.6-2.3 million from these music rights, assuming no expansion of geographic service areas. Revenues are expected to increase in 2009 to US$800,000 to $1.1 million per month once the licensing agreements and technology are fully in place. This would potentially bring additional revenues of US$9.6-13.2 million to MetaSwarm in 2009 on the music rights business alone, assuming no expansion into additional provinces in China.

The Mobile Ringtone Market in China

As a result of the proliferation of social networks in China, there is a large demand for diverse inventories of ring tones and other licensed music in China. According to a recent speech given by the Chairman of the International Federation of the Phonographic Industry, the international record companies operating in China derive 15% of industry revenues from sales of music via mobile phones.

According to Chinese news site ChinaByte (http://data.chinabyte.com/142/2307642.shtml) China Mobile, China's largest cellular phone service provider, had 400 million users as of the end of 2007, of which 270 million were caller ringback tone ("CRBT") subscribers. In comparison, the entire population of the United States is about 300 million. One of the areas in which the telecommunications giant sees the most growth is in value-added services, such as CRBT. China Mobile noted that it generated approximately US$1.4-1.74 billion in revenues from CRBT subscriptions in 2007, an 18.54% increase over the same period in 2006. China Mobile predicts that the number of CRBT users in China will increase to 300 million and that annual revenues are expected to exceed approximately US$20 billion by 2010.

About MetaSwarm, Inc.

MetaSwarm, Inc. is headquartered in California and is focused in the information technology industry. MetaSwarm specializes in personal and commercial information assurance solutions, including anti-fraud, anti-spam, and relationship analysis solutions for the Internet e-commerce markets. Specifically, MetaSwarm products provide applications for message management, message and website validation, and message and website analysis for email, cell phone text messaging (SMS), instant messaging (IM), and web pages.

MetaSwarm has a strategic partnership with China Standard Technology Development Corporation, the SGS China JV

partner in China, to support and manage the Company's technology network in China. China Standard will manage the MetaSwarm government validated messaging system through their own data center and will also install, validate and manage all of the hardware for MetaSwarm's technology. China Standard's JV company, SGS China, currently issues many of the certificates of validation for imports/exports as well as quality assurance for China's government so this partnership is an extension that gives China Standard and SGS China reach into the online realm. China Standard will play a crucial role in MetaSwarm's China expansion, particularly when the system initiates its nationwide rollout to a potential market of 455 million cellular phone users.

About Beijing InfoSure

Beijing InfoSure Technology Ltd. is the only licensee of the Hyperswarm Engine patent pending products of MetaSwarm, Inc. Beijing InfoSure surfs on top of the leading tide of the state-of-the-art technologies in the world. Based on the platform of the Hyperswarm Engine, it does R&D and design, provides solutions against various digital information, including high efficient anti-spam solutions in email and SMS, anti-phishing solutions, as well as solutions and application services on message verification, information personalization, etc.

Beijing InfoSure has an exclusive agreement with China Unicom (NYSE: CHU -News) to install MetaSwarm's technology onto one of China's largest cellular networks. As of December 31, 2006, China Unicom served over 140 million cellular subscribers and is the world's third largest mobile phone operator. To date, China Unicom is the only licensed full telecom service provider in China, with services spanning fixed-line to mobile, IP telephony, data and Internet. Beijing InfoSure is the exclusive licensee of MetaSwarm's technology in China and the relationship between Beijing InfoSure and China Unicom is based on this licensed technology.

Safe Harbor Statement Under The Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectation

Contact: Marvin Shannon -- Chief Executive Officer

Phone: (626) 792-0153