YANGAROO, USA Studios Enter Strategic Alliance, Inaugurate End-to-End Advertising Industry Solution

Companies to jointly provide full suite of post-production and delivery services, establish YANGAROO presence in New York

YANGAROO Inc., (TSX-V: YOO, OTCBB: YOOIF) the industry's leading secure digital media management company, today announced a multi-year, comprehensive partnership with New-York based USA Studios, a leading provider of postproduction and distribution services for brands and agencies. As a result of the partnership, YANGAROO and USA will jointly sell and market their services – YANGAROO’s leading digital distribution technology and USA’s full spectrum of capabilities – to drive growth and revenue. At the same time, YANGAROO and USA will benefit by being integrated into each other’s workflows and that of their customers as well as from opportunities for collaborative, customer-centric product development.

Existing and new customers of USA Studios will benefit from YANGAROO Advertising. Powered by the company’s patented Digital Media Distribution System (DMDS) platform, it is a Web-based and hardware-free service that enables senders to deliver high-quality ads and videos to broadcasters around the globe. It includes the industry’s first fully-automated traffic management system called “Reporter”, which merges personalized traffic instructions with a signed and date-stamped confirmation that traffic instructions have been received, providing a significant competitive advantage.

USA, whose clients include Microsoft, TAG Worldwide, Jaguar, Land Rover, Priceline, Calvin Klein, Disney, Ubisoft, Diageo Brands, My Traffic Department, Grey Goose, Overstock.com, Ancestry.com, and Mattel, among many others, will continue to provide its industry-leading post-production services – video editing, closed captioning, on-air tracking, direct response versioning, adaptation for online and multimedia services – and YANGAROO will gain access to USA’s infrastructure, including customer support personnel as well as office space in New York.

“We’re excited to enter into this long-term relationship with USA Studios,” said Gary Moss, President and CEO of YANGAROO. “It allows both companies to coordinate growth strategies, leverage each other’s operational strengths, and continue to develop industry-leading products.”

“We see this relationship as a natural and important progression for our advertising services business. We have built a solid reputation over the past quarter century providing a broad array of services to the advertising industry and digital distribution has become an increasingly important segment of those services. We feel the time is right for us to strategically align ourselves with a specific digital distribution platform rather than acting as a network agnostic reseller. With that in mind YANGAROO Advertising was the clear choice,” said Roger Khan, President of USA Studios. “YANGAROO’s state of the art digital delivery will provide for the seamless integration of high-quality HD and SD video delivery into our existing production workflows. It also allows us previously unheard of flexibility in the way we offer digital distribution services to our existing and future clients.”

“We look forward to the YANGAROO and USA Studios’ teams working together from New York,” said Karen Dealy, YANGAROO President of Advertising Operations. “We have needed a New York presence for our Advertising Division and I can’t think of a better partner. We can now offer our current and future clients a full slate of services which we expect will help grow our business at a much quicker rate.”

About YANGAROO:

YANGAROO is a company dedicated to digital media management. YANGAROO’s patented Digital Media Distribution System (DMDS) is a leading secure B2B digital cloud based solution focused on the music and advertising industries. The DMDS solution provides more accountable, effective, and far less costly digital management of broadcast quality media via the Internet. It replaces the physical, satellite and closed network distribution and management of audio and video content, for music, music videos, and advertising to television, radio, media, retailers, and other authorized recipients. The YANGAROO Awards platform powers many of North America’s major awards shows.

YANGAROO has offices in Toronto, New York, Los Angeles, and Dallas. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under OTCBB: YOOIF. For further information, please contact Gary Moss at 416-534-0607 ext.111 or visit www.yangaroo.com.

About USA Studios:

USA Studios is a cutting edge media services provider to the advertising and broadcast industries. The company was started in 1988 as a pioneer and innovator in standards conversions, with their own proprietary system that made importing and exporting TV programs more economical and convenient for content owners. Since then the company has remained at the cutting edge of innovation while growing their suite of services organically. Today USA Studios boasts one of the largest most sophisticated technical postproduction facilities in the industry, staffed by an award winning team of production and client services professionals. The company provides a wide array of pre-broadcast services to the advertising industry and long form content producers and content owners around the globe. Their ad services include pre-broadcast quality control, editing, closed captioning, encoding for on-air tracking, versioning, tagging and distribution. Their long format services include asset management, foreign market adaptation – including foreign language dubbing, standards conversion and worldwide content distribution. USA Studios’ New York hub facility was featured in the February 2012 edition of Broadcast Engineering.

USA Studios has offices in New York and Los Angeles. For further information, please contact Sean Tahzib EVP USA Studios at 212-398-6400 ext. 7007 or visit www.usastudios.tv

The statements contained in this release that are not purely historical are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.