Digimarc's Industry-Leading Biometric Identification Solution Proves Effective as Crime-Fighting Tool.

The New York Times and Other Media Highlight Success that Massachusetts and Kansas have had in Stopping Driver License Fraud

Digimarc Supports 2/3 of the North American States Using Facial Recognition Biometrics to Verify Driver License Applicant Identity

BEAVERTON, Ore. -- Digimarc Corporation (NASDAQ: DMRC) today announced that its Digimarc facial recognition-based Biometric Identification solution is helping many States to prevent identity theft and fraud and enhance traffic safety. Eight U.S. driver license issuers are using or are in the process of implementing Digimarc facial recognition solutions to ensure that only one license is issued to each legitimate ID holder.

According to a Feb. 17, 2007 article in the New York Times ("Driver License Emerges as Crime-Fighting ToolO"), the Massachusetts Registry of Motor Vehicles (RMV) recently used the Digimarc solution to nab a suspect on "America's Most Wanted" criminal list.

Similarly, the Kansas City Star reported in a Feb. 24, 2007 article ("Driver's Licenses Help Combat Fraud") that the Kansas Department of Revenue, another customer of the Digimarc facial recognition solution, has "identified more than 1,200 cases in which people tried to dupe the system and get another identity on another license" over the past two and a half years.

Every night, Digimarc facial recognition-based Biometric Identification solutions help State driver license issuers run a combined 650+ billion image comparisons - checking new or renewal driver license portraits against each State's own driver license database and flagging potential duplicate images for further investigation. Digimarc anticipates by the end of 2007 the solution will run more than 3 trillion combined image comparisons each night as States roll out new systems.

"Digimarc facial recognition biometrics ensures individuals applying for a driver license have not already been issued a valid license under another name or identity," said J. Scott Carr, executive vice president, Digimarc. "We use sophisticated facial recognition technologies that match the new portrait to the State database of issued licenses to identify potential duplicates. Our industry-leading Biometric Identification solution has proven to be very effective in helping jurisdictions deter driver license fraud and as a result also fight crime associated with the fraudulent use of State-issued identity credentials."

According to Digimarc estimates, 29% of all U.S. driver license issuing jurisdictions are using facial recognition-based biometrics to ensure the goal of "one driver, one license" and additional jurisdictions have expressed an intent to do so. Digimarc estimates that it serves approximately 2/3 of the jurisdictions currently using facial recognition-based biometrics and is actively pursuing opportunities in other States considering biometrics in the driver license enrollment process.

States have reported that duplicate license offenders caught by the system include minors who want to buy alcohol, individuals with revoked or suspended driving privileges and career criminals including drug dealers and sex offenders who use false identification to evade capture and arrest.

For more information about Digimarc customers that are successfully using facial recognition-based Biometric Identification, please visit (http://www.digimarc.com/govt/case_studies.asp) or (http://www.digimarc.com/media/news.asp)

About Digimarc

Digimarc Corporation (NASDAQ: DMRC), based in Beaverton, Oregon, is a leading supplier of secure identity and media management solutions. Digimarc provides products and services that enable the annual production of more than 60 million personal identification documents, including two-thirds of U.S. driver licenses and IDs for more than 20 countries. Digimarc's digital watermarking technology provides a persistent digital identity for various media content and is used to enhance the security of financial documents, identity documents and digital images, and support other media rights management applications.

Digimarc has an extensive intellectual property portfolio, with more than 300 issued U.S. patents with more than 6,000 claims, and more than 500 pending U.S. and foreign patent applications in digital watermarking, personal identification and related technologies. The Company is headquartered in Beaverton, Oregon, with other U.S. offices in Burlington, Massachusetts; Fort Wayne, Indiana; and the Washington DC area; and international offices in London and Mexico. Please go to www.digimarc.com for more company information.

Securities Safe Harbor 

With the exception of historical information contained in this release, the matters described herein contain certain "forward-looking statements" that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements regarding the number of image comparisons to be run by States in future periods, statements regarding opportunities with States considering the use of biometrics in the driver license enrollment process, statements containing the words "believes," "expects," "estimates," "anticipates," "will" or words of similar import or statements of management's opinion. These statements are subject to certain assumptions, risks, uncertainties and changes in circumstances. Actual results may vary materially from those expressed or implied from the statements herein or from historical results, due to changes in economic, business, competitive, technological and/or regulatory factors. More detailed information about risk factors that may affect actual results is set forth in filings by Digimarc with the Securities and Exchange Commission on Forms 10-K, 10-Q and 8-K, including but not limited to those described in the Company's Form 10-K for the year ended December 31, 2006 in Part II, Item 7 thereof ("Management's Discussion and Analysis of Financial Condition and Results of Operations") under the captions "Liquidity and Capital Resources" and "Factors Affecting Forward Looking Statements" and in Part II, Item 9A thereof ("Controls and Procedures"). Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date of this release. Except as required by law, we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements.