Digimarc Receives Favorable Ruling in Georgia Driver License Case.

TUALATIN, Ore. -- Digimarc Corporation (Nasdaq:DMRC) today announced that the Fulton County Superior Court in Georgia has continued until further order a previously issued restraining order in the Georgia driver license contract case. The order precludes the $2.5 million payment that Viisage Technology, Inc. (Nasdaq:VISG) recently announced it would receive in connection with a purported settlement of the litigation and termination of an alleged contract granted to it in 2002 by Georgia.

Among other things, the Court's ruling noted that:

--Any such payment to Viisage would violate the ongoing 2003 preliminary injunction it had previously issued, which precluded Georgia's Department of Motor Vehicle Safety and the Georgia Technology Authority from any activities related to the implementation or performance of the Viisage contract;

--Digimarc had "made a compelling case that irregularities occurred during the procurement process, and if the case proceeds to a full trial on the merits, there is a substantial likelihood that the Plaintiff will prevail."; and

--If Digimarc prevails in this case, the contract at issue between the Georgia DMVS and Viisage may be deemed null and void on the basis of having been awarded in violation of applicable procurement laws and rules.

The parties will continue to prepare the case for a trial, which is not expected to occur until sometime in 2005.

For the complete text of the Court's order, visit http://www.digimarc.com/docs/GA%20Order%209-02-04.pdf.

About Digimarc

Digimarc Corporation (Nasdaq:DMRC), based in Tualatin, Oregon, is a leading supplier of secure media solutions used in a wide range of security, identification and digital media content applications. Digimarc provides products and services that enable the production of more than 60 million personal identification documents and driver licenses per year in 32 U.S. states and the District of Columbia and 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 174 issued U.S. patents with more than 3,000 claims, and more than 350 pending patent applications in digital watermarking, personal identification and related technologies.

The company is headquartered in Tualatin, Oregon, with other U.S. offices in Burlington, Massachusetts; Fort Wayne, Indiana; San Francisco, California; and the Washington DC area; and European offices in London. 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. These statements are based on management's current reasonable expectations and 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 these factors is set forth in filings by Digimarc with the Securities and Exchange Commission, including the most recent annual report on Form 10-K and the most recent quarterly report on Form 10-Q. Digimarc is not obligated to (and expressly disclaim any obligation to) revise or update any forward-looking statements in order to reflect events or circumstances, whether they arise as a result of new information, future events, or otherwise.