Digimarc and AquaMobile to Bring Spanish and Portuguese Camera Phone Users Simplified Internet Access with Digital Watermarking.

BEAVERTON, Ore. & MADRID, Spain -- Digimarc Licenses Print-to-Web Technology to AquaMobile, a Provider of Advanced Mobile Solutions for Businesses and Consumers

Digimarc Corporation (NASDAQ:DMRC) and AquaMobile S.L. today announced an agreement enabling AquaMobile to bring Digimarc(R) Mobile(TM) print-to-web linking technology to the Spanish and Portuguese mobile markets for a variety of innovative mobile consumer and business applications.

"In countries such as Spain and Portugal, where more than 30 million mobile handsets exist in a region of 40 million people, e-commerce is increasingly conducted using imaging-enabled mobile devices rather than personal computers," said Stuart Rosove, senior director, business development, Digimarc Corporation. "By using image watermarking on printed material and other physical objects, our relationship with AquaMobile will result in the transformation of the physical world into the next graphical user interface for the web."

According to Wireless Intelligence, an information service set up by the GSM Association and consulting firm Ovum, mobile phone users worldwide now number more than 2 billion.

"We are excited to work with the recognized world leader in digital watermarking," said Javier Gonzalez, CEO and founder, AquaMobile. "As digital watermarks do not disrupt the images to which they are applied, this offers unlimited application and marketing possibilities, particularly with those companies that are sensitive to maintaining their brand images." Based in Madrid, AquaMobile is a mobile marketing and application solutions provider that leverages its technologies to simplify mobile Internet access, create highly practical applications and launch innovative marketing campaigns. The Company was founded by senior executives from the premium SMS, publishing and technology industries.

The Iberian marketplace is an ideal ecosystem for AquaMobile's visionary initiative as wireless carriers operating in the region are some of the most advanced in the world and have helped enable the rapid growth of mobile value-added services. Spanish and Portuguese mobile subscribers spend more than $1 billion each year on premium downloads of music, pictures, games, videos or information. The rapid growth of 3G technologies in the region further encourages the launching of innovative user-friendly services such as the ones provided by AquaMobile.

Digimarc Mobile www.digimarc.com/watermark/mobile/ uses Digimarc's patented digital watermarking technology to give camera phone users simple navigation from printed materials carrying an "invisible" digital watermark to compelling mobile media entertainment and commerce. Digital watermarks can be incorporated into images in magazines, signs, catalogs, tickets and entertainment packaging as a means to bridge the physical and digital worlds. By pointing and clicking on a digital watermark-enabled image, a user's phone will navigate directly to specific content or commerce (for examples of potential mobile applications enabled by Digimarc Mobile and illustrations of how this works, visit: www.digimarc.com/watermark/mobile/wireless_apps.asp).

Along with key mobile infrastructure companies, AquaMobile has lined up several pilots with highly recognized businesses in the Iberian market.

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 240 issued U.S. patents with more than 5,000 claims, and more than 500 pending 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.

About AquaMobile

AquaMobile S.L. is a mobile value-added services provider founded by a group of reputable executives of some of the leading mobile content and services multinationals, consulting firms and mass media corporations. Based in Madrid, Spain, it plans to quickly expand to Portugal. AquaMobile is already working with some of the largest corporations in Spain to develop state-of-the-art mobile solutions that will make access to content and information from mobile handsets a lot easier and intuitive.

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 relating to statements relating to the successful implementation of technologies under the license agreement and other 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, 2005, 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.