IEEE Spectrum Survey Ranks Digimarc High on List of World's Most Valuable Patents.

Digimarc ranked in the top 10 of the "Computer Systems and Software" category

BEAVERTON, Ore. -- Digimarc Corporation (Nasdaq:DMRC) today announced that it has joined the ranks of the world's most valuable patent portfolios, according to the "Patent Power" survey published in the November issue of IEEE Spectrum magazine (http://www.spectrum.ieee.org/nov06/4699).

Digimarc landed the No. 9 spot, in the "Computer Systems and Software" category, joining global IT companies IBM, HP, Microsoft, Toshiba, Sun, Fujitsu, Cadence, NEC and Palm in the top 10 most valuable IP portfolios.

"Some of the most interesting findings in the survey are the smaller companies like Digimarc showing up and playing with the big boys of R&D, going toe-to-toe with the likes of Hewlett-Packard and Microsoft," said Harry Goldstein, editor of IEEE Spectrum's "Patent Power" survey. According to the article, this year's survey reinforces the notion that "quality, not quantity, counts when it comes to patent portfolios."

"We are thrilled that our patent portfolio has been recognized by IEEE Spectrum in their annual survey and are honored to join such an influential list of leading innovators in the field of computer systems and software," said Joel Meyer, vice president, intellectual property, Digimarc. "We were especially pleased to see that our portfolio's pipeline impact scored the highest among the top 10 in our category. This is yet another validation of the quality of our management of intellectual property and recognition of the extraordinary significance of Digimarc's innovations."

The "pipeline impact" score measures the impact that a company's patents have on others in the industry, based on how often a company's patents are cited as foundational work within their own and others' patents. Digimarc scored highest among its peers in this category.

Digimarc has an extensive intellectual property portfolio, with more than 285 issued U.S. patents with more than 5,000 claims, and more than 500 pending patent applications in digital watermarking, media content identification and management, secure identity management, and related technologies.

The IEEE Spectrum "Patent Power" survey was conducted by 1790 Analytics, an independent research firm that specializes in analyzing patent citations.

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 285 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.

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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 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-Q for the quarter ended September 30, 2006, in Part I, Item 2 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 I, Item 4 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.