Manitoba Selects Digimarc Facial Recognition System to Deter Identity Fraud.

Facial Recognition will be a Core Component of Manitoba's New Enhanced Driver License Program

BEAVERTON, Ore. -- Digimarc Corporation (NASDAQ: DMRC) today announced that Manitoba Public Insurance has chosen Digimarc's Facial Recognition Solution (FRS) to help screen applicants for driver licenses -- including its new Enhanced Driver License, a Western Hemisphere Travel Initiative (WHTI) compliant travel document that will provide a convenient alternative to the passport for entering the U.S. at land and water border crossings.

Digimarc's Facial Recognition Solution will be used by investigators to compare new photos taken for Manitoba driver licenses against all photos in the image database of Manitoba Public Insurance to quickly identify applicants attempting to obtain multiple licenses under different identities. This process has proven highly effective in helping driver license issuers rapidly uncover potential fraud in their databases and ensure that only one legitimate credential is issued per qualified applicant.

"We are delighted that Manitoba has selected Digimarc to provide the province with our proven facial recognition system to help them verify the identity of applicants before issuing a driver license," says Bob Eckel, President of ID Systems for Digimarc Corporation. "Manitoba joins a growing number of jurisdictions adopting facial recognition solutions to help them combat identity fraud."

"We are pleased to be working with Digimarc to help us implement facial recognition technology as part of our system upgrade to permit issuance of Enhanced Driver Licenses. The new Enhanced Driver License program will provide Manitoba citizens with a cost-effective, convenient option for border crossing. FRS will help us validate the identity of applicants, and speed the investigation of those suspected of fraud," says Dan Guimond, Vice President of Business Innovation and Insurance Operations for Manitoba Public Insurance.

Manitoba Public Insurance will be the 18th jurisdiction in North America to implement the Digimarc FRS solution, and the 5th Canadian province.

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 production of more than 60 million personal identification documents, including two-thirds of U.S. driver licenses and IDs for more than 25 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 360 issued U.S. patents with more than 7,500 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.

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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-K for the year ended December 31, 2007 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.