MarkAny Licenses Digimarc Digital Watermarking Patents for Deterring Music Piracy.

MarkAny, a Korean digital watermarking and rights management company, to market applications for music

BEAVERTON, Ore. -- Digimarc Corporation (NASDAQ: DMRC) and MarkAny, a Korean digital watermarking and rights management company, today announced that MarkAny has signed a multi-year agreement to license Digimarc patents. The non-exclusive agreement licenses Digimarc audio watermarking patents to MarkAny for use in combating music piracy and enabling new models of digital distribution and consumption.

The agreement supports MarkAny's global market development efforts, which include offering audio watermarking solutions initially to the pre-release music market.

"Digimarc is excited to be supporting MarkAny's digital watermarking market development efforts with a license to Digimarc intellectual property," said Reed Stager, executive vice president, Digimarc. "Digital watermarking solutions are ideally positioned to support new evolving business models and address many of the challenges involved in distributing music digitally. MarkAny's solutions aim to enable new open music distribution models while mitigating the risks of piracy in Asia as well as the U.S. and Europe."

"MarkAny is pleased to have access to Digimarc's digital watermarking expertise and intellectual property as we focus our marketing efforts to address the piracy and distribution issues of music globally," said Dr. John Choi, president of MarkAny. "As an established provider of DRM solutions across Asia, we believe that offering effective digital watermarking solutions is a natural extension of our business, and is better suited to current conditions for the digital distribution of music."

MarkAny offers a portfolio of digital security, authentication and copyright protection solutions that it sells into the enterprise and government markets in Asia (including Korea, Japan, Malaysia and Indonesia) for secure document delivery and online certificate printing applications.

In the U.S., digital watermarking solutions from a number of suppliers have been incorporated into millions of audio tracks from the major record labels to identify leaks of promotional, pre-release music onto the Internet. By serializing music with digital watermarks, similar to how a product contains an identifying serial number, content owners can identify where pre-release music left the path of authorized distribution. A watermark identifier can also enable promotional applications, such as linking the music to promotional materials.

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 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.

About MarkAny

MarkAny Inc. is a leading company that develops forgery prevention solutions for multi-media content and solutions for copyright protection. MarkAny also provides digital security and authentication solutions, audio watermarking technology and unique digital rights management technology.

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 efficacy of digital watermarking in digital content distribution models and piracy deterrence, 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, 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.