Newly Issued Digimarc Patents Enable Better Management and Protection of Movies and Music.

BEAVERTON, Ore. -- New patent claims relate to a wide range of techniques such as methods to control or process video with reference to out-of-band and in-band information

Digimarc Corporation (NASDAQ:DMRC) today announced the issuance of new patents covering a range of innovations that enable better management and protection of entertainment content such as music and movies.

"The breadth and depth of Digimarc's patent portfolio continues to grow at an exciting pace with innovation that supports the delivery of new entertainment experiences for consumers and protects media content from piracy," said Joel Meyer, Digimarc's vice president, Intellectual Property. "The new innovations represented in these patents demonstrate how digital watermarking can be used to enhance and protect a variety of media, including movies, music and images."

Some of the inventions covered within the more than 30 recently issued patents relate to:

--Controlling video with reference to out-of-band data conveyed with the video (e.g., VBI data or headers) and information hidden in the video. U.S. Patent No. 6,987,862.

--Hiding information in audio signals in a way that survives manipulation of the audio, such as audio compression. U.S. Patent No. 6,983,051.

--Robust audio watermark detection technology useful for copy control, broadcast monitoring, copyright identification and remote triggering. U.S. Patent No. 6,944,298.

--Leveraging watermarks embedded in both audio and video portions of multimedia content (e.g., movies) for applications like content identification and protection. U.S. Patent No. 6,975,746.

Digimarc licenses its digital watermarking patents for use with audio, video, image or print content in applications such as broadcast monitoring, forensic tracking, copy prevention or play control, authentication, asset management, rights management, copyright communication and filtering, and content linking or mobile commerce.

Companies currently licensed under Digimarc's patents include: Activated Content, Dolby Laboratories and its subsidiary Cinea, GCS Research, MediaGrid, Nielsen Media Research, Philips Electronics, Signum, Teletrax (under sublicense from Philips), Thomson, Verance and Verimatrix.

A broader list and description of Digimarc's patents can be found at www.digimarc.com/patent/patents.asp. Parties interested in licensing Digimarc patents should contact Digimarc at [e-mail] or 503-469-4800.

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 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 230 issued U.S. patents with more than 5,000 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.

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 validity and coverage of Digimarc's patents, 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-Q for the quarterly period ended Sept. 30, 2005, in Part I, Item 2 thereof ("Management's Discussion and Analysis of Financial Condition and Results of Operations") under the caption "Risk Factors." 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.