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Digimarc and Mobile Data Systems to Deliver Digital Watermarking-Based Mobile Print-to-Web Applications to U.S. Market; Mobile Data Systems Inc. Becomes Digimarc's First U.S. Partner to Deploy the Digital Watermarking-Based Digimarc Mobile Platform.

BEAVERTON, Ore. -- Digimarc Corporation (NASDAQ:DMRC) today announced an agreement with Mobile Data Solutions Inc. to bring new consumer-oriented mobile applications and experiences based on Digimarc Mobile print-to-web linking technology to the U.S. marketplace.

Under the agreement, Mobile Data Systems will license and use the Digimarc Mobile platform to market a number of innovative mobile consumer applications that allow camera phone users to automatically link from printed materials, such as catalogs, magazine advertisements, and packaging, to associated sites and services on the Internet.

"With this latest agreement for the Digimarc Mobile platform, we are building momentum for digital watermarking solutions that simplify mobile Internet access and turn printed objects into launching points for compelling applications," said Stuart Rosove, senior director, business development, Digimarc. "Mobile Data Systems' leadership in providing innovative mobile solutions makes them an ideal partner to market Digimarc's print-to-web linking capabilities to the growing U.S. mobile market."

One example of Mobile Data Systems' innovative applications includes its Pocket Photo Suite(TM) solution, which helped photographers of a major news organization covering the Super Bowl XL game earlier this year to quickly and easily transmit pictures from the sidelines to distribution centers using wireless LAN connectivity, without ever leaving the field. The Company also offers an array of wireless mobility applications for sales personnel, field technicians, and insurance and patient safety users (see www.mobiledatasys.com), among others.

"We are excited by the potential of the Digimarc Mobile platform to bridge the physical and mobile worlds and envision a variety of innovative and practical applications that will benefit mobile consumers," said Anthony Iacovone, vice president of business development at Mobile Data Systems. "We believe the combination of our expertise in optically-based mobile solutions and Digimarc's expertise in digital watermarking will enable valuable new experiences for mobile Internet users."

Using Digimarc Mobile technology, machine-readable digital watermark data that is not visible to users is incorporated into printed materials -- magazines, signs, catalogs, and entertainment and consumer packaging -- and "read" by enabled mobile imaging devices, such as smart phones and PDAs, to automatically deliver valuable mobile content and e-commerce opportunities to consumers.

Digimarc Mobile solutions, which are recognizable by the "Digimarc Enabled" icon, are also being deployed by partners in Japan, Spain and Portugal, representing some of the world's most advanced mobile economies. For more information, please visit: http://www.digimarc.com/comm/mobile.asp

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 275 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 Mobile Data Systems

Mobile Data Systems, Inc. is a privately held company based on Long Island, New York that delivers software applications for mobile devices that enable customers to deploy mobility solutions for their field-based associates. Mobile Data Systems offers off-the-shelf as well as customized applications that enable field mobility for service technicians, home healthcare professionals, vehicle insurance inspectors, insurance adjusters, and others. Software solutions from Mobile Data Systems are designed to run on mobile devices including batch, WLAN, and WWAN-enabled PDAs, as well as other Windows Mobile(R) platform devices. Applications from Mobile Data Systems take advantage of specialized technologies integrated in mobile devices, such as digital image capture, bar code scanning, and wireless connectivity to maximize the benefits of mobility solutions customers seek to deploy. Learn more at: www.mobiledatasys.com.

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 growing momentum and appreciation of digital watermarking solutions that simplify mobile Internet access and the expected benefits of the Digimarc Mobile platform, as well as 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 quarter ended June 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.
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Publication:Business Wire
Date:Sep 20, 2006
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