Digimarc System Enables State of Washington to Issue the First Enhanced Driver Licenses...

Digimarc System Enables State of Washington to Issue the First Enhanced Driver Licenses in North America

The First RFID-Enabled Enhanced Driver License (EDL) Issued by
Washington State, and Produced by Digimarc, Enables Citizens to Cross
Land and Sea Borders within North America
BEAVERTON, Ore.--(Business Wire)--Digimarc Corporation (NASDAQ:DMRC) today announced the Washington
State Department of Licensing (DOL) has issued the first Enhanced
Driver Licenses (EDL) in North America, making Washington the first
State to offer its citizens a convenient and cost-effective
alternative to a passport or PASS card that can be used to re-enter
the United States at sea and land border crossing points.

"We are pleased to be working with Digimarc to deliver the
nation's first Enhanced Driver License and help facilitate
cross-border travel and economic opportunities for our citizens,
particularly against the backdrop of the 2010 Vancouver Winter
Olympics," said Liz Luce, Director, Washington State Department of
Licensing. "It is an exciting day for Washington to be leading the
nation in the issuance of Enhanced Driver Licenses."

"Digimarc is pleased to offer a complete, secure border crossing
solution that supports the objectives of the Department of Homeland
Security and is economical and convenient for citizens," said Bob
Eckel, president, ID systems, Digimarc. "We are proud to have
Washington as the first State to roll out the Digimarc EDL system in
North America, establishing a model that other States and Provinces
can easily adapt to meet their needs. We are well positioned to serve
the growing market demand for EDL solutions and believe programs like
Washington's continue the movement toward more secure processes for
issuing valid driver licenses."

A key part of Digimarc's EDL system in Washington includes
applicant screening solutions to verify an applicant's identity before
issuing an EDL. Identity verification includes authenticating
applicant proof-of-identity documents as well as biometric comparisons
of facial photographs to ensure that only one license is issued to one
legitimate card holder.

In Washington, citizens can choose an Enhanced Driver License
option that is issued upon proof of citizenship, identity and
residency, and serves as a WHTI-compliant alternative document to a
passport for re-entry into the United States by land or sea. The new
licenses cost $40, only $15 more than a standard Washington license.

For more information on Enhanced Driver Licenses, please visit:

http://www.dol.wa.gov/about/news/priorities/edl.html

http://www.digimarc.com/media/release.asp?newsID=583

http://www.dhs.gov/xnews/releases/pr_1196872524298.shtm

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 350 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.

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 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.

Digimarc Public Relations
Leslie Constans, 503-469-4620
lconstans@digimarc.com
or
RH Strategic Communications for Digimarc
Delisa Davis, 202-585-0210
Ddavis@rhstrategic.com

Copyright Business Wire 2008