Digimarc Introduces Smart Card Driver License

BEAVERTON, Ore. BEAVERTON, Ore.--(BUSINESS WIRE)--Digimarc Corporation (NASDAQ:DMRC), the leading provider of driver licenses in North America, announced today that its proven driver license solution is now available with a contactless smart card option that anticipates Federal requirements for citizen border crossing, such as the proposed “PASS” card. Recent Federal border security initiatives would require citizens to obtain a passport or special border “PASS” card in the future. Many U.S. States, particularly along the country’s borders, have expressed the desire to enable their citizens to continue to use their driver licenses as valid IDs for border crossing.

“As the leading supplier of driver license issuance systems in America, we are pleased to offer a smart card option to driver license issuers who want to offer their citizens a driver license with advanced technologies consistent with anticipated new Federal requirements for citizen border crossing credentials”

Digimarc provides driver license issuers an advanced and proven centrally issued driver license solution that can now incorporate a range of contactless smart card technologies. Digimarc’s smart card-enabled driver license solution also gives the Federal government an attractive, alternative means to meet its “PASS” card objectives with a low-risk, low-cost solution that leverages existing State ID issuance infrastructures.

“As the leading supplier of driver license issuance systems in America, we are pleased to offer a smart card option to driver license issuers who want to offer their citizens a driver license with advanced technologies consistent with anticipated new Federal requirements for citizen border crossing credentials,” said Bruce Davis, Chairman and CEO, Digimarc. “Digimarc’s smart card option for secure driver licenses keeps pace with emerging technologies and is responsive to States and Canadian provinces that want to maintain use of the driver license as an acceptable form of identification for border crossing. This new driver license solution is designed to give citizens a convenient and cost-effective alternative to the use of a passport or special ‘PASS’ card for border crossing.”

Use of the new driver license solution for border crossing is subject to Federal government approval, which is being pursued by a number of States, members of Congress, and citizen advocacy groups.

Digimarc Executive Vice President Scott Carr will speak Thursday, Oct. 5, at the 2006 Smart Card Alliance Annual Conference http://www.smartcardalliance.org/alliance_activities/next_meeting.cfm on “Paving the Way for Smart Card Driver Licenses.” Carr’s presentation takes place at 11:30 a.m.

For more information on the key features and benefits of the Digimarc smart card driver license solution, please visit http://www.digimarc.com/govt/smartcard.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.

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 possibility of the Federal government’s acceptance of driver licenses as valid IDs for border crossing and the expected benefits of the Digimarc smart card option (including the ability to satisfy Federal requirements for citizen border crossing), 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.