Mexico Awards Digimarc New Voter ID Contract

Four-Year Contract Valued at Approximately $24 Million

Digimarc Corporation (NASDAQ:DMRC) announced today it has been awarded a contract by the Instituto Federal Electoral (IFE) of Mexico to supply tens of millions of voter identification credentials over the next four years.

The contract extends Digimarc’s service to the Mexican government, building upon the company’s track record in supplying IFE’s voter ID program for the past four years. Digimarc’s solution for highly secure, centrally produced credentials delivered more than 38 million voter IDs under the original contract.

IFE issues photo ID cards to eligible voters for local and federal elections. The voter ID is the main form of identity for the majority of Mexico’s citizens. It is used in banks (for example, when cashing a check) and for almost every official request where an ID is required.

Under the new contract, Digimarc will continue to supply all voter ID card materials and a number of new security features (including digital watermarking), operate central issue card manufacturing facilities, and provide overall service of the system to IFE.

”We are honored by Mexico’s continued trust in our industry-leading voter ID issuance solution,” said Bob Eckel, president, ID Systems, Digimarc. “We look forward to enhancing the security of the Mexican voter ID in this new contract with innovations like Digimarc® IDMarc™ digital watermarking while continuing to provide a highly secure, centrally issued credential that Mexican citizens can use to establish their identity for a variety of daily needs.”

Digimarc secure identification solutions are used currently in a number of ID programs in Latin America, including Costa Rica and Honduras, as well as in Puerto Rico.

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 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 360 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, 2007 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.

Contacts

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