Nebraska Pilots New Secure Digital Driver License System From Digimarc; Nebraska Governor Mike Johanns Receives the First Digital License Produced by the System

    BURLINGTON, Mass.--Feb. 11, 2003--Digimarc ID Systems, LLC, a wholly owned subsidiary of Digimarc Corporation , today announced that the Nebraska Department of Motor Vehicles has begun piloting a new digital driver license system with an innovative design that makes it one of the most secure in the nation.
    Governor Mike Johanns received the first digital license produced by the system in Lincoln, Nebraska, on Monday, Feb. 10. By the end of May, the Department expects to complete implementation of the system at 98 examining offices and more than 100 issuing offices located around the state. The system includes computer hardware and software for exam stations and complete image capture workstations at the issuance offices.
    "We are pleased to be kicking off the pilot of this system ahead of schedule and look forward to being able to offer the citizens of our state a more secure, durable and long-lasting card," said Beverly Neth, director, Nebraska Department of Motor Vehicles. "Nebraska's card design is one of the most secure in the nation, and many of the security features incorporated into our new digital license and identification card are being considered by other states for adoption."
    "Nebraska is leading the way for states to implement new security features and designs into their identification cards, and Digimarc ID Systems is proud to be supporting the state's efforts with a new and innovative digital driver license system," said John Munday, president, Digimarc ID Systems.
    The new issuance system enables production of a more secure card to help prevent fraud, as well as a new vertical format used to identify minors. Digimarc ID Systems is supplying the state with specialized software, driver examination computer systems, and digital imaging workstations for issuing over-the-counter licenses to Nebraska's citizens. A centralized system will also be provided to store digital license data and interface with the state's network of computer systems.
    Digimarc ID Systems announced a five-year contract with Nebraska last June to convert the state's film-based license issuance system to digital technology as part of a system and security upgrade approved by the 2001 Nebraska legislature.

    About Digimarc

    Digimarc Corp. , based in Tualatin, Ore., is the leading provider of digital watermarking components and technologies used in a wide range of security, identification and brand protection applications.
    Digimarc ID Systems, LLC, based in Burlington, Mass., and a wholly owned subsidiary of Digimarc, is a leading global provider of secure and durable personal identification solutions. It is the leading producer of driver's licenses in the U.S. providing systems and services to 35 states. Internationally, Digimarc ID Systems produces identification documents for more than 65 governments around the world.
    Digimarc has an extensive intellectual property portfolio, with 79 issued U.S. patents with more than 1,700 claims, and more than 300 pending applications for U.S. patents, in digital watermarking, personal identification and related technologies. 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. These statements are based on management's current reasonable expectations and 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 these factors is set forth in filings by Digimarc with the Securities and Exchange Commission, including the most recent annual report on Form 10-K and the most recent quarterly report on Form 10-Q. Digimarc is not obligated to (and expressly disclaim any obligation to) revise or update any forward-looking statements in order to reflect events or circumstances, whether they arise as a result of new information, future events, or otherwise.