Digimarc ID Systems Wins Vermont DMV Business; Vermont Selects Incumbent Supplier Digimarc ID Systems for Another Multi-Year Contract

    BURLINGTON, Mass.--March 4, 2003--Digimarc ID Systems, LLC, a wholly owned subsidiary of Digimarc Corporation , today announced that the Vermont Department of Motor Vehicles has selected the company to supply the state with a new-generation digital licensing system under a four-year contract with two annual renewal options.
    Under the new contract, Digimarc ID Systems will deliver upgrades to the state's innovative digital license system, including higher levels of security - not only for Vermont's driver and state identification cards but also for the overall system. The new system will provide expanded capabilities to increase productivity and to manage driver license data, and will also exploit Digimarc's advanced image capture technology to provide improved image qualities.
    Vermont's investment in an enhanced digital licensing system will allow the DMV to further improve the license renewal process and decrease waiting times for Vermont residents by providing easy access to data stored in a secure database and eliminating duplicate entry of customer information. This will speed the processing and improve the security of the more than 140,000 driver licenses and identification cards that Vermont issues each year at its 11 locations around the state, including one mobile issuing station.
    "We are pleased to be continuing our working relationship with Digimarc ID Systems, and look forward to adding enhancements to our existing advanced digital license system. The implementation of upgrades to this system will provide us with faster turnaround times, which will in turn improve the quality of service we offer our citizens. Furthermore, the new system will allow for better security features on our identification documents," said Bonnie Rutledge, Commissioner, Vermont Department of Motor Vehicles. "We will also have a new look for our drivers' licenses, and will issue age-specific horizontal and vertical drivers' licenses as a means to help combat the serious issue of underage drinking."
    "Our team has built a strong partnership with Vermont over the past eight years, and we are thrilled to have the opportunity to leverage our experience to assist the state in deploying one of the most secure and easy to use digital license systems in the world," said Paul Gifford, president of Digimarc.

    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 86 issued U.S. patents with more than 1,800 claims, and more than 350 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.