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Press Contact: Lara Burhenn

lara.burhenn@digimarc.com | 503-469-4704

| Mar 05, 2012

Digimarc Adds Barcode Reading to Digimarc Discover(tm) Mobile Platform

by Mar 05, 2012

Single mobile application now detects digital watermarks, QR codes, barcodes, and identifies music

Beaverton, Ore — March 5, 2012 — Digimarc Corporation (NASDAQ: DMRC) today announced it has further enhanced its Digimarc Discover mobile "seeing/hearing" application to include support for reading of barcodes used in consumer packaging (UPC and EAN) and books (ISBN). The latest version of the platform's free downloadable mobile application demonstrates the company's ongoing progress to enable smartphones to efficiently and reliably "see and hear" through the use of multiple content identification technologies.

The Digimarc Discover mobile application allows consumers to automatically access online content and services from printed materials and music through simple selection of "look" or "listen" options within the application. The "look" mode utilizes the smartphone's camera to automatically detect the presence of digital watermarks, QR codes, and now barcodes in printed content and instantly deliver related print-to-mobile experiences, such as directing users to a product search page for product info, comparison shopping, finding related products, and user reviews. Digimarc Discover also provides the user with the option to "listen" through the phone's microphone to recognize songs using Gracenote® MusicID® audio recognition technology.

This latest release also includes performance improvements to the overall "look" mode for Android users, as well as support for multi-core iOS devices. The free Digimarc Discover mobile application is available for download from the iTunes App Store and Android Market.

"The addition of barcode recognition to the Digimarc Discover Platform further demonstrates our vision to advance the ability of mobile computing devices to see, hear and comprehend the world in which they operate, greatly enriching and simplifying the lives of consumers," said Ed Knudson, EVP, Sales & Marketing, at Digimarc. "There no longer is a need to launch multiple applications to access enhanced content from print or audio — Digimarc Discover is all you need."

Unique to the Digimarc Discover mobile application is its use of patented digital watermarking technology. Digital watermarks are easily embedded into all forms of media and are imperceptible to human senses but quickly detected by computers, networks or other digital devices like mobile phones. Digital watermarking technology differs from QR codes, Microsoft Tags, and barcodes as it enables marketers to deliver enriched media content on smartphones without occupying valuable space on the page or negatively impacting the design or overall branded aesthetics of the layout. Another distinguishing feature is the ability to place numerous imperceptible digital watermarks within a single advertisement, photo, or article containing multiple items, with each unique watermark linked to different, relevant content online.

The Digimarc Discover reader capabilities are available for licensing for inclusion in third party branded mobile applications. Companies interested in learning more about digital watermarking technology and licensing opportunities for the Digimarc Discover Platform can visit: www.digimarc.com/discover.

About the Digimarc Discover Platform

The Digimarc Discover™ Platform enables smartphones and other sensor-equipped devices to "see and hear" media content using built-in cameras and microphones. Consumers simply direct their phone at content they are interested in and are presented with a range of associated network services such as purchase a product, view a video, save for later, download a coupon, or share with a friend, for example. The Digimarc Discover mobile applications are available for licensing and can be integrated into existing applications.

Publishers and others can embed digital watermarks into content using the Digimarc Online Services Portal (OSP). The OSP is being used by magazines, newspapers, packaging companies, advertising agencies, and others to enable a variety of new experiences and capabilities from print. Companies interested in learning more about digital watermarking technology and licensing opportunities for the Digimarc Discover platform can visit: www.digimarc.com/discover.

About Digimarc

Digimarc Corporation (NASDAQ:DMRC), based in Beaverton, Oregon, is a leading innovator and provider of enabling technologies that create digital identities for all forms of media and many everyday objects. The embedded digital IDs are imperceptible to humans, but not to computers, networks and devices like mobile phones, which can now use cameras and microphones as sensory inputs to "see, hear and understand" the world around them within the context of their environment. Digimarc has built an extensive intellectual property portfolio with patents in digital watermarking, content identification and management, media and object discovery to enable ubiquitous computing and related technologies. Digimarc develops solutions, licenses its intellectual property, and provides development services to business partners across a range of industries. For more information, please visit www.digimarc.com.

Forward-Looking Statements

With the exception of historical information contained in this release, the matters described in this release contain various "forward-looking statements." These forward-looking statements include statements and any related inferences regarding increases in license and subscription revenues, and other statements identified by terminology such as "will," "should," "expects," "estimates," "predicts" and "continue" or other derivations of these or other comparable terms. These forward-looking statements are statements of management's opinion and are subject to various assumptions, risks, uncertainties and changes in circumstances. Actual results may vary materially from those expressed or implied from the statements in this release as a result of changes in economic, business and/or regulatory factors. More detailed information about risk factors that may affect actual results will be set forth in the company's Form 10-K for the year ended December 31, 2011 and in subsequent periodic reports filed with the SEC. 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, Digimarc undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this release.

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