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Digimarc Adds QR Code Reading

Press Contact: Lara Burhenn

Lara.Burhenn@digimarc.com | +1 503-469-4704

Enabled mobile applications now detect digital watermarks, identify music and read most commonly used QR codes

Beaverton, Ore — June 16, 2011 — Digimarc Corporation (NASDAQ: DMRC) today announced that it has further enhanced its Digimarc Discover mobile reader application to support reading of QR codes. The latest extension of the platform's downloadable mobile applications demonstrates the company's ongoing progress to enable smartphones to "see and hear" through optimal use of multiple content identification technologies.

Digimarc Discover allows consumers to access a wide variety of rich content and interactive experiences through the simple selection of "look" or "listen" within the launched application. The "look" mode utilizes the phone's camera to automatically detect the presence of a digital watermark or QR code within printed content and instantly deliver links to additional information, entertainment, direct online purchasing, enhanced multimedia experiences, and other network benefits. The Digimarc platform also provides the user with the option to "listen" through the phone's microphone to recognize songs using Gracenote® MusicID® audio recognition technology. New versions of the Digimarc Discover applications are now available for download from the iTunes Store and Android Market.

"The addition of QR code recognition to the Digimarc Discover platform is another step toward realization of our vision to enable pervasive intuitive computing using smartphones and other sensor-equipped digital devices. This feature further demonstrates our capability to leverage multiple technologies for content recognition to enrich and simplify the lives of consumers," said Jeri Owen, Vice President of Marketing at Digimarc.

Unique to Digimarc Discover 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 watermark technology differs from QR codes 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 aesthetics of the layout. Another distinguishing feature is the ability to put numerous imperceptible digital watermarks within a single ad or photo containing multiple items, each leading to different, relevant content online.

The Digimarc Discover™ Online Services Portal (OSP) offers a 30-day free trial to all new users seeking to embed digital watermarks in their publications. The OSP is the only service to enable the embedding of digital watermarks into printed material to deliver enriched content on smartphones. It is currently being used by a variety of magazines, newspapers, packaging companies, advertising agencies, printers and others to link consumers with a variety of network services.

Digimarc continues to invest in mobile research and has a working prototype that is able to recognize all forms of media content — print, audio and video — as demonstrated in this video, showing additional capabilities that we anticipate will become part of the Digimarc Discover platform in the future.

The Digimarc Discover reader capabilities are available for licensing for inclusion in third party branded readers. 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 will enable smartphones and other sensor-equipped devices, to "see and hear" all forms of media content using built-in cameras and microphones. Consumers simply point the phone at content they are interested in and will be presented with a range of associated network services such as purchase a product, learn more, 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 as a private label application or feature that can be integrated into existing applications.

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 regarding potential uses of Digimarc Discover™, time and functionality of future releases of Digimarc Discover 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 delayed market acceptance, failure to secure commercial partners to help address specific markets or functionality, development delays, or changes in economic, business and/or regulatory factors. More detailed information about risk factors that may affect actual results is set forth in the Company's Form 10-K for the year ended December 31, 2010 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.

Press Contact

Gina Giachetti
About Communications
+1 510 858 8111
pr@digimarc.com

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