House Beautiful Brings the Pages of the October Issue to Life with New Digital Technology

Press Contact: Lara Burhenn

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

First National Magazine to Use Digimarc Discover™; Invisible Watermarks Embedded in Editorial Allow Readers to Unlock Videos and Extra Content With Mobile Devices

NEW YORK, NY (September 13, 2011) — In its October issue, House Beautiful reveals an innovative digital program with the Digimarc Discover platform, through which hidden digital watermarks are embedded in the printed page to give it another dimension. As an innovator in the publishing industry, House Beautiful is the first national magazine to seamlessly integrate the Digimarc Discover technology into its editorial content. Using the Digimarc Discover app, a free download from the iTunes App Store or Android Market, readers scan select magazine images embedded with a hidden digital watermark to launch behind-the-scenes videos and additional content on their smart mobile devices. The October issue hits newsstands today.

Making it easy for readers to identify the editorial with additional content, House Beautiful will include a special Table of Contents specifically highlighting the digitally watermarked features and also created a new icon that will appear throughout the issue informing readers of the special features. House Beautiful will feature a minimum of five Digimarc Discover watermarks in every issue.

There are seven Digimarc Discover features in the October issue:

• "The Best" (page 35): Watch a video of a House Beautiful editor putting leaf-shaped sticky notes to the test.
• "Master Class" (page 48): Launch a photo slideshow of this month's Master Class designer, Jeffrey Bilhuber, who has been published frequently in the magazine.
• "Rugs" (page 70): Artist Joseph La Piana shares the inspiration behind his new rug collection.
• Editor's Letter (page 97): Editor-in-Chief Newell Turner takes readers behind the scenes of the October issue with his video walk-through.
• "Surround Yourself with What You Love" (page 116): If Craig Schumacher's layered, eclectic look strikes your fancy, you'll enjoy the slideshow of his last house featured in House Beautiful.
• "Do It With Heart" (page 146): Scan the fabric in the photograph on page 146 to launch a Web site with video showing two artists' interpretation of a similar Josef Frank pattern.
• "Kitchen of the Year" (page 148): Chef Tyler Florence takes readers on a video tour of House Beautiful's 2011 Kitchen of the Year in Rockefeller Center, which he designed.

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. Digimarc is working on several new offerings to expand the range of consumer experiences — such as purchase a product, view a video, save for later, download a coupon, or share with a friend — that will enable readers to take immediate action on the content they are interested in.

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.

For more information about House Beautiful and the October issue, please contact Kelly Carone Abdo at 212.649.2321 or kcaroneabdo@hearst.com and for information about Digimarc Discover, please contact Gina Giachetti at 510.858.8111 or ginag@aboutcomms.com.

About House Beautiful

House Beautiful is a leading authority on American home design and decoration, reaching more than seven million readers every month. Founded in 1896, House Beautiful is the oldest continuously published shelter magazine in the United States. In addition to its U.S. flagship, House Beautiful publishes 2 editions around the world. Hearst Magazines is a unit of Hearst Corporation. Once it completes its acquisition of Lagardère SCA's 100 titles in 14 countries outside of France, Hearst Magazines will publish more than 300 editions around the world, including 20 U.S. titles. Hearst Magazines is a leading publisher of monthly magazines in the U.S. in terms of total circulation and reaches 88 million adults (Spring 2010 MRI).

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.