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Nellymoser and Digimarc Technology Brings the 2012 SI Swimsuit Issue To Life Without Compromising This Year's Stunning Photos

Press Contact: Lara Burhenn

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

The New Mobile Swimsuit Viewer App Built By Nellymoser Uses Digimarc Watermarks Instead of QR Codes

Arlington, MA and Beaverton, Ore — February 14, 2012 — For the second year in a row, the digital extensions of the annual SPORTS ILLUSTRATED Swimsuit franchise, out today, include a Nellymoser-powered mobile campaign. Behind-the-scenes videos of the 19 different swimsuit model photo shoots can be launched from the magazine's pages using the new mobile Swimsuit Viewer App for iPhone, iPad and Android. Each video is launched by scanning one of the digitally watermarked photos using the Digimarc Discover™ Platform from Digimarc Corporation (NASDAQ: DMRC).

The 2012 Swimsuit Issue is the first top 100 U.S. magazine to use digital watermarking for promoting a video. Digimarc's digital watermarking technology embeds an imperceptible pattern into the image that can be detected by a smartphone, but not by the human eye. Unlike a QR code, watermarks do not cover a part of the image or ruin the page design.

The SI Swimsuit Viewer 2012 mobile app and high quality video delivery process were built and are managed by Nellymoser, a Massachusetts-based mobile marketing and technology services company. The app and video are powered by Nellymoser's mobile engagement platform, which enables marketers to optimize, deliver and present digital content across desktops, tablets and phones. It is available for free from the iTunes App Store and Android Market.

The SI Swimsuit Viewer 2012 app provides a completely branded mobile experience that enhances the print issue. Readers use the app and point their smartphone's camera at the model's photo. The digital watermark is automatically detected, which triggers the associated interactive content. Satellite TV company, DirecTV, is sponsoring the free Swimsuit Viewer app and will feature Supermodel Kate Upton in a brief DirecTV ad at the end of each video.

"The SPORTS ILLUSTRATED swimsuit issue has become the gold standard for showcasing cutting edge, high-quality print-to-mobile experiences. Nellymoser is pleased to be a part of this popular issue for a second year in a row," said John Puterbaugh, Founder and CEO of Nellymoser, Inc. "Given that millions of readers look forward to this issue, we anticipate a tremendous amount of viewing activity. Nellymoser's mobile engagement platform is designed to handle these large numbers of users while ensuring fast downloads, crisp video, and clear sound."

"The annual Swimsuit Issue is an American institution and we're thrilled that SPORTS ILLUSTRATED selected our technology to create a fun, engaging experience for its readers," said Ed Knudson, EVP, Sales & Marketing of Digimarc Corporation. "SI has really showcased the creative versatility of Digimarc Discover as a next generation print-to mobile platform."

About Nellymoser Print-to-Mobile Solutions

Nellymoser produces the mobile user experience for its customers' campaigns. The company's turnkey solutions include a combination of creative services, campaign programming, site hosting, and detailed analytics. Mobile campaigns are launched when a user with a mobile device scans a digital watermark or 2D action code, such as a QR code or Microsoft Tag. Mobile experiences can include product videos, enter-to-win contests, mobile commerce, sharing of content via social networks and more.

Nellymoser Companion Apps, like the SI Swimsuit Viewer App, provide a completely branded mobile environment that engages readers and lets them compare prices, engage socially, subscribe, shop and unlock exclusive deals tailored just for them. Powerful Companion Apps can be built in weeks and at a fraction of the cost of a regular smartphone app.

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 SPORTS ILLUSTRATED Swimsuit

SPORTS ILLUSTRATED Swimsuit (www.SI.com/Swimsuit) is a powerhouse media franchise that reaches more than 70 million people annually, and more men 18 to 34 than the Super Bowl. The iconic franchise now spans more than 20 product extensions in digital, social, broadcast, publishing, mobile and consumer products. Since debuting in 1964 Swimsuit has become a pop-culture phenomenon and an established launching pad for successful careers in TV, fashion, business and film.

About Nellymoser

Nellymoser Inc. (www.nellymoser.com), a mobile marketing and technology services company founded in 2000 and headquartered in Arlington, MA, turns printed action codes (e.g., 2D bar codes, QR codes, Microsoft Tags, SMS) into instant, interactive consumer "engagements" on mobile phones. These range from contests and product videos to interactive multimedia engagements that can be shared on social media (e.g., Facebook, and Twitter) and include e-commerce for instant product purchases. Nellymoser's customers include leading publishers, advertisers, retailers, and consumer packaged goods companies.

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 Digimarc's investment in marketing and research and development associated with the launch of Digimarc Discover, increases in license 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 are 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.

Company Contacts

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

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