Digimarc Releases New Version of Digimarc for Images Software for Adobe PhotoShop(R)

Digimarc Corporation (NASDAQ:DMRC) today announced the availability of its newly enhanced Digimarc for Images plug-ins, shipped in-box with Adobe PhotoShop®, enabling photographers and corporations to better manage their photos and image assets by communicating copyright information and owner contact details, and reporting to owners on both authorized and unauthorized use of images online.

Coinciding with the release of Adobe Creative Suite® 4 (CS4), the new version of Digimarc for Images includes several enhancements in response to customer feedback:

• Improved robustness for image format transformations, resizing and compression
• Expanded support for international customers with the addition of seven new languages (Czech, Hungarian, Polish, Romanian, Russian, Turkish and Ukrainian), for a total of 22 available languages
• Improved Search Service with expanded Web site coverage and monthly and/or on-demand reports of where customer images are located online

Digimarc for Images enables content owners to place a persistent, invisible digital identifier (digital watermark) into photographs and other images. The company also offers a Search Service that continuously crawls the Web looking for such watermarked images. This provides valuable information on where and how images are being used, which can help effectively measure the reach of a marketing campaign. The Search Service also enables content owners to take action on unauthorized use of their images.

Furthermore, Adobe PhotoShop users can embed or read digital watermarks from within the application. This allows potential buyers to quickly identify the owner and how to contact him or her so that they can easily purchase or license the photographs or images they want to use.

"Digimarc is pleased to address several user priorities in this latest version of Digimarc for Images,” commented Jeri Owen, Digimarc vice president of marketing. "The increased robustness helps to ensure the watermark remains with the image through a wide range of file transformations, sizing and image compression. Our solution helps manage important image assets as widening distribution of images over the web has made it increasingly difficult for brand owners and professional photographers to monitor where their images are being used online. We believe that Digimarc for Images offers a unique and proven solution to this growing challenge.”

Digimarc will offer a free Webcast on November 13 for Adobe users interested in learning more about digitally watermarking their images using Adobe PhotoShop®. For further information on the Webcast pricing and availability, please go to http://www.digimarc.com/images.

About Digimarc

Digimarc Corporation (NASDAQ:DMRC), based in Beaverton, Oregon, is a leading innovator and technology provider, enabling businesses and governments worldwide to enrich everyday living by giving persistent digital identities to all forms of media and objects. The company’s technology enables a wide range of solutions for enhancing traffic safety and national security, deterring fraud, counterfeiting and piracy, and enabling new digital media distribution and monetization models that provide consumers with more choice and access to content when, where and how they want it. Digimarc licenses its intellectual property to business partners across a range of industries, delivers solutions for protecting and managing digital images, and offers professional development services to bring strategic initiatives to market. The company is headquartered in Beaverton, Oregon. Please go to www.digimarc.com for more company information.

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 can be identified, in some cases, by terminology such as "may," "will," "should," "expects,""intends,""plans," "projects," "anticipates," "believes," "estimates," "predicts," "potential," "illustrate," "example" 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 is set forth in the company's registration statement on Form 10 under "Risk Factors." 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.