DMRCE Digimarc (MM)

Digimarc Corporation (Nasdaq:DMRCE) announced today that it has surpassed the 10 millionth issuance mark in its production and delivery of the newly designed, secure voter identification card to the Instituto Federal Electoral (IFE) of Mexico, the government agency responsible for issuing voter ID credentials. The new system issues IDs to eligible voters for federal elections and practically all local elections, and, as the de facto form of ID for many citizens, is commonly used for identification at banks, stores and government agencies. Digimarc's production of this world-class, secure voter ID solution began in March 2004. With the project running on schedule, Digimarc estimates that the total volume of secure IDs produced over the life of the contract is between 30 million and 37 million. "We are pleased to have hit the 10-million card milestone with this important international secure identification project," said Robert Eckel, president of Digimarc ID Systems. "By supplying the government of Mexico with a new, highly secure ID issuance system, we are providing Mexico's eligible citizens with a secure photo ID that enables them to establish their identity when voting or conducting other business where the voter credential is accepted as a form of identification. This leading-edge program exemplifies the best practices, expertise and security innovations Digimarc brings to foreign voter and national ID programs." Under the contract, Digimarc supplies all card materials and security features, and the operation includes secure inventory of these materials and a control and audit process that accounts for every piece of material and every identification document produced. The IDs are produced in Digimarc's secure central issuance printing facilities in Mexico, and delivered to IFE for issuance to eligible voters. Digimarc secure identification card solutions are used currently in several key ID programs in Latin America, including Costa Rica, Honduras, Brazil, Colombia, and Puerto Rico, and are used in more than 20 countries worldwide. The Company manages the Mexican voter ID program from its offices in Mexico. About Digimarc Digimarc Corporation (Nasdaq:DMRCE), based in Beaverton, Oregon, is a leading supplier of secure media solutions used in a wide range of security, identification and digital media content applications. Digimarc provides products and services that enable the production of more than 60 million personal identification documents, including two-thirds of U.S. driver licenses and IDs for more than 20 countries. Digimarc's digital watermarking technology provides a persistent digital identity for various media content and is used to enhance the security of financial documents, identity documents and digital images, and support other media rights management applications. Digimarc has an extensive intellectual property portfolio, with 194 issued U.S. patents with more than 4,000 claims, and more than 400 pending patent applications in digital watermarking, personal identification and related technologies. The Company is headquartered in Beaverton, Oregon, with other U.S. offices in Burlington, Massachusetts; Fort Wayne, Indiana; and the Washington, D.C., area; and international offices in London and Mexico. Please go to www.digimarc.com for more Company information. Securities Safe Harbor Under the Private Securities Litigation Reform Act of 1995 With the exception of historical information contained in this release, the matters described herein contain certain "forward-looking statements" that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements relating to the expected benefits of the use of Mexico's new, secure voter ID cards by IFE or citizens of Mexico, statements relating to the best practices and security innovations delivered by Digimarc, statements relating to future card production estimates, and other statements containing the words "believes," "expects," "estimates," "anticipates," "will" or words of similar import or statements of management's opinion. These statements are based on management's current reasonable expectations and are subject to certain assumptions, risks, uncertainties and changes in circumstances. Actual results may vary materially from those expressed or implied from the statements herein or from historical results, due to, among other things, changes in economic, business, competitive, technological and/or regulatory factors. More detailed information about risk factors that may affect actual results is set forth in filings by Digimarc with the Securities and Exchange Commission, including its recent filings on Forms 10-K, 10-Q and 8-K, including, but not limited to, those described in the Company's Form 10-Q for the quarterly period ended March 31, 2005, in Part I, Item 2 thereof ("Management's Discussion and Analysis of Financial Condition and Results of Operations") under the captions "Overview," "Restatement of Prior Financial Results," "Critical Accounting Policies and Estimates," "Liquidity and Capital Resources," and "Risk Factors," and in Part I, Item 4 thereof ("Controls and Procedures").