Colorado Department of Revenue, Motor Vehicle Business Group Fights Driver License Fraud with Next Generation Facial Recognition ID System from Digimarc ID Systems, Identix

Business Wire, Dec 4, 2002

Business Editors/High-Tech Writers

BURLINGTON, Mass.--(BUSINESS WIRE)--Dec. 4, 2002

Colorado DOR Enhances License Issuance Program with Automated Facial

Recognition Technology to Reduce Identity Fraud

Digimarc ID Systems, LLC, a wholly owned subsidiary of Digimarc Corporation (Nasdaq:DMRC), today announced that the Colorado Department of Revenue (DOR), Motor Vehicle Business Group has enhanced its Digimarc ID Systems' driver's license issuance program with new state-of-the-art automated facial recognition technology.

Under the enhanced license issuance program, selected driver's license applicants will be compared with the 10 million DOR records on file to identify possible duplicates and aid in DOR investigation of identity fraud. Colorado has been using Digimarc ID Systems' technology since 1994 to issue over 1.2 million driver licenses annually. Because of its pioneering deployment of the Digimarc ID Systems-supplied portrait-capture systems for digital image capture, the Colorado DOR has high-quality images in its database and now operates one of the largest facial recognition databases in the world.

"We've selected this technology solution in order to implement the policy mandated by the 2001 legislature to protect our licenses from duplication fraud and are pleased to be working with our capable partner, Digimarc ID Systems, in fulfilling this mandate," said Aurora Ruiz-Hernandez, Senior Director, Motor Vehicle Business Group, Colorado Department of Revenue.

"The facial recognition search system from Digimarc ID Systems will assist the State of Colorado to prevent multiple drivers' licenses from being issued even if the applicants try to use different names and other data," said John Munday, president, Digimarc ID Systems. "This system that builds on the facial recognition algorithms provided by Identix Incorporated (Nasdaq:IDNX) promises to be a powerful new tool in Colorado's fight against identity fraud. We're pleased to support Colorado's continuing efforts to ensure the integrity and security of its license system and to protect the citizens of Colorado from identity theft and financial crimes related to identity fraud."

Munday continued, "This system is the first of its kind. The technology it uses is the product of a strategic alliance between Digimarc ID Systems and Identix to bring powerful new tools to large-scale identification programs like drivers' license systems. The joint development extends Identix's FaceIt(R) technology to our structured image databases and yet still ensures short processing times. Digimarc ID Systems has dramatically enhanced the interface to the Identix facial recognition software search engines so that the system could scale to support even large databases such as the ones maintained by the Colorado DOR."

Munday also said, "The Colorado DOR has joined other states that have implemented biometric solutions from Digimarc ID Systems validating the benefit of combining biometrics with our secure ID document solutions to prevent identity fraud."

Dr. Joseph J. Atick, president and CEO of Identix stated, "We applaud the steps that Colorado has taken in the fight against crime and identity theft. Biometric technologies, such as fingerprint and facial recognition, are not only fast, accurate and scalable, they also deliver on-the-spot performance that maximizes the integrity of the DOR system as a whole. As such, biometric technology is recognized as an important component in preventing identity fraud."

"We are delighted to be working with our partner Digimarc ID Systems, a recognized leader in digital identification solutions. There is a significant increase in interest for enhanced identification solutions at Departments of Motor Vehicles and beyond, and we intend on working very closely in pursuing these opportunities," he added.

About Digimarc

Digimarc Corp. (Nasdaq:DMRC), based in Tualatin, Ore., is the leading provider of digital watermarking components and technologies used in a wide range of security, identification and brand protection applications.

Digimarc ID Systems, LLC, based in Burlington, Mass., and a wholly owned subsidiary of Digimarc, is a leading global provider of secure and durable personal identification solutions. It is the leading producer of driver's licenses in the U.S. providing systems and services to 35 states. Internationally, Digimarc ID Systems produces identification documents for more than 65 governments around the world.

Digimarc has an extensive intellectual property portfolio, with 77 issued U.S. patents with more than 1,700 claims, and more than 300 pending applications for U.S. patents, in digital watermarking, personal identification and related technologies. Please go to www.digimarc.com for more company information.

About Identix Incorporated

Identix Incorporated (Nasdaq:IDNX), recently merged with Visionics Corporation, is the world's leading multi-biometric security technology company. The company's broad range of fingerprint and facial recognition technology offerings empower the identification of individuals who wish to gain access to information or facilities, conduct transactions and obtain IDs. Additionally, the company's products and solution offerings can help identify those who perpetrate fraud and otherwise pose a threat to public safety. Identix' products serve a broad range of industries and market segments -- most notably, government and law enforcement, aviation, financial, healthcare and corporate enterprise. In addition, the company's wholly owned subsidiary, Identix Public Sector, Inc. provides project management and facilities engineering services to the government sector.