Digimarc ID Systems Wins Tennessee Contract; Digimarc ID Systems to Supply Tennessee with Second-Generation Digital License and New Point-of-Sale Systems

Business Wire, March 14, 2002

Business Editors, Technology Writers

BEDFORD, Mass.--(BUSINESS WIRE)--March 14, 2002

Digimarc ID Systems, LLC, a wholly owned subsidiary of Digimarc Corp. (Nasdaq:DMRC), announced today a five-year contract with the Tennessee Department of Safety to develop and deploy the state's second-generation digital driver license program.

Digimarc ID Systems, the leading producer of drivers licenses in the U.S., was awarded the contract on Feb. 19, after meeting the state's requirements in an invitation to bid (ITB) process. Tennessee issues 1.4 million driver licenses annually.

As part of the contract, Digimarc ID Systems, together with its strategic partner Infocorp Computer Solutions Ltd. (TSE:INP), will implement an integrated service delivery and point-of-sale system to more than 100 of the Department's in-state locations. Infocorp is a leader in the design and delivery of point-of-service cashiering and multi-channel revenue management solutions for e-government and integrated retail management solutions for retailers.

The system designed for Tennessee will allow fees to be automatically calculated based on the type of card application processed, enable Department employees to process payments by credit card, as well as cash and checks, automate the reconciliation processes, and provide centralized reporting.

The system also interfaces with 230 examiner workstations across the state for complete reconciliation of accounts. The total solution will enhance customer service by providing accurate measures with a quick delivery through the entire driver license process and help automate workflow in the back office.

In addition to point-of-sale, the Tennessee driver license system will employ Digimarc ID Systems' "find-a-face" software to ensure accurate image capture and placement of images on each license, ensuring consistency across the system.

"Our goal with this second-generation digital license issuance system is to offer better customer service at all of our locations, as well as to improve our financial and audit capabilities through new technology," said Denny King, commissioner, Tennessee Department of Safety. "With new state-of-the-art equipment and the expertise of Digimarc ID Systems and its suppliers, we're confident that both our customers and the state will benefit."

"As the prime contractor for Tennessee's eDMV environment, Digimarc ID Systems is able to offer a full range of capabilities that support the Department's objectives," said John Munday, president, Digimarc ID Systems. "We are delighted that Tennessee selected Digimarc ID Systems again to help it build and maintain its digital driver license system and pleased that Tennessee has selected Digimarc to implement three consecutive generations of driver license technology over the past 19 years."

Point-of-sale is one of several customer service-focused applications that Digimarc ID Systems offers customers who want to build an integrated eDMV environment using one supplier. Other eDMV applications offered by Digimarc ID Systems, together with its partners, include vehicle registration print-on-demand solutions, knowledge testing, vision screening and other services used to support state motor vehicle agencies.

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, based in Bedford, Mass., a wholly owned subsidiary of Digimarc, is a leading global provider of secure and durable personal identification solutions, and is the leading producer of drivers licenses in the U.S., providing systems and services to 37 states. Internationally, Digimarc ID Systems produces identification documents for governments around the world.

Digimarc has an extensive intellectual property portfolio, with 53 issued U.S. patents with more than 1,000 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.

Securities Safe Harbor

This press release contains 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 are subject to certain assumptions, risks and uncertainties. Although Digimarc believes that the expectations reflected in its forward-looking statements are reasonable, actual results could differ materially from those expectations or from historical results. Important factors that could cause such differences include without limitation changes in customer needs and expectations, vendor relationships, governmental actions and other factors detailed in Digimarc's Annual Report on Form 10-K for 2000 and its most recent Quarterly Report on Form 10-Q, each as filed with the Securities and Exchange Commission. Digimarc is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.