Digimarc and Cinea Sign Patent Licensing Agreement for Forensic Tracking; New License Supports Effort to Deliver Expanded Forensic Watermarking Solutions for the Motion Picture and Television Industries

Business Wire, Oct 20, 2005

BEAVERTON, Ore. -- Digimarc Corporation (NASDAQ:DMRC) today announced a multi-year patent licensing agreement with Cinea, Inc., a Dolby company. The agreement facilitates the expansion of Cinea's current digital watermarking business to offer a more complete range of solutions for protecting the management and distribution of digital movie content.

The non-exclusive license to Digimarc's digital watermarking patents allows Cinea to provide a wide range of forensic tracking solutions to meet the varying needs of its industry customers. The agreement supports Cinea's innovative Running Marks(TM) forensic watermarking offerings and Cinea's commitment to provide the motion picture and television industries the most complete and robust digital video content protection available.

"Digimarc is very excited about this new partnership with Cinea, one of the leading players in deploying digital video protection systems," said Reed Stager, executive vice president, Digimarc. "Cinea is bringing new technologies and approaches to helping its media and entertainment customers better manage and track content, and we look forward to working with them to expand the market opportunity for digital watermarking applications."

"Access to Digimarc's digital watermarking technologies is key to expanding our portfolio of digital video content protection systems," said Robert Schumann, general manager, Cinea. "We are pleased to have established this new relationship with Digimarc, one of our fellow pioneers in digital watermarking innovation, and appreciate their support as we move forward with delivering a comprehensive set of forensic watermarking products and services to the media and entertainment industry."

About Digimarc

Digimarc Corporation (NASDAQ:DMRC), based in Beaverton, Oregon, is a leading supplier of secure identity and media management solutions. 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 more than 200 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. Digimarc is headquartered in Beaverton, Oregon, with other U.S. offices in Burlington, Massachusetts; Fort Wayne, Indiana; and the Washington DC area; and international offices in London and Mexico. Please go to www.digimarc.com for more company information.

About Cinea

Cinea, a subsidiary of Dolby Laboratories, is a leading provider of antipiracy solutions for the motion picture and television industries. Cinea has developed an integrated set of security solutions that provide a complete, highly robust digital video content protection system, including encryption, key management, business rule enforcement, fingerprinting, and secure logging and auditing. For more information about Cinea or Cinea products, please visit www.cinea.com.

Running Marks is a trademark of Cinea, Inc.

Securities Safe Harbor

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 containing the words "believes," "expects," "estimates," "anticipates," "will" or words of similar import or statements of management's opinion. These statements, including statements regarding the functionality and capabilities of Cinea's digital watermarking technology, the expansion of Cinea's business, and the potential benefits to the motion picture and television industries of these products and technologies, 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 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 Digimarc's Securities and Exchange Commission filings and reports, including but not limited to those described in Digimarc's report on 10-Q for the quarter ended June 30, 2005, in Part I, Item 2 thereof ("Management's Discussion and Analysis of Financial Condition and Results of Operations") under the caption "Risk Factors," and in Dolby's Securities and Exchange Commission filings and reports, including its report on Form 10-Q for the quarter ended July 1, 2005. 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, neither Digimarc, Cinea, nor Dolby undertake any obligation to revise or publicly release the results of any revision to these forward-looking statements.