Digimarc Partners with AAMVA and Six States on Program to Address Identity Theft in Driver License Applications

Business Wire, August 9, 2007

The Digital Image Exchange Program (DIEP) Enables Participating States to Reduce Fraud in Out-of-State Driver License Applications and Enhance Citizen and Transportation Safety

BEAVERTON, Ore. -- Digimarc Corporation (NASDAQ:DMRC) today announced a cooperative program between the Company, the American Association of Motor Vehicle Administrators (AAMVA) and six driver license issuers to reduce fraud in out-of-State driver license applications.

The goal of the Digital Image Exchange Program (DIEP) is to help States enhance transportation safety and deter driver license fraud associated with individuals trying to apply for a license in a State using a stolen identity or counterfeit ID purportedly from another State. This program will allow limited sharing of driver license photos among participating States, Digimarc customers and all other States, to reduce fraud risks in the application process.

"This program is an example of how States are taking advantage of market-leading solutions in applicant screening to improve transportation safety and make sure that identity thieves cannot obtain a valid license in another State using someone else's identity or information," said Andy Mallinger, senior director, product management, Digimarc. "The program provides an effective way for State driver license issuers to work together to reduce criminal activity and help make our citizens safer."

Colorado, Idaho, Nebraska, Nevada, Vermont and Wyoming are participating in a year-long introductory phase of the program. AAMVA will provide the secure network to facilitate the transfer of digital images, as well as ensure uniformity across States. Digimarc is providing the image-sharing software and technology to facilitate sending out requests, retrieving images and providing images to issuers for comparison with the person applying for a new license.

"Motor vehicle agencies across the country have a long history of cooperating on technology initiatives and best practices in driver license security," said Deb Hillmer, chair, AAMVA Board of Directors. "We are delighted to be working with Colorado, Idaho, Nebraska, Nevada, Vermont, Wyoming, and Digimarc on this exciting program, which highlights the value of interstate information exchange in enhancing citizen safety."

The results of the collaborative effort--which is being managed by AAMVA with oversight by the National Highway Transportation Safety Administration (NHTSA), and funded with appropriations from Congress--will determine the feasibility of offering the associated protocols and technology links to other motor vehicle agencies in North America to help reduce fraud risks in the application process.

Participants have agreed to stringent privacy guidelines that take into account the relevant State and federal laws and regulations and minimize the risk of any accidental or intentional breaches of privacy. Digital watermarking will be used in the exchanged images to enable follow-up audits as further protection against any potential misuse of the data.

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 annual production of more than 60 million personal identification documents, including two-thirds of U.S. driver licenses and IDs for more than 25 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 300 issued U.S. patents with more than 6,000 claims, and more than 500 pending U.S. and foreign 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 DC area; and international offices in London and Mexico. Please go to www.digimarc.com for more company information.

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