New release includes Chroma technology and new Professional Edition with watermark embedding and online searching of images for only $99

Beaverton, Ore. — February 16, 2010 — Digimarc Corporation (NASDAQ: DMRC) today announced three new editions of its popular Digimarc for Images product, all of which feature advanced "Chroma" technology that provides an easy, reliable means for image professionals and small businesses to communicate their ownership and usage rights wherever their valuable photos and other image assets are found across the Internet. The new Chroma technology enables highly robust, pervasive, and imperceptible digital watermarks to be embedded into images such as digital photographs, illustrations, artwork — persisting through a variety of file manipulations and transformations — all without affecting the quality of the image or the enjoyment of its viewers.

Digital watermarks are easily embedded and read using Adobe® PhotoShop® and Photoshop Elements, the most commonly-used image editing software in the world. A free browser plug-in is also available for Windows XP, Windows 7, and Vista users, which automatically detects watermarked images while surfing the web.

"I really like the new Chroma technology because I can apply the most durable watermark and it never degrades the quality of the image," commented Dennis Novak, a photographer and digital artist who is a Professional Edition customer. "I have been tagging my images with Metadata for some time now and am well aware of the drawbacks of being able to easily strip away this data, especially by simply copying an image with "screen grabs". With a digital watermark, I'm confident that my ownership information will persist with the image."

In addition to the superior new technology, Digimarc introduced three new product editions: Basic, Professional and Small Business. Previously online image search was only available at a $499 price point, but due to sizeable customer demand, Digimarc is now making its Search Service more broadly available to the Professional Edition customers for $99.

"The online Search Service is an important tool for image professionals wanting to know where their images are being used on the web," said Jeri Owen, vice president of marketing. "We recognized this and are very excited to be able to offer the Professional edition at a price that is more accessible to our customers. This edition allows for up to 2,000 images a year to be digitally watermarked and provides monthly reports on where these images appear online — it's a great value."

The Digimarc for Images customer portal has also undergone a major upgrade, and now allows customers to easily access account information, promotions, search reports, educational resources, video tutorials and more. The new web site provides everything customers need to ensure their success with the product.

The three editions of Digimarc for Images include:

• Digimarc for Images — Basic Edition enables users to embed up to 1,000 digital watermarks each year. The watermark contains information on the owner and usage rights, as well as the capability to link users to the owner's website. Retail price is $49/year.

• Digimarc for Images — Professional Edition is for customers who also want to track where their photos are being used on the Web. The service allows for up to 2,000 images a year to be digitally watermarked and provides access to detailed reports on where the customer's images were found online. Retail price is $99/year.

• Digimarc for Images — Sm
  all Business Edition provides watermark embedding for up to 5,000 images, an enhanced Search Service ÿ which includes a directed search option — and a host of additional features and services, such as premium support by phone. Retail price is $499/year.

ABOUT DIGIMARC
Digimarc Corporation (NASDAQ:DMRC), based in Beaverton, Oregon, is a provider of enabling technologies that create digital identities for all forms of media and many everyday objects that are imperceptible to humans, but not to computers. These technologies help computers to better process sensory data as the industry evolves toward more intuitive and pervasive computing. For more information, please visit us at www.digimarc.com to learn more.