Web-based service allows publishers and advertisers to engage audiences through enhanced content and interactive advertising

Beaverton, Ore — February 14, 2011 — Digimarc Corporation (NASDAQ: DMRC) today launched the Digimarc Discover™ Online Services Portal (OSP), completing the Digimarc Discover Platform which now includes easy, affordable embedding of digital watermarks into magazines, newspapers, and other print publications to create many new rich media experiences on today’s popular smartphones. For a limited time, anyone can access and use basic functions within the portal at no charge during an open beta period, which begins today and ends May 31, 2011.

The Digimarc Discover Platform delivers the means to embed digital watermarks into printed materials, detect them on various mobile devices, and provides a backend routing and reporting system to support a range of applications and campaigns.

The Digimarc Discover OSP is a web-based service for newspaper and magazine publishers, marketers, and advertisers to link articles and advertisements to enhanced content, interactive ads and many other multi-sensory experiences. Digital watermarks embedded via the OSP can easily be detected by consumers using the Digimarc Discover mobile application available for download from iTunes or the Android Market, as well as a number of third party mobile applications that include the Digimarc Discover feature, such as Clic2C, Winkcode, Print2Web, eMotion Mobile, and iClic.

The Digimarc Discover OSP is the first offering of its kind, and the only service to enable the embedding of digital watermarks into publications to deliver enriched content on smartphones. Consumers can’t see them, but camera-equipped mobile devices can. Digital watermarking differs from other technologies such as 2D barcodes or QR codes because they do not occupy valuable real estate on printed content and do not negatively impact the design or overall aesthetics of the layout.

"The Digimarc Discover Platform provides a simple, yet powerful way to help transform media industries by giving publishers and their advertisers the ability to connect readers to a wealth of digital content and interactive experiences that increase consumer engagement and brand loyalty," said Bruce Davis, Chairman and CEO of Digimarc.

The OSP allows new users to setup an account within minutes. Once logged on, it’s a quick and simple process to begin embedding digital watermarks into printed content, with very little impact on workflow.

"With our technology, there is no need for the user to take a picture, email it off, and wait for a response, as in some approaches," stated Jeri Owen, Vice President of Marketing. "No big, ugly barcodes either. Consumers simply launch the app and point it at the watermarked content they are interested in. It's that easy."

THE DIGIMARC DISCOVER PLATFORM
The Digimarc Discover Platform includes: the Digimarc Discover Online Services Portal, Digimarc Discover Mobile Applications, and the Digimarc Discover Routing and Reporting System.

The OSP offers a wide range of features and benefits that include:

• A web-based interface that is easy to access and use, minimal change to the existing workflow

• The ability to create interactive print in seconds, with no impact to the design or page layout

• Ongoing access to download data and metrics that are vital and valuable to increasing readership or to making immediate changes to marketing and advertising campaigns as they are in progress

• An affordable, yet powerful way to attract new readers and engage consumers

PRICING
The Digimarc Discover Online Services Portal also introduces a game-changing pricing model with a small pay-per-link fee that starts at just $4.99 for a two week length of service. There are no upfront fees or annual minimums. Payment can be made by credit card, or for publishers and companies with higher usage volumes, business accounts may be established for monthly invoicing. Separate pricing is available for free-standing inserts and direct mail where very large volumes are being distributed.

Digimarc continues to invest in mobile research and has a working prototype that is able to recognize all forms of digitally watermarked media content including audio and video — as demonstrated in this video, showing additional capabilities that it anticipates will become part of the Digimarc Discover platform.

Companies interested in learning more about digital watermarking technology and licensing opportunities for the Digimarc Discover platform can visit: www.digimarc.com/Discover

ABOUT DIGIMARC
Digimarc Corporation (NASDAQ:DMRC), based in Beaverton, Oregon, is a leading innovator and provider of enabling technologies that create digital identities for all forms of media and many everyday objects. The embedded digital IDs are imperceptible to humans, but not to computers, networks and devices like mobile phones, which can now use cameras and microphones as sensory inputs to "see, hear and understand" the world around them within the context of their environment. Digimarc has built an extensive intellectual property portfolio with patents in digital watermarking, content identification and management, media and object discovery to enable ubiquitous computing, and related technologies. Digimarc develops solutions, licenses its intellectual property, and provides development services to business partners across a range of industries. For more information, please visit www.digimarc.com.

FORWARD-LOOKING STATEMENTS
With the exception of historical information contained in this release, the matters described in this release contain various "forward-looking statements." These forward-looking statements include statements regarding potential uses of Digimarc Discover, time and functionality of future releases of Digimarc Discover, ease of use and investment in mobile research and development and other statements regarding pricing and limited time offers, identified by terminology such as "will," "should," "expects," "estimates," "predicts" and "continue" or other derivations of these or other comparable terms. These forward-looking statements are statements of management's opinion and are subject to various assumptions, risks, uncertainties and changes in circumstances. Actual results may vary materially from those expressed or implied from the statements in this release as a result of delayed market acceptance, failure to secure commercial partners to help address specific markets or functionality, development delays, or changes in economic, business and/or regulatory factors. More detailed information about risk factors that may affect actual results is set forth in the Company's Form 10-K for the year ended December 31, 2009 and in subsequent periodic reports filed with the SEC. 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, Digimarc undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this release.