A company that is involved in the production of two-thirds of all U.S. driver licenses has released a suite of services to help states comply with the REAL ID Act. Digimarc is offering services and solutions to address enrollment, breeder document validation, issuance, and more.

Digimarc Announces REAL ID Migration Services to Help State Driver License Customers Comply with Federal Legislation and Strengthen ID Security

Offered by the only Company in the world focused on the unique needs of the driver license market, Digimarc’s REAL ID Migration Services are available to State customers today

Beaverton, Ore. – Feb. 1, 2006 – Digimarc Corporation (NASDAQ: DMRC) today announced the availability of its REAL ID Migration Services, a set of new professional service offerings designed to provide State and jurisdiction driver license issuing agencies with the expert knowledge, best practices and advanced technologies needed to move toward compliance by May 2008 with the REAL ID Act.

Signed into law in May 2005, the REAL ID Act establishes minimum national standards for the issuance of U.S. driver licenses. For example, under REAL ID, States may be required to electronically capture, validate and archive breeder documents – such as out-of-state driver licenses, birth certificates or passports – presented as proof of an individual’s identity during the driver license application process.

Each State has a unique set of implementation tasks that must be accomplished for REAL ID compliance. Digimarc’s REAL ID Migration Services are designed to help driver license and identification document issuers successfully achieve REAL ID compliance at the lowest cost, with the least disruption to their customer service and operational objectives.

“I’m impressed by the expertise Digimarc’s REAL ID Migration Services team brings to State driver license issuing agencies faced with these new federal requirements,” said Kimberly Hinden, partner of HuB Consulting and the former Commissioner for the Massachusetts Registry of Vehicles (RMV). “By helping States examine the unique requirements of their current driver license systems and processes, identifying compliance gaps, and providing a tailored framework for complying with REAL ID requirements, Digimarc is an expert resource and partner for these agencies.”

“Digimarc is the leader in U.S. driver license solutions, having served the U.S. market for 47 years and helped our customers through every major transition in driver license issuance,” said J. Scott Carr, executive vice president, Digimarc Corporation. “Our intimate knowledge of the driver license agency environment and workflow enables us to offer our customers safe passage through another major transition in the driver license business.”

Digimarc’s REAL ID Migration Services team includes experts with decades of experience in driver license systems integration and infrastructure, professional services, workflow design, business rule automation, and more. Among Digimarc’s experts are a number of former senior officials of State and DMV agencies – key team members who have spent the majority of their careers delivering, operating and being responsible for their agency’s driver license solutions and who bring that knowledge and expertise to Digimarc’s customer engagements.

Digimarc REAL ID Migration Services include the following:

• Solutions for detailed process and workflow – from demographic data capture, document archiving and validation to secure card production, source verification and post-issuance credential verification
• Solutions for infrastructure and enrollment processes supporting secure driver license enrollment and production and seamless integration with a State’s IT systems, including automated business rules for workflow efficiencies, workflow optimization, and back office systems functionalities and applications
• Solutions for facilities security and secure inventory that ensure compliant driver license production, including facilities and physical security, employee background checks, Digimarc-owned central issue production facilities and material inventory control processes

Serving 32 U.S. driver license jurisdictions, Digimarc is the only company in the world focused on serving the driver license market and delivering solutions specifically designed to address all of the elements of the secure ID lifecycle – from the applicant enrollment and verification process, to secure driver license production and post-issuance validation.

For more information about Digimarc REAL ID Migration Services, please visit http://www.digimarc.com/secureid/realid.asp

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 230 issued U.S. patents with more than 5,000 claims, and more than 400 pending 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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