Florida to Award Digital Image Driver License System Contract to Digimarc

    BEDFORD, Mass.--July 23, 2002--Digimarc ID Systems, LLC, a wholly owned subsidiary of Digimarc Corporation , announced today that the State of Florida has given notice of its intent to award the state's digital drivers license contract to Digimarc ID Systems.

    For more information, see

http://fcn.state.fl.us/owa_vbs/owa/vbs_www.ad.view_ad? advertisement_key_num=28535.

    Under the terms of the bid and intent to award, the term of the contract would run approximately five years from the date of implementation, with an option to extend another five years.
    The final award and contract are subject to a number of contingencies, including, among others, the protest allowed under state law to challenge the intent to award, the resolution of the protest by another vendor in favor of Digimarc ID Systems, and negotiation and execution of a formal contract between the state and Digimarc ID Systems. Other issues that could affect the successful closing and implementation of the contract include funding being provided by the Florida legislature, the posting of a bond, satisfactory performance, and similar contingencies.

    About Digimarc

    Digimarc Corporation , based in Tualatin, Ore., is the leading provider of digital watermarking components and technologies used in a wide range of security, identification and brand protection applications.
    Digimarc ID Systems, LLC, based in Bedford, Mass., and a wholly-owned subsidiary of Digimarc Corporation, is a leading global provider of secure and durable personal identification solutions, and is the leading producer of drivers licenses in the U.S., providing systems and services to 36 states. Internationally, the Digimarc ID Systems business produces identification documents for governments around the world.
    Digimarc has an extensive intellectual property portfolio, with 65 issued U.S. patents with more than 1,400 claims, and more than 300 pending applications for U.S. patents, in digital watermarking, personal identification and related technologies. Please go to www.digimarc.com for more company information.

    Securities Safe Harbor

    With the exception of historical information contained in this release, the matters described herein contain certain "forward-looking statements," including among others the anticipated results of, and contingencies relating to, a final contract with the State of Florida, that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current reasonable expectations and 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 potential actions or inaction by the State of Florida or competitors with regard to the intent to award and subsequent contracting process, the effect of any anticipated contingencies on the award and contracting process and changes in economic, business, competitive, technological and/or regulatory factors. More detailed information about these factors is set forth in filings by Digimarc with the Securities and Exchange Commission, including the most recent annual report on Form 10-K and the most recent quarterly report on Form 10-Q. Digimarc is not obligated to (and expressly disclaims any obligation to) revise or update any forward-looking statements in order to reflect events or circumstances, whether they arise as a result of new information, future events, or otherwise.