Digimarc Licenses Audio Watermarking Patents to Activated Content.

Entertainment Editors

TUALATIN, Ore.--(ENTERTAINMENT WIRE)--July 22, 2002

License Supports Activated Content's Audio Watermarking Solutions for

Tracking Use of Pre-Release Music

Digimarc Corp. (Nasdaq:DMRC), the leader in digital watermarking solutions, announced

today that it has signed a multi-year licensing agreement with Activated Content Corp., an emerging digital technology and application services company that is developing tracking, anti-piracy, and other support solutions for the music industry based on its proprietary and highly advanced audio watermark technologies.

Under the non-exclusive agreement, Activated Content will license Digimarc audio watermarking patents in order to develop and market applications that can be integrated with the music industry's existing production infrastructure and can enable forensic tracking and enhancement of pre-released music content.

Increasingly, pre-release copies of music distributed by record companies for promotional purposes are finding their way onto file sharing networks or other parts of the Internet. The Activated Content solution is designed to help record companies identify and track leaks of promotional music by embedding a digital watermark into the audio content as a forensic identifier, as well as link audio content to the most up-to-date promotional material for the authorized recipient.

"The unauthorized distribution and use of valuable content before official release is a major issue facing the entertainment industry today, and one that digital watermarking can help solve," said Reed Stager, vice president and general manager, Digimarc Global Licensing. "We are very pleased that Digimarc's audio watermarking patents will help Activated Content provide the music industry a useful forensic tracking application to help address this problem, and we look forward to working with this emerging company on future technology solutions for the entertainment market."

"Activated Content was established to support the entertainment industry's migration to digital distribution, and is now partnering with leaders in the industry to create new online models that protect and grow revenues. Our relationship with Digimarc, the leader in digital watermarking technology, enhances Activated Content's position by allowing us to blend our highly advanced and best of breed audio watermark technology with their expertise and intellectual property. We are excited about the partnership, and look forward to a long and mutually beneficial relationship that produces practical and effective solutions for our customers," said Stuart Rosove, CEO, Activated Content Corp.

About Digimarc

Digimarc Corp. (Nasdaq:DMRC), 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, 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, Digimarc ID Systems 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.

About Activated Content

Founded in 2001 and headquartered in Burlingame, Calif., Activated Content is an emerging Digital Technology and Application Services Partner that enables Entertainment and Media Companies to enhance their products, increase customer interaction and develop new profit centers. The Company's first major application is a forensic, high-end serial watermarking application for the Music Industry. Privately held, Activated Content has one patent pending.

Securities Safe Harbor

With the exception of historical information contained in this release, the matters described herein contain certain "forward-looking statements" 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 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.