PRESS RELEASE

Digimarc and Mobile Data Systems Announce Growing Momentum
for Digital Watermarking-Based Print-to-Web Solutions

Companies Extend Relationship with New 10-Year Agreement

May 6, 2008

Beaverton, OR and Nesconset, NY – Digimarc Corporation (NASDAQ: DMRC) and Mobile Data Systems, Inc. (MDS) today announced they have signed a 10-year extension to their existing licensing agreement amidst growing interest in solutions that give camera phone users a convenient way to link from encoded print materials to associated sites and services on the Internet.

MDS, a leading provider of encoding technologies designed for mobile interactivity and a Digimarc Mobile partner since 2006, has developed a universal visual search decoder that can be integrated into mobile devices to read digital watermarks.

“We are pleased to see the demand Mobile Data Systems is creating for print-to-web and visual search applications based on Digimarc’s core technology. Digital watermarking offers an easy way for mobile users to interact with traditional print media, such as advertisements, brochures and packaging,” said Stuart Rosove, General Manager, Media & Entertainment, Digimarc. “We are happy to support MDS’ business development efforts with this extended licensing agreement.”

”MDS is bringing visual search to the consumer market by enabling the interaction between printed media and web-based content,” explains Joseph Spiteri, Founder and CEO of Mobile Data Systems. “We see digital watermarking as the optimal technology to provide this connection and recent improvements to camera phone optics are enabling this interaction to come into focus today. This is clearly the solution to mobile marketing’s call-to-action.”

Mobile Data Systems has already entered into partnership agreements with some of the world’s largest and most innovative consumer product packaging firms, including Marietta, Georgia-based Graphic Packaging International, Inc., to drive adoption of Digimarc’s encoding technology, helping create a visual search market for consumers to interact with enabled packaging solutions.

Using Digimarc Mobile technology, machine-readable digital watermark data that is not visible to users is incorporated into printed materials – magazines, signs, catalogs, and entertainment and consumer packaging – and “read” by enabled mobile imaging devices, such as camera phones and PDA/smart phones, to automatically deliver valuable mobile content and e-commerce opportunities to consumers.

Digimarc Mobile solutions, which are recognizable by the “Digimarc Enabled” icon, are also being deployed by partners in Asia and Europe representing some of the world’s most advanced mobile economies. For more information, please visit: http://www.digimarc.com/comm/mobile.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 annual production of more than 60 million personal identification documents, including two-thirds of U.S. driver licenses and IDs for more than 25 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 360 issued U.S. patents with more than 7,500 claims, and more than 500 pending U.S. and foreign 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.

About Mobile Data Systems

Mobile Data Systems, Inc. is a privately held company based in Nesconset, on Long Island, New York that is committed to creating the interactive link between traditional media and its target audience. Using bar code and digital watermark encoding technologies with industry standard mobile devices and cell phone platforms, Mobile Data Systems is enabling consumers to interact with product packaging, printed advertisement, and a growing list of other printed media. Businesses are better able to reach, attract and increase the responsiveness to their brands and advertising initiatives using interactive campaigns that are redefining how the world markets products and services in the age of mobility.

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. Such forward-looking statements include statements containing the words "believes," "expects," "estimates," "anticipates," "will" or words of similar import or statements of management's opinion. These statements 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 risk factors that may affect actual results is set forth in filings by Digimarc with the Securities and Exchange Commission on Forms 10-K, 10-Q and 8-K, including but not limited to those described in the Company's Form 10-K for the year ended December 31, 2007 in Part II, Item 7 thereof ("Management's Discussion and Analysis of Financial Condition and Results of Operations") under the captions "Liquidity and Capital Resources" and "Factors Affecting Forward Looking Statements" and in Part II, Item 9A thereof ("Controls and Procedures"). 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, we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements.

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For more information:

MDS Public Relations

631-360-3400
sales@mobiledatasys.com