Digimarc Acquires Attributor Corporation

Beaverton, OR. December 3, 2012 — Digimarc Corporation has acquired privately-held Attributor Corporation, the global leader in protecting eBooks from online piracy. Attributor's Guardian software and services protect book revenues and authors' rights by finding, reporting on, and assisting in removing pirated content found on the Internet. Attributor's customers include the world's largest and most prominent publishers.

Online book piracy is a growing and global problem. With emerging eBook standards and the growing popularity of iPads, Kindles and other e-readers, book piracy is expected to grow dramatically in 2013 and beyond. A 2012 study completed by Attributor Corporation estimates that up to 3 million people search daily for unauthorized downloads of the top 90 books on Amazon.com, leading to potential revenue losses from piracy of approximately $3 billion annually.

According to Digimarc CEO Bruce Davis, "We are very excited about having Attributor become part of Digimarc. The multi-billion dollar ebook market is young, and growing rapidly, and requires solutions for protection and analytics. Attributor has a great team who are building a promising business in this high growth market, and possess complementary technical skills and market knowledge that will dovetail nicely with our existing organization. We expect the acquisition to provide many strategic and financial benefits."

Matt Robinson, CEO of Attributor added, "We are thrilled to be part of the Digimarc team and look forward to leveraging new technologies to deliver further value to our clients. We were particularly impressed with Digimarc's long history of innovation and its values. Our employees are enthusiastic about our combined potential and working together to foster growth in shareholder value."

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.