Government ID, Smart Cards, Identification and Authentication

Latvia Awards Driver License Contract to Digimarc

Friday, February 13, 2004

Latvia to be the first European driver license to incorporate Digimarc IDMarc™ security features

Tualatin, OR – Feb. 13, 2004 – Digimarc Corporation (NASDAQ: DMRC) today announced that the Road Traffic Safety Directorate (RTSD) of Latvia has awarded the country’s new digital driver license contract to Digimarc. The estimated value of the five-year contract is $9 million.


Under the terms of the bid and contract award, Digimarc will be the prime contractor responsible for design, installation, maintenance and servicing of the system. Digimarc will also be responsible for supplying materials and enhanced security features such as Digimarc IDMarc digital watermarking and a 2-D Kinegram®; a materials tracking and management system; and inkjet printing technology that will provide for secure, high-quality personalization and production of Latvian driver licenses and driving learner permits.

“We are very pleased by Latvia’s decision to award its next-generation driver license system contract to Digimarc,” said Piet Lesage, vice president, worldwide sales, Digimarc ID Systems. “We are looking forward to partnering with the Road Traffic Safety Directorate of Latvia on this initiative and helping Latvia develop a digital driver license system that is state of the art in security and cost effectiveness.”

“We selected Digimarc ID Systems as the provider of Latvia’s new EU-style driver licenses as Digimarc offered the best package in terms of quality, customer service and price,” said Andris Lukstins, director of the Road Traffic Safety Directorate. “The new solution provided by Digimarc will not only incorporate state-of-the-art security features but will also allow us to serve our customers in a very fast and efficient way.”

Digimarc currently provides secure driver license solutions for 32 U.S. states and internationally in Europe, Africa, Latin America and Asia in such countries as the United Kingdom, Russia, New Zealand, Philippines, Costa Rica, Botswana as well as several Canadian Provinces.

www.digimarc.com

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