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West Virginia Fights Driver License Fraud with Facial Recognition ID

    TUALATIN, Ore.--Jan. 9, 2002--

West Virginia DMV Enhances License Issuance Program With FaceIt(R) Technology to Eliminate Identity Fraud and Duplicates

    Digimarc ID Systems, a wholly owned subsidiary of Digimarc Corporation , and Visionics Corporation , the worldwide leader in identification technologies and systems, today announced that the West Virginia Department of Motor Vehicles is enhancing its second-generation digital driver's license issuance program with a pilot project using FaceIt(R) technology developed by Visionics and implemented by Digimarc ID Systems.
    A customer of Digimarc ID Systems (formerly Polaroid ID Systems) for several years, West Virginia issues 500,000 driver licenses annually.
    Under the license issuance program, when first-time driver license applicants apply for a West Virginia license, the system compares their facial image against the 2 million DMV records on file in an effort to quickly identify potential duplicates and aid in subsequent investigations of identity fraud.
    "Digimarc ID Systems have been producing our driver licenses since 1997. Over the years, they have been more to us than just a dependable supplier of imaging systems and software. They have helped us emerge as a technology leader," said David Bolyard, director of driver services in the state. "We are the first state in the nation to use facial recognition software and the first to extend our driver license system to include a statewide Child ID program. The new FaceIt(R) facial recognition component will help us know that our efforts to eliminate fraudulent and duplicate registrations are effective. Digimarc ID Systems' long experience with identification technologies is a valuable asset for us."
    "The unique combination of facial recognition technology from Visionics and secure identity documents from Digimarc ID Systems allows West Virginia to ensure that their driver licenses are issued to the right person," said John Munday, president, Digimarc ID Systems. "We're pleased to support the state in ensuring the integrity and security of its license system and in protecting the citizens of West Virginia from identity theft and financial crimes related to identity fraud."
    Munday continued, "With the ability to now offer our customers digital watermarking solutions from our new parent company, Digimarc, we look forward to working with Visionics to explore applications for combining biometrics and digital watermarking to further enhance the security of identity documents."
    Dr. Joseph J. Atick, chairman and CEO of Visionics stated, "We applaud the steps that West Virginia has taken in the fight against crime and identity theft. FaceIt technology is a proven, important component of this process as it is not only fast, accurate and scalable, it delivers on-the-spot performance that maximizes the integrity of the DMV system as a whole."
    "We are delighted to be working with our new partner Digimarc, a recognized leader in digital watermarking and security applications. In this new security-conscious climate, there is a significant increased demand for enhanced identification solutions and we intend on working very closely in pursuing these opportunities," he added.

    About Digimarc

    Digimarc Corp. , based in Tualatin, Ore., is the world leader in digital watermarking solutions. Digimarc's patented digital watermarking technology is used in a range of solutions for brand protection, brand management and security applications. The technology allows digital data to be embedded imperceptibly in traditional and digital media content including photographic or artistic images, movies, music, packaging, printed materials, promotional items, value documents, tickets and holograms, among others. The company continues to build a pervasive new communications platform by developing an increasing array of diverse product offerings. These offerings benefit a broad range of consumers, corporations and government institutions, enhancing the protection of copyrights, the security of value documents and the management of media and fostering integrated marketing and e-commerce for many goods and services. Digimarc's leading customers include creative professionals, major media companies and central banks.
    Digimarc ID Systems is the leading producer of driver licenses in the U.S., providing systems and services to 37 states. Internationally, Digimarc ID Systems produces identification documents for governments in various countries around the world.
    Digimarc has a broad and deep digital watermarking technology portfolio, with more than 270 pending and 37 issued U.S. patents. Digimarc's vision is to have its watermarking technology become a standard feature of all media content. Please go to www.digimarc.com for more company information.

    About Visionics

    Visionics Corporation is the worldwide leader in identification technologies and systems. The Company is uniquely positioned with a comprehensive set of biometric identification product offerings: FaceIt(R), live scan, IBIS and BNP. The award-winning core FaceIt(R) technology enables a broad range of products and applications built by partners (OEMs, VARs and system integrators). These include enhanced CCTV systems, identity fraud applications, and identity verification systems for physical and network security, travel and banking. The TENPRINTER, FingerPrinter CMS and Modular live scan systems are the most widely used by government agencies, law enforcement, airports, banks and other commercial institutions in the United States. IBIS is a revolutionary mobile identification system capable of capturing both forensic quality fingerprints and photographs for transmission and wireless transmission of data to law enforcement and other legacy databases for real-time identification. Finally, the BNP is the only commercially available platform for delivering scalable biometric solutions. It incorporates FaceIt(R) technology for implementation over large-scale networks and real-time identification. The product offerings are reflective of Visionics' leadership position in the biometric industry and commitment to the innovation of identification technologies.
    More information on Visionics can be accessed via the Company web site at http://www.visionics.com or by calling Frances Zelazny, Director of Corporate Communications at 201/332-9213.

    Securities Safe Harbor

    This press release contains 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 are subject to certain assumptions, risks and uncertainties. Although Digimarc believes that the expectations reflected in its forward-looking statements are reasonable, actual results could differ materially from those expectations or from historical results. Important factors that could cause such differences include without limitation changes in customer needs and expectations, and governmental actions and other factors detailed in Digimarc's Annual Report on Form 10-K for 2000 and its most recent Quarterly Report on Form 10-Q, each as filed with the Securities and Exchange Commission. Digimarc is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.