LOS ANGELES, CA--(Marketwire - August 5, 2008) - Digimarc Corporation announced on Monday, August 4, 2008 the spin-off of its Watermarking Business and the successful tender of the initial offering period for the purchase of its Secure ID Business by L-1 Identity Solutions, Inc. Prior to the transaction, Digimarc was a leading supplier of secure identity solutions, providing products and services that enabled the annual production of more than 60 million personal identification documents, including ID solutions for more than 25 countries. Imperial Capital acted as financial advisor to Digimarc Corporation. Jay Beaghan, Managing Director within Imperial's Investment Banking Security Team, led the engagement.

L-1 Identity Solutions, Inc., together with its portfolio companies, offers a comprehensive set of products and solutions for protecting and securing personal identities and assets. Leveraging the industry's most advanced multi-modal biometric platform for finger, face and iris recognition, its solutions provide a circle of trust around all aspects of an identity and the credentials assigned to it -- including proofing, enrollment, issuance and usage. With the trust and confidence in individual identities provided by L-1 Identity Solutions, government entities, law enforcement and boarder management agencies, and commercial enterprises can better guard the public against global terrorism, crime and identity theft fostered by fraudulent identity.

Digimarc Corporation, based in Beaverton, Oregon, remains a leading innovator and technology provider, enabling businesses and governments worldwide to enrich media content by giving persistent digital identities to all forms of media and objects. The company's technology is an essential component of solutions for enhancing traffic safety and national security, deterring fraud, counterfeiting and piracy, and enabling new digital media distribution and monetization models that provide consumers with more choice and access to content when, where and how they want it. Digimarc licenses its intellectual property to business partners across a range of industries, delivers solutions for protecting and managing digital images, and offers professional development services to bring strategic initiatives to market.

Headquartered in Los Angeles, California, and with offices in New York and San Francisco, Imperial Capital, LLC is a full-service investment bank focused on providing transaction advisory services to the security and security-related products industries.

For more information on Imperial Capital, LLC, please visit: www.imperialcapital.com

For more information on L-1 Identity Solutions, Inc., please visit: www.l1id.com

For more information on Digimarc Corporation, please visit: www.digimarc.com

Contact Information: CONTACT: Jay Beaghan (310) 246-3716