TUALATIN, OR - June 20, 2001 - Digimarc Corporation (NASDAQ: DMRC), the world leader in digital watermark technology and applications, today announced a partnership with Daniels Graphics. The southeastern sheet-fed printer joins the growing list of printers nationwide, offering Digimarc's patented MediaBridge™ technology to their customers for use in product packaging, catalogs and other marketing materials. Daniels Graphics will embed imperceptible digital watermarks in printed materials during prepress file preparation for the company's home furnishings and industrial product customers. Using Digimarc MediaBridge-enabled Web cameras or in-store kiosks, both consumers and merchandisers can then jump directly from catalogs, product packaging and brochures to informational Web pages. "Daniels Graphics is aggressively marketing Digimarc MediaBridge to our widespread customer base," Daniels Graphics CEO James W. Daniels said. "Digimarc's technology integrates our customers' printed materials with their Internet efforts. This integration leverages both investments and provides multiple distribution channels for marketing communications. Customers are inquiring about Digimarc MediaBridge for direct-mail programs, security applications, in-store promotions and smart packaging. We believe that it has enormous potential, especially with the next generation of personal communications and computers right around the corner." One customer planning to incorporate Digimarc's technology is Alcoa Fujikura Ltd. (AFL), which provides fiber optic cabling for the automotive and telecommunications industries. These products typically have complex, fluctuating product specifications and pricing structures. By using Digimarc MediaBridge in its product catalogs and sales brochures, AFL could quickly and accurately provide its customers with up-to-date product information while avoiding expensive reprint fees. Since digital watermarks can be redirected to a new URL at any time, both consumers and store merchandisers can easily take advantage of coupons, promotions or rebates currently available. Merchandisers can simplify purchasing by using Digimarc MediaBridge-enabled home furnishing or other product catalogs and packaging to link directly to online product pages. Digitally watermarked materials such as magazines, direct response mailers, product packaging and brochures are held in front of a Web camera or in-store kiosk enabled with Digimarc MediaBridge software. This software launches a browser, instantly connecting the user with more complete and up-to-date product information, special offers and opportunities to purchase online. A Digimarc "D" symbol located on the printed material indicates a Digimarc MediaBridge-enabled page. Digimarc MediaBridge 2.0 reader software now available Digimarc MediaBridge 2.0 reads digitally watermarked materials faster and with better low light performance for most cameras than the previous version. It supports more than 75 percent of Web cameras currently sold. A comprehensive list of supported cameras is available. For a free version of the Digimarc MediaBridge 2.0 reader software, go to the Digimarc Website and select the "Download Digimarc MediaBridge" option. A list of quick tips for use is also available.