Idaho Awards Digimarc New $4.6 Million Contract to Enhance Driver License Security and Citizen Safety

— December 20, 2006

The Idaho Transportation Department has awarded Digimarc Corporation a five-year contract extension valued at approximately $4.6 million to enhance the security of its driver license system and better protect Idaho residents from driver license fraud.

“The Idaho Transportation Department and Digimarc have forged a strong partnership over more than 20 years of working together,” said J. Scott Carr, executive vice president, Digimarc. “We look forward to supporting Idaho as they implement a higher security credential and new identity verification solutions and processes that are designed to help protect citizens from identity theft and fraud.”

Idaho will incorporate new Digimarc secure enrollment products to strengthen the process of capturing and verifying applicant identity information while ensuring high levels of customer service. In addition, Idaho is upgrading the security of the driver license credential, becoming the 20th state to adopt Digimarc IDMarc digital watermarking as a machine-readable security feature designed to help prevent driver license counterfeiting, alteration and photo swapping.

Digital watermarking is an imperceptible, machine-readable security feature that enables reliable cross-jurisdictional authentication of U.S. driver licenses using commonly available scanners with special software. Digimarc anticipates that approximately 1 in every 2 driver licenses issued in 2007 will include digital watermarks.

Other key elements of the more secure Idaho driver license system include implementation of the Digimarc Camera Tower, Digimarc Capture Software and Digimarc Image Server to securely capture, store and serve up the images needed by driver license issuers for card production, renewals, fraud investigation, and more.

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