Digimarc Board Approves $310 Million All-Cash Offer from L-1 Identity Solutions for Digimarc's ID System...(r combined presence and knowledge ofinte...)

L-1 believes that the combination of L-1 and Digimarc's Secure ID business will bring significant synergies and benefits to the identity management industry. The company's customers will have a choice of secure credentialing production systems, including central issuance, over-the-counter, and hybrid approaches that utilizes both methods. The combined security feature portfolios of the companies will deliver best-in-class protection to produce the most secure credentials possible. The industry knowledge of the combined teams will foster development of superior next-generation security functionality for future applications. The increase in industry knowledge and cross-border relationships will help secure identities across the globe in emerging markets such as Russia and Asia-Pacific, as well as with Canadian and Mexican biometric credentialing programs. Leveraged synergies between the businesses will reduce the cost structures of both organizations to drive greater operational efficiency and shareholder value. These benefits also will be passed directly to the customer for improved customer service from the combined call center and field service teams, bolstered competency of the entire organization from acquired back office systems and processes, and valuable savings with more competitive pricing from economies of scale.

Under the terms of the amended merger agreement, the tender offer is expected to commence on July 2, 2008, but no later than July 7, 2008 and remain open for 20 business days. The spin-off of the digital watermarking business will occur prior to the expiration date of the tender offer.

About L-1 Identity Solutions

L-1 Identity Solutions, Inc. (NYSE: