Digimarc Corporation · NASDAQ:DMRC

Digimarc — Liolios Group Gateway Conference 2012

18 slides from Digimarc's conference presentation, September 2012

1. Slide 1: Company Overview

   Company Overview Liolios Group Gateway Conference September 2012 ©2012 Digimarc Corporation

2. Slide 2: Safe Harbor Statement

   Safe Harbor Statement Before we proceed, please note that during the course of this presentation we will be making certain forward-looking statements. These statements are subject to many assumptions, risks, uncertainties and changes in circumstances. Any assumptions we offer about future performanc

3. Slide 3: Overview

   Overview • Company Heritage • Signal processing innovator • Pioneer in digital watermarking • Vision and Focus • Teaching computers to see, hear, and understand • Deter counterfeiting Government Security • Improve measurement and management of media • Pave way for pervasive, intuitive computing with

4. Slide 4: Our Vision and Mission

   Our Vision and Mission • Help computers see, hear, understand, and respond to media Mobility • Create digital identities for media objects that are imperceptible to humans but not computers Mobility Mobility • Pave the way for a new pervasive, intuitive Sensors + Inference computing paradigm that gr

5. Slide 5: Business Model Focuses on Building Long Term Value

   Business Model Focuses on Building Long Term Value • Our core Technologies have amazingly broad range of possible uses • Foster large-scale adoption of solutions based on our Technology 1 • Effectively monetize patent portfolio 3 • Provide development services to help partners grow 2 • Build more IP

6. Slide 6: ROI Delivered Primarily via Patent Licensing

   ROI Delivered Primarily via Patent Licensing Digimarc US Patents • Key target markets • National security 600 • Media and entertainment 500 • Mobile device search 450 • Pervasive, intuitive computing 400 • Extend portfolio depth • Basic technologies 350 • Applications 300 • Systems • Processes 250 •

7. Slide 7: Financial Model

   Financial Model • Digimarc’s “product” is innovation captured in patents with fixed 20 year useful lives • Licensing model provides financial and operational leverage • Partners put up risk capital; Digimarc shares in successes but not failures • Balance profitable growth with building long term ass

8. Slide 8: Delivering Value to Stakeholders

   Delivering Value to Stakeholders • Strong revenue and earnings growth • Enterprise value has increased over 400% in last three and one-half years • $310mm cash distributed to shareholders in 2008 • $26mm cash for share repurchase over last three years • First quarterly cash dividend 4/12: $.11/share

9. Slide 9: Government Security

   Government Security • Counterfeit Deterrence • Globally deployed system to deter counterfeiting of money • Customer is consortium of leading central banks • ~$10 million annual revenues — Slide 9 — ©2012 Digimarc Corporation

10. Slide 10: Media Measurement and Management

    Media Measurement and Management • Audience measurement • TV (Nielsen) • Radio (Arbitron) • Copyright protection for movies • Digital Cinema (Civolution) • Blu-Ray (Verance) • Video On Demand (multiple vendors) • Media identification key to new media industry models — Slide 10 — ©2012 Digimarc Corpo

11. Slide 11: Digimarc Discover Delivers the Seeing/Hearing Smartphone

    Digimarc® Discover Delivers the Seeing/Hearing Smartphone Magazines into Interactive Direct Mail Music Recognition Web Browsers and Catalogs Newspapers into Media Enhanced Packaging Synchronized TV Viewing Web Browsers — Slide 11 — ©2012 Digimarc Corporation

12. Slide 12: Smartphones: Our Digital "Eyes" and "Ears"

    Smartphones: Our Digital “Eyes” and “Ears” Accelerometer & Gyroscope GPS Responds to motion Knows where you are Proximity Sensor Integrated Camera Senses closeness Provides the means to “see” media and objects in its surroundings Microphone Network Access Used to “hear” providing audio High speed co

13. Slide 13: Print-to-Mobile is Taking Off

    Print-to-Mobile is Taking Off — Slide 13 — ©2012 Digimarc Corporation

14. Slide 14: Principal Sources of Revenue -- 2011

    Principal Sources of Revenue -- 2011 • Services (34%) • Deter counterfeiting of currency (central banks) • Engineering services (Nielsen) • License and Subscription (66%) • General patent licensing (Intellectual Ventures) • Audience measurement (Nielsen) • Digital Cinema (Civolution) • Blu-Ray (Vera

15. Slide 15: Competition

    Competition • Application-specific functional and economic alternatives • Digimarc Advantages • Unique proprietary technologies • Extensive high quality IP • Loyal employees with special skills and talents • Market experience • Network of business partners • Established brand • Strong balance sheet

16. Slide 16: Growth Drivers and Strategy

    Growth Drivers and Strategy • Key Drivers • Exponential growth in media content • Transformation of media industries • Evolution of mobile phone into seeing/hearing/understanding computing device • Astonishing growth in smartphone adoption • Improved licensing of patents via IV • Strategy • Facilita

17. Slide 17: Investment Highlights

    Investment Highlights • Company Heritage • Signal processing innovator • Pioneer in digital watermarking • Vision and Focus • Teaching computers to see, hear, and understand • Deter counterfeiting Government Security • Improve measurement and management of media • Pave way for pervasive, intuitive c

18. Slide 18: August 2008 • Bruce Davis

    August 2008 • Bruce Davis ©2010 Digimarc Corporation | Company Confidential

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