TheBarcodeofEverything™

PleasedownloadtheDigimarc®Discoverapp

Beforeweproceed,pleasenotethat

duringthecourseofthispresentationwewillbemakingcertainforward-looking statements.

Thesestatementsaresubject tomanyassumptions, risks, uncertaintiesandchangesincircumstances.

Anyassumptions weofferaboutfutureperformancerepresentapoint-in-time estimate.

Actualresultsmayvarymateriallyfromthoseexpressedorimplied bysuch statements.

Weexpressly disclaimanyobligationtoreviseorupdateanyassumptions, projections, orotherforward-looking statementstoreflecteventsorcircumstancesthatmayariseafterthedateofthispresentation.

Formoredetailedinformationaboutriskfactorsthatmaycauseactualresultstodifferfromexpectations,pleaseseethecompany’s filingswiththeSecurities andExchangeCommission, includingourmostrecentForm10-Qor10-K.

SafeHarborStatement

Ground-breakingR&D• Twentyyearhistoryinhighsecurity• Digitalwatermarkingpioneer• Expertiseinsignalprocessingandembeddedsystems• 1,200patentsissuedandpending

Potentialinflectionpoints• Invisibleandinaudiblehighperformancebarcode

• Comprehensivemobilediscoveryplatform

• Largehighqualitypatentportfolio

• Momentumamonglargeretailersandbrands

Deliveringfruitsofinvestmentsingrowth• ConsolidatedR&Dintolicensablesoftwareandservicesplatform

• Major“Shopper'sJourney”productlaunchinJanuary2014

• Digimarc® Barcodeprojectedtosaveretailersbillionsofdollars

• Digimarc® DiscoverandBarcoderolloutamongretailersandCPGbrandsunderway

• Digimarc“BarcodeofEverything™”Investinginlongtermassets• Clearlyarticulatedmarketdevelopmentstrategy

• TTMRevenues: $23mm/R&D:$13mm/EBITDAS: ($10mm)

• Workingcapital:$43mmcashandinvestments/nodebt

Deliveringshareholdervalue• $310mmincashtoshareholdersfrom2008spin-off

• $7mmindividendsfrom2012to2014

• $42mminsharebuybacksatanaverage priceof$26/share

• Eight-foldEVappreciation,from$30mmto$245mm,since2008($34.05/share;1/8/16)

InvestmentHighlights

20YearsofInnovationatDigimarc

2016EmmyAwardForTechnologicalAchievement

ApplicationsacrossMediaIndustriesIncludeindustry standardsinsecurityforcurrency,government-issuedIDs,andmovies;additionalapplicationsinaudiencemeasurementforTVandradio,print-to-mobilepublishing,copyrightprotection,andshopper’sjourneyenablement.

LatestdevelopmentisDigimarcDiscoverandBarcodefocusedonretailers,brands,andmodernmobile-centricshoppers.

20YearsofOperationWell-capitalizedpubliccompanywithstrongoperatinghistory

ExpertiseSignalprocessing;printtechnologiesandprocesses

18yearsinSecurityContinuousservicetoglobalconsortiumofCentralBanks

MULTI-MODALSDK

ENGAGEPROPRIETARY

DIGIMARCBARCODE

Digimarc-brandedandThirdParty• Subscriptions

• Royalties

• Revenueshares

• PassthroughofDigimarcBarcodefees

DigimarcBarcodeBusinessModel• $50annualfee/Barcode,orenterpriselicense

• Addressablemarket:billions ofitemsandmediaobjects

DISCOVERIDENTIFY

APPLICATIONS

Digimarc’s IntuitiveComputingPlatform

DigimarcBarcodeApplications

CentralBanks:banknotecounterfeitdeterrenceMorpho Trust,Mitek:driverlicenseauthentication

Civolution:DigitalcinemacopyrightprotectionVerance:BluRaycopyrightprotection

Nielsen:audiencemeasurement;expansionthruDigimarcJVSourceAudio:productionmusicmonitoringVerimatrix:OTTcopyrightprotectionIrdeto: OTTcopyrightprotection

Shazam:“visualShazaming”Scanlife:consumerengagementforretailersandbrandsEndeavourMedia:consumerengagement

Datalogic,Honeywell,NCR: retailPOSscanningSGS,Schawk,Perrigo:branddeploymentWegman’s,NewSeasons:retailers

GovernmentSecurity

Movies

RetailersandBrands

ConsumerMobileTVandRadio

eBooksandDigitalImages

Guardian:anti-piracyandcopyrightprotectionservices

Digimarc andtheEvolutionofAutoID

TraditionalUPCBarcode• Transformativetechnology• 100sofmillionsofbarcodes

DigimarcBarcodeTheBarcodeofEverything™

• DoeseverythingUPCbarcodedoes,better• Canbeappliedtoaudioaswellasimages• Invisibleandinaudible

• Reliable,efficient,economical,andscalable

DigimarcBarcode:TheBarcodeofEverything™

• PrintingofDigimarcBarcodepackagescanbedonebyexistingmanufacturers’printers

• Nospecialinksorprintprocesses arenecessary,andallsubstratesaresupported

• Onesimpleadditional simple stepisallthatisrequiredtoenhancepackagesaspartofthedigitalprepressworkflow

• Digitalartworkfiles senttoDigimarcorcertifiedChannel Partnertobeenhancedandreturnedtoprinter/supplier forproduction

• Digimarc Barcodeenhancedpackagingcreatesoperationalefficiencies andenhancedengagementwithconsumers

Barcodes:SixorTwoHundred?

1

2

3

4

5

6

ImproveOperationalEfficiencyforRetailers

Nohuntingforthebarcodemeansfastercheckout!

$500MforeveryItemPerMinutescanspeedimprovementfortop120retailers IPM

1

Source:DigimarcBarcode:AQuantitativeModelofLaborCostSavingsforRetailers

WegmansFirsttoMarketwithDigimarcBarcodeforPackaging

ConsumerEngagementforEveryBrandImpression

MOBILE-TO-DIGITALSIGNAGE

LOCATION-SPECIFICAUDIORECOGNITIONMOBILE-OPTIMIZED

SHELFLABELS

INTERACTIVEPRINTADS

INTERACTIVETVCOMMERCIALS

PACKAGING

BUYNOWPRODUCTINFO

REVIEWSRECIPES

RECOMMENDATIONSTRIVIA

SHOPPINGLISTSPRODUCTLOCATORHOWTOVIDEOS

COUPONSSWEEPSTAKES

SHAREMOBILECHECKOUTSCAVENGERHUNT

ManyWaystoDeliverMobileExperiencesviaDigimarcSDK

3rd PartyApps3rd PartyApps

3rd PartyApps3rd PartyApps

Digimarc®DiscoverRetailerorBrandApp

Magazines

CircularsandCoupons

SecondScreenTVandRadio

RobustWorksinallmediadistributionpaths(TV,AM,FM,YouTube,etc.)

IdentificationCanidentifycampaign,channel,source,etc.

MetricsSupportmetricsbydeviceandcampaign

Modeless discoveryNoneedtoswitchbetweencameraandmicrophone

Posters– VisualShazam

TraditionalOutdoorAdvertising

BogotaColombia

DigitalOutdoorAdvertising

Yunika Vision displaynearShinjuku Station

Cross-sellandPromotion

PAIRINGS

In-storeCoupons

SALE

MagazinesEducationandEntertainment

SubscriptionsandSocialNetworking

Digimarc DiscoverandBarcode

MobileAuto ID

Digimarc Discover:World’sBestDiscoveryEngineforConsumers

Keywords/OnlineShopping

Traditional Media/PhysicalRetail

EASEOFSEARCH

ACCU

RACY

OFS

EARCH

DigimarcTheBarcodeofEverything™

1973 – UPC(barcode)1992 – Digimarc1994 – DensoQRCode

Amazon1998 – Google

MediaBridge2005 – ScanLife2007 – AppleiPhone2008 – Digimarc ICP

KooabaRedLaserShazam

2009 – LayarAmazonFlow

2010 – Digimarc®DiscoverforPublishing

2011 – BlipparVuforia

2013 – Google2014 – FirePhone

FireFly2015– Metaio

DigimarcDiscoverforRetailandBrandsDigimarcBarcodeofEverything™

DigimarcDiscoverwithICPoptimization

BillionsofMobileSensorsSeekingDiscovery

ConsumerEngagement

- POS- Self-checkout- VariableWeight

- Inventory- Reordering- Recall- Logistics

TheBarcodeofEverything™EmergingApplications

Manymoretobedeveloped

- ProductConversion- Manufacturing

CoreStrengths/SustainableCompetitiveAdvantage

Signalprocessingexperts,bestknownfordigitalwatermarking• Longhistoryinsecurityapplications

• Largescaleembeddedsystems

• IntuitiveComputingPlatform(ICP)

• Digimarc“BarcodeofEverything™”

• Digimarc®Discovermulti-modaldiscovery

• Singlesoftwareplatformforallmedia

• Large,highqualitypatentportfolio:800issued,400pending

800PatentsissuedClearstrategywithsustainablecompetitiveadvantage

targetinglargemarkets:

• Highperformancebarcodesforpackagingdelivergame-changingperformance

• AutomaticmobiledeviceIDofallbrandimpressionsinShopper’sJourney

• Targetingleadingretailersandglobalconsumerbrands

• Revenuemodelof$50annualfee/codeorenterpriselicense

RecentDevelopments

TheBarcodeof Everything™

WhoisGS1?

GS1— theorganization thatbroughtyouthebarcodeover40yearsagowhosesystemsarenowresponsible forover5Btransactionsperdayisonceagainhelpingbusinesstoreinventthemselves.

Today,theGS1SystemofStandardsservesmorethan2millionbusinessesacross25industries, andintheUnitedStatesalonethereare300,000membercompanies. 1974:FirstScanofU.P.C.Barcode

MomentumisBuilding:NRFAnnouncementsandOtherRecentDevelopments

Industrysupport:GS1

Brand deploymentSchawk, Perrigo

ScannersHoneywell,NCR

StoreoperationsRockfish,Microsoft

RetailersNewSeasons

BrandsKraft

Ground-breakingR&D• Twentyyearhistoryinhighsecurity• Digitalwatermarkingpioneer• Expertiseinsignalprocessingandembeddedsystems• 1,200patentsissuedandpending

Potentialinflectionpoints• Invisibleandinaudiblehighperformancebarcode

• Comprehensivemobilediscoveryplatform

• Largehighqualitypatentportfolio

• Momentumamonglargeretailersandbrands

Deliveringfruitsofinvestmentsingrowth• ConsolidatedR&Dintolicensablesoftwareandservicesplatform

• Major“Shopper'sJourney”productlaunchinJanuary2014

• Digimarc® Barcodeprojectedtosaveretailersbillionsofdollars

• Digimarc® DiscoverandBarcoderolloutamongretailersandCPGbrandsunderway

• Digimarc“BarcodeofEverything™”Investinginlongtermassets• Clearlyarticulatedmarketdevelopmentstrategy

• TTMRevenues: $23mm/R&D:$13mm/EBITDAS: ($10mm)

• Workingcapital:$43mmcashandinvestments/nodebt

Deliveringshareholdervalue• $310mmincashtoshareholdersfrom2008spin-off

• $7mmindividendsfrom2012to2014

• $42mminsharebuybacksatanaverage priceof$26/share

• Eight-foldEVappreciation,from$30mmto$245mm,since2008($34.05/share;1/8/16)

InvestmentHighlights

TheBarcodeofEverything™

©2015DigimarcCorporation