L-1 Identity Solutions Completes Acquisition of the ID Systems Business from Digimarc Corporation

    STAMFORD, Conn., Aug. 14 /EMWNews/ -- L-1 Identity

Solutions, Inc. (NYSE: ID), a leading provider of identity solutions and

services, today announced that it closed its tender offer for all of the

outstanding shares of Digimarc Corporation (Nasdaq: DMRC) and completed its

acquisition of Digimarc's ID systems business.



    The extended subsequent offering period for the tender offer expired at

5:00 p.m. (ET) on August 13, 2008. Through the initial and subsequent

offering period, L-1 purchased 22,093,169 shares of Digimarc common stock,

representing approximately 88.37 percent of the outstanding shares of

Digimarc. Thereafter, L-1 exercised its option to purchase newly-issued

shares of Digimarc common stock directly from Digimarc in order to acquire

at least 90 percent of the outstanding shares and effect a "short-form"

merger under Delaware law. Immediately following exercise of the option,

L-1 effected the "short-form" merger and Digimarc became a wholly-owned

subsidiary of L-1 and changed its name to L-1 Secure Credentialing, Inc.

Prior to the completion of the tender offer and the merger, Digimarc

transferred its digital watermarking business to DMRC Corporation which

changed its name to Digimarc following the merger.



    As a result of the merger, any shares of Digimarc common stock not

tendered in the offer were cancelled and converted into the right to

receive the same $12.25 in cash per share (without interest and less any

required withholding taxes) that was paid in the tender offer, with the

exception of shares for which appraisal rights are properly demanded.

    About L-1 Identity Solutions



    L-1 Identity Solutions, Inc. (NYSE: ID), together with its portfolio of

companies, offers a comprehensive set of products and solutions for

protecting and securing personal identities and assets. Leveraging the

industry's most advanced multi-modal biometric platform for finger, face

and iris recognition, our solutions provide a circle of trust around all

aspects of an identity and the credentials assigned to it -- including

proofing, enrollment, issuance and usage. With the trust and confidence in

individual identities provided by L-1 Identity Solutions, government

entities, law enforcement and border management agencies, and commercial

enterprises can better guard the public against global terrorism, crime and

identity theft fostered by fraudulent identity. L-1 Identity Solutions is

headquartered in Stamford, CT. For more information, visit http://www.L1ID.com



    Forward Looking Statements



    This news release contains forward-looking statements that involve

risks and uncertainties. Forward-looking statements in this press release

and those made from time to time by L-1 Identity Solutions through its

senior management are made pursuant to the safe harbor provisions of the

Private Securities Litigation Reform Act of 1995. Forward-looking

statements reflect L-1 Identity Solutions' current expectations based on

management's beliefs and assumptions and information currently available

and actual results could differ materially from these expectations. Certain

factors that could cause or contribute to such differences include, among

other things, the availability of government funding for the Company's

products and solutions, general economic and political conditions and the

unpredictable nature of working with government agencies. Additional risks

and uncertainties are described in the Securities and Exchange Commission

filings of L-1 Identity Solutions, including its Form 10-K for the year

ended December 31, 2007 and its Form 10-Q for each of the quarterly periods

ended March 31, 2008 and June 30, 2008. L-1 Identity Solutions expressly

disclaims any intention or obligation to update any forward-looking

statements.






    CONTACTS:

    Doni Fordyce

    L-1 Identity Solutions

    203-504-1109

    [email protected]



    Steve Lipin

    Brunswick Group

    212-333-3810