IDMarc and Document Inspector

© Digimarc Corporation - Confidential

Digimarc Secure ID Leadership

Digimarc driver licenses in 30 states and Wash. D.C.

Digimarc drivers licenses, national IDs & voter IDs in more than 20 countries

More than 60 million Digimarc ID cards issued per year; 2 billion IDs to date

Digital watermarking pioneer, IDMarc adopted by 20 U.S. States

More than one in three US licenses produced in 2006 featured IDMarc

Digimarc is the

world leader in designing, developing

and integrating secure ID systems

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© Digimarc Corporation - Confidential

Secure Credential

Post Issuance Inspection

Secure Enrollment

Secure Production

Digimarc Secure ID Lifecycle Solutions

Card Architecture

ExianBase ExianEvident ExianDual

ID Authenticationfor Travel, Retail, Banking, DMV

IDMarc

Test

DLTest(Knowledge Testing)

Camera Tower

Capture Software

Capture

Identity Validation Suite (IDVS)

Applicant Data

Verification

Biometric Identification

Verify

Store

Image Server(Image and Document Archiving)

Security Features

IDMarc OVD Laser

Perforation

Banknote Design

Multi-Personalization

Tamper

Evident

Restricted Materials

Durability Others…

Document Inspector

Over-the-Counter Issuance

WorkflowInventory

Management

Production Hardware/ Software

Central Issuance

WorkflowInventory

Management

Production Control

(Zero Gap)

Mailing/Auditing

Secure Facilities

Professional Staffing

Fingerprint & Signature Capture

Document Authentication

SEE, FEEL, MACHINE VALIDATE

© Digimarc Corporation - Confidential

Digital Watermarking

Digital Watermarking (DWM):• Includes a set of proven software technologies

• Covertly encodes and decodes digital information

• Creates an imperceptible identity in digital content, digitally-derived print and analog media

DWM is currently being used to secure and enhance• Financial documents

• Identification documents including driver licenses and visas (IDMarc)

• Both printed and electronic digital photographs

• Native and broadcast digital audio and video

© Digimarc Corporation - Confidential

IDMarc

An imperceptible digital code that can be placed into all forms of digital or printed content, including driver licenses

Security feature that takes up no additional space on the driver license

Machine readable by a low-cost readers with secure software

Enables cross-jurisdictional authentication

Balances the need for document security with citizen privacy

Original Photo

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© Digimarc Corporation - Confidential

IDMarc- Linked and Layered Security

A “Covert Digital Laminate”

• Digital interlocking is enabled by IDMarc

• Stand alone security features can now cross reference one another

• Covert features can link to overt

• Physical features link to digital features

© Digimarc Corporation - Confidential

Why IDMarc in Driver Licenses?

Reliable visual authentication is impacted by …• Digital counterfeiting techniques

• More than 200 different U.S. DL designs

• Skill and experience required to be able to spot a fake ID

• Darkness or areas with limited visibility

• Staff distractions

• Unfamiliarity with out-of-state licenses

Digital Watermarking eliminates judgments calls through instant machine authentication

© Digimarc Corporation - Confidential

IDMarc Inspection

Machine readable authentication• IDMarc Inspector Series software compares linked data elements to

authenticate the document

Multi-layer inspection• Different levels of analyses depending on software

• Forensic or Retail/Age Verification editions of the software available

© Digimarc Corporation - Confidential

Digimarc

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Digimarc (Pending)

Self Issuing

Other

Digimarc IDMarc

IDMarc Adoption- Data as of January 2007

IDMarc® Trends

20 states

11 States at critical mass (over 50% IDMarc in circulation)

New drivers the most likely to have IDMarc DL

Total DL’s in circulation

with IDMarc:

~23% (51,462,000)

50% USDL under contract*

Q1 2006

Q2 2006

Q3 2006

Q4 2006

07-08 TBD

Michigan

Nebraska

Colorado

Kansas

Florida

New Jersey

Alabama

Iowa

Wyoming

Mass

Vermont

Minnesota

Idaho

Oregon

DC

Utah

Texas

Washington

Indiana

States with over 50% of total DL’s in circulation w/ IDMarc*Annual forecasted IDMarc issuance data (either in production or

under contact) divided by the total annual issuance for all US DL’s.

© Digimarc Corporation - Confidential

NHTSA Pilot Program with the Nebraska DMV

NHTSA grant to determine easy authentication of driver licenses using IDMarc

IDMarc readers installed at:• 18 point-of-sale sites, 30 office sites including DMV exam stations and 35 law enforcement sites

• DMV and Law Enforcement utilized a forensic version

• Point-of-sale sites utilized a retail version

Results of the program:• 97% had confidence that the ID was authentic• 86% (retail only) would purchase the hardware that uses the digital watermark feature• Nebraska deployed readers on their examiner workstations