Exhibit 99.1

Company Contacts:

Michael McConnell

Chief Financial Officer

503-469-4652

mmcconnell@digimarc.com

Scott Liolios or Matt Glover

Liolios Group, Inc.

Investor Relations for Digimarc

949-574-3860

info@liolios.com

FOR IMMEDIATE RELEASE

Digimarc Reports Fourth Quarter and Full Year 2010

Financial Results

2010 Revenues Up 63% to Record $31.2 Million

Beaverton, Ore. — February 28, 2011 — Digimarc Corporation (NASDAQ: DMRC) reported financial results for the fourth quarter and fiscal year ended December 31, 2010.

Fourth Quarter 2010 Results

Revenues for the fourth quarter 2010 increased 89% to $10.5 million from $5.5 million in the same quarter a year ago. This was largely due to an increase in license and subscription revenues from the new licensing relationship with Intellectual Ventures (IV).

Operating income for the fourth quarter 2010 was $3.1 million, compared to an operating loss of $0.3 million in the fourth quarter of 2009. The improvement was primarily due to payments related to the license with IV, offset by expenses associated with the IV transaction, increased marketing expenses, and investments in the company’s mobile product initiatives.

Net income for the quarter was $2.8 million or $0.35 per diluted share, which included Digimarc’s share of the net loss from its joint ventures with Nielsen of $0.6 million. This compares to a net loss of $0.6 million or $(0.08) per diluted share in the fourth quarter of 2009, which included Digimarc’s share of the net loss from the company’s joint ventures with Nielsen of $0.4 million.

Full Year 2010 Results

Full year 2010 revenues increased 63% to a record $31.2 million from $19.1 million in 2009. The improvement was driven primarily by increases in license and subscription revenues related to new licenses entered into with IV in the fourth quarter and Arbitron in the first quarter. Service revenues increased 14% from 2009.

2010 operating income was $6.2 million, compared to an operating loss of $2.6 million in 2009. Net income was $4.2 million or $0.55 per diluted share. Net income included Digimarc’s share of net losses from its joint ventures with Nielsen of $2.2 million, the majority of which is attributable to research and development activities. This compares to a net loss of $2.8 million or $(0.39) per diluted share in 2009 that included Digimarc’s share of net losses from the company’s joint ventures with Nielsen of $0.7 million.

At December 31, 2010, cash and cash equivalents and marketable securities totaled $45.9 million, up from $42.8 million at December 31, 2009.

Conference Call

Digimarc will hold a conference call later today (Monday, February 28, 2011) to discuss fourth quarter 2010 and year end financial results. Chairman and CEO Bruce Davis and CFO Mike McConnell will host the call starting at 5:00 p.m. Eastern time (2:00 p.m. Pacific time). A question and answer session will follow management’s presentation.

The call will be simulcast via a link available on Digimarc’s home page at www.digimarc.com, and will be available for replay until March 14, 2011. Thereafter, the webcast will be archived at www.digimarc.com/investors/events.asp.

About Digimarc

Digimarc Corporation (NASDAQ: DMRC), based in Beaverton, Oregon, is a leading innovator and provider of enabling technologies that create digital identities for all forms of media and many everyday objects. The embedded digital IDs are imperceptible to humans, but not to computers, networks and devices like mobile phones, which can now use cameras and microphones as sensory inputs to “see, hear and understand” the world around them within the context of their environment. Digimarc has built an extensive intellectual property portfolio with patents in digital watermarking, content identification and management, media and object discovery to enable ubiquitous computing, and related technologies. Digimarc develops solutions, licenses its intellectual property, and provides development services to business partners across a range of industries. For more information, please visit www.digimarc.com.

Forward-looking Statements

With the exception of historical information contained in this release, the matters described in this release contain various “forward-looking statements.” These forward-looking statements include statements and any related inferences regarding Digimarc’s investment in marketing and research and development in its mobile product initiatives, increases in license and subscription revenues, and other statements identified by terminology such as “will,” “should,” “expects,” “estimates,” “predicts” and “continue” or other derivations of these or other comparable terms. These forward-looking statements are statements of management’s opinion and are subject to various assumptions, risks, uncertainties and changes in circumstances. Actual results may vary materially from those expressed or implied from the statements in this release as a result of changes in economic, business and/or regulatory factors. More detailed information about risk factors that may affect actual results will be set forth in the company’s Form 10-K for the year ended December 31, 2010 and in subsequent periodic reports filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s opinions only as of the date of this release. Except as required by law, Digimarc undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this release.

Digimarc Corporation

Income Statement Information

(in thousands, except per share amounts)

(Unaudited)

Digimarc Corporation

Balance Sheet Information

(in thousands)

(Unaudited)

Digimarc Corporation

Cash Flow Information

(in thousands)

(Unaudited)

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