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Costco Wholesale Taps Digimarc to Deliver Interactive Print-to-Mobile Experience to 8.6 Million Members

BEAVERTON, OR--(Marketwired - Apr 2, 2013) - Digimarc Corporation ( NASDAQ : DMRC ) today announced that Costco Wholesale Corporation ( NASDAQ : COST ), publisher of The Costco Connection, the largest monthly magazine in the U.S., is using the Digimarc® Discover Intuitive Computing Platform (ICP) to embed transparent digital watermarks in editorial and advertising content starting with the April issue. Using the Digimarc Discover application on their smartphone or tablets, the magazine's more than 8.6 million readers are able to scan more than 50 unique digital watermarks included in articles and ads to view product information, videos and store information, make purchases, and more on their mobile devices.

"Many of our members are already browsing The Costco Connection with their mobile phones and tablets sitting nearby," said David Fuller, Assistant VP, Publishing and Editor of The Costco Connection. "With Digimarc's solution, our readers can seamlessly move between our print magazine and our online content without ever having to open a browser and search. This instant connection to more information means our members will be able to more deeply engage with our content much more quickly."

Costco introduced readers to the interactive Costco Connection in the April issue with a quick tutorial in the table of contents. Upon downloading the free Digimarc Discover app, Costco members are able to scan and view additional content on everything from home goods and automotive products to health and wellness information. Members can also connect with additional resources, including the mobile web site, online edition of The Costco Connection and m-commerce.

"We think our Intuitive Computing Platform opens a new world of opportunities for Costco and its members," said Ed Knudson, Executive Vice President, Sales and Marketing at Digimarc. "Consumers carrying mobile devices are more empowered than ever and our technology enables retailers and brands to more deeply engage with today's consumers at every touch point throughout their shopping journey."

The Costco Connection joins a legion of print publications and catalogs using digital watermarking to engage readers in an immersive experience, meeting the needs of magazine readers in the U.S. who report they regularly want additional information from the web on articles (59 percent) and advertising (57 percent). In 2012, more than 40 publications embedded digital watermarks in stories and ads in their issues, reaching nearly 40 million readers.

Costco is the fifth largest retailer and largest membership warehouse club chain in the U.S.

About Digimarc Discover
The Digimarc Discover Intuitive Computing Platform enables smartphones and other sensor-equipped devices to "see and hear" media content using built-in cameras and microphones. Consumers simply direct their phone at content they are interested in and are presented with a range of services such as purchase a product, view a video, save for later, download a coupon, or share with a friend, for example.

Publishers and others can embed digital watermarks into content using the Digimarc Discover Online Services Portal (OSP). Magazines, newspapers, packaging companies, advertising agencies, and others are using the OSP to enable a variety of immersive new experiences and capabilities from print.

Companies interested in learning more about digital watermarking technology and licensing opportunities for the Digimarc Discover platform can call +1 800 344 4627 or email info@digimarc.com

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 and the latest news, please visit www.digimarc.com and follow us on Twitter @DigimarcCorp.