SAFRAN, through its Sagem Sécurité business, has put forward an unsolicited bid to purchase Digimarc Corporation’s ID business, in an attempt to oust the current sole bidder L-1 Identity Solutions. The bid comes following Digimarc Corporation’s spin-off of its digital watermarking business and cash on hand.

Digimarc’s Board of Directors have said that SAFRAN’s proposal “could reasonably be expected to lead to a superior proposal” to the transaction reflected in its current agreement and plan of merger with L-1 Identity Solutions dated March 23, 2008.

SAFRAN is entering into discussions with Digimarc regarding its proposal, which is subject to completion of due diligence of Digimarc by SAFRAN.

Digimarc Corporation, based in Beaverton, Oregon, is a leading supplier of secure identity and media management solutions. Digimarc provides products and services that enable the annual production of more than 60 million personal identification documents, including driver licenses and ID solutions for more than 25 countries. The Secure ID business reported revenues of $97 million for the year ended 31 December 2007.

SAFRAN believes that there is a good strategic fit with Digimarc’s ID business from a product, end market and geographical viewpoint.