Audible Magic Press Release

Audible Magic Corporation to Integrate Activated Content’s Watermarking Technology Into its CopySense(R) Network Appliance

Anti-Piracy Collaboration Offers a Broad Content Identification Platform

LOS GATOS, California — October 3, 2005 — Audible Magic Corporation, a leading provider of content management services to the digital media and entertainment industries, today announced plans to integrate Activated Content Corporation’s watermarking technology into its CopySense(R) Network Appliance, offering a new level of protection for pre-release music, film and multi-media content. The ActivatedAudioÔ Watermarking Suite provides watermark encoding, distribution management and forensic source tracing as an anti-piracy solution for digital entertainment. Audible Magic’s CopySense(R) appliance utilizes a patented audio fingerprinting technology to monitor and filter copyrighted content on P2P networks. Under the new collaboration, CopySense(R) technology will recognize and filter multi-media content containing Activated Content’s proprietary watermarks, enhancing their forensic capabilities by identifying and protecting pre-release content in the wild. The association between Audible Magic and Activated Content delivers an unprecedented, all-inclusive content identification platform to support and secure digital entertainment.

Audible Magic’s CopySense(R) technology is based on more than a decade of research. The CopySense(R) appliance is the first product to give network administrators comprehensive control over P2P file trading. The product can identify and log P2P usage, block illegal transfers of copyrighted material and limit P2P traffic to a specified amount of bandwidth. It is fast, extremely accurate and highly immune to distortion. CopySense(R) is also an integral part of Audible Magic’s RepliCheck anti-piracy information service, an industry standard in the CD replication market.

ActivatedAudio(R) Watermarking Suite is the industry’s first comprehensive and practical watermarking solution for encoding identifiable, robust, inaudible and unique codes into digital audio. It was designed to help record companies identify and track leaks of new music by embedding a digital watermark in the audio content as a forensic identifier, while not impacting the quality or playability of the music.

Vance Ikezoye, Founder and CEO of Audible Magic said, “Content owners are particularly interested in protecting their newer releases. In recognizing the trend in watermarking pre-release music and motion pictures we saw an opportunity to further expand the capabilities of our CopySense(R) technology as an effective anti-piracy tool. By joining forces with Activated Content we can offer our customers two best-of-breed technologies that can protect and control entertainment content. For educational and ISP networks, this collaboration promises to be extremely beneficial.”

Eric Silberstein, Director and CEO of Activated Content added, “We are very enthusiastic about being able to offer the record labels and film companies another method of identifying content leaks. The fact that CopySense(R) technology will be looking for Activated Content watermarks to block/interdict audio content will be a major addition to what we can offer our customers in the music and film industries. Combining our products with those of Audible Magic will take everyone to the next level in the ongoing efforts to combat piracy and to protect digital content.”

About Audible Magic, Inc.

Audible Magic Corporation provides content management and anti-piracy services to the media and entertainment industries as well as to business, governmental, and educational institutions. The company's offerings utilize patented content identification technologies and an extensive reference database of audio and video content. Its digital technology and services are designed to monitor, track, manage, filter, and monetize digital content in all of its forms. The company has been active providing solutions for the Web 2.0 user-generated content video sharing sites.

Audible Magic has long-term relationships with the major record labels that have registered their content in the company’s database that holds one of the largest collections of copyrighted digital song recording fingerprints in the world. Corporate partners include EMI Recorded Music, Palisade Systems, Sony/BMG Music, Universal Music Group, V2 Music, Warner Music Group, and EMI Recorded Music. Audible Magic’s technology is also employed by Grouper, iMesh and PlayLouder MSP music service. Other major market customers include over 70 educational institutions and the media manufacturing industry. Audible Magic’s products include the CopySense P2P Plug-In; CopySense Network Appliance, and RepliCheck.

The Company was founded in 1999, and it operates from offices in Los Gatos, Los Angeles, and Berkeley, California.

For more information, visit Audible Magic’s website at www.audiblemagic.com.

For more information, please contact:

Audible Magic Media & Analyst Inquiries

Sarah McMullen
McMullen & Company
310.283.7907
smcmullen@earthlink.net

About Activated Content Corporation:

Launched in 2001 and based in Bellevue, Washington, Activated Content has developed and is marketing a suite of products and services to protect and manage audio-inclusive content. Market entry products protect music in B2B & B2C markets from piracy using a patented advanced audio watermarking technology. The products are fully developed for embedding inaudible digital watermarks into audio, and provide a full and robust set of tools for forensic tracking from creation to distribution.

With global deployments in England, France, Germany, Denmark, the Netherlands, Turkey, India, Australia, and Canada, the Activated Content watermarking technology is incorporated in over 3.5 million audio tracks worldwide leading to weekly detection of industry leaks and piracy. The Activated Content products can be adapted for use in protecting, tracking, and managing major motion pictures, direct-to-DVD, and electronic games as well as other forms of audio-inclusive entertainment content.

For more information visit Activated Content’s website at (www.activatedcontent.com) A significant minority shareholder is Digimarc Corporation (NASDAQ: DMRCE), based in Beaverton, Oregon, a leading supplier of secure media solutions used in a wide range of security, identification and digital media content applications.