American Bank Note Holographics, Inc. Named in Class Action Lawsuit.

NEW YORK--(BUSINESS WIRE)--Jan. 21, 1999--A class action lawsuit against American Bank Note Holographics, Inc. ("ABH" or the "Company") (NYSE:ABH)and certain individuals associated with the Company was commenced today in the United States District Court for the Southern District of New York, Case No. 99 CIV 0439, on behalf of investors who purchased ABH shares in the period July 15, 1998 through and including January 19, 1999 (the "Class Period").

The Complaint charges defendants with violations of Sections 11, 12(a)(2) and 15 of the Securities Act and violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder, in connection with, among other things, their dissemination of materially false and misleading press releases, public statements and other materials concerning ABH's business and financial condition and concerning ABH's financial results with respect to ABH's quarters ended June 30, 1998 and September 30, 1998, respectively. The Complaint alleges that ABH employed improper revenue recognition for these periods in violation of Generally Accepted Accounting Principles and, as a result, must restate its financial results for those periods.

This action seeks to recover damages on behalf of defrauded investors during the Class Period. Plaintiff is represented by Weiss & Yourman and Stull, Stull & Brody, law firms having significant experience and expertise prosecuting class actions on behalf of investors and shareholders in federal and state courts throughout the United States, particularly those involving financial reporting improprieties. The firms have been appointed by courts as lead counsel in numerous complex litigations and have recovered hundreds of millions of dollars on behalf of investors.

If you purchased ABH securities during the Class Period you may move the court no later than March 22, 1999 to serve as a lead plaintiff of the class. In order to serve as a lead plaintiff, you must meet certain legal requirements.

If you wish to discuss this action, or have any questions concerning this notice or your rights or interests with respect to this matter, or if you have any information you wish to provide to us, please contact Joseph D. Cohen by calling toll-free [phone] or [phone] in New York City, or via Internet electronic mail at [e-mail] or by writing Weiss & Yourman, The French Building, 551 Fifth Avenue, Suite 1600, New York, NY 10176, or Jim Tullman by calling toll-free (800) 437- 7918 or [phone] in L.A. or via Internet electronic mail at [e-mail] or by writing Weiss & Yourman, 10940 Wilshire Blvd., 24th Floor, Los Angeles, CA 90024.