American Bank Note Holographics, Inc. Sued by Investors Alleging Securities Fraud in a Class Action Lawsuit Filed by Berger & Montague, P.C.

PHILADELPHIA--(BUSINESS WIRE)--Jan. 29, 1999--On January 26, 1999, Berger & Montague, P.C. filed a securities fraud class action against American Bank Note Holographics, Inc. (NYSE:ABH), three of its top officers, and its parent company, American Banknote Corporation.

The case was filed in the U.S. District Court for the Southern District of New York on behalf of all persons who purchased common stock of American Bank Note Holographics Inc. (NYSE: ABH) at artificially inflated prices during the period between July 14, 1998 and January 22, 1999, inclusive (the "Class Period"), and who were damaged thereby.

The Complaint alleges that defendants violated Sections 11, 12(a) and 15 of the Securities Act and 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 a materially false and misleading Registration Statement, press releases, public statements and other materials concerning ABH's business, financial condition, and financial results for fiscal years 1996 through 1998.

The Complaint further alleges that ABH improperly recognized revenue during these periods in violation of Generally Accepted Accounting Principles and, as a result, must restate its financial results for these periods.

In this regard, on January 19, 1999, ABH announced that it will restate its financial results for its second and third fiscal quarters ended June 30, 1998 and September 30, 1998, respectively. The Company further announced that its Audit Committee has retained special legal counsel and Deloitte & Touche, LLP, its auditors, to investigate certain transactions during the second and third quarters of 1998 which resulted in the inappropriate recognition of revenue causing the overstatement of the Company's revenues, sales, and net income.

Also, on January 25, 1999, the Company further announced that its financial statements for the first three quarters of 1998 would have to be restated, and that net income for the years 1996 and 1997 was overstated by approximately 10%.

The price of ABH common stock closed at $15 1/16 per share on January 15, 1999. After ABH made its stunning announcements, trading of its stock was halted at $3 per share on January 25, 1999, a loss in excess of 75%. Plaintiff seeks to recover damages suffered by Class members and is represented by the law firms of Berger & Montague, P.C. and Farrow, Bramson, Baskin & Plutzik, both of whom have extensive experience in class action securities litigation.

Berger & Montague, P.C. has over 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience in representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries in excess of two billion dollars to investors.

The firm is currently representing investors as lead counsel in actions against Waste Management Inc., Sunbeam Corp., and Boston Chicken, among others. For more information about Berger & Montague, P.C., please visit our home page at http://home.bm.net.

If you are a member of the Class described above, you may wish to join the action. You may move the court to serve as a lead plaintiff on or before March 19, 1999.

If you would like a copy of the Complaint, or if you would like to discuss this action, or have any questions concerning this notice or your rights with respect to this matter, you may contact: Sherrie R. Savett, Esq., or Michael T. Fantini, Esq., Berger & Montague, P.C., 1622 Locust Street, Philadelphia, PA 19103, or Alan R. Plutzik, Esq., Farrow, Bramson, Baskin & Plutzik, 2125 Oak Grove Rd., Suite 120, Walnut Creek, California 94598.