American Bank Note Holographics Introduces HoloSeal; Holographic Packaging Authentication Application Designed To Assure Product Security And Integrity.

Business Editors

ELMSFORD, N.Y.--(BUSINESS WIRE)--Sept. 12, 2000

American Bank Note Holographics, Inc. ("ABNH", OTC Bulletin Board:ABHH), has announced the introduction of HoloSeal(TM)(1), a new product authentication label for the packaging industry. ABNH is a world leader in the origination, production and marketing of mass-produced holograms.

Kenneth Traub, President and CEO, states that HoloSeal technology represents an extremely important innovation in product authentication and security. "The organized worldwide counterfeiting of branded products, ranging from proprietary medicines to consumer goods has become an increasing problem for manufacturers and consumers worldwide," he says.

"Manufacturers and brand owners need better ways to protect the integrity of their products and the trust of their customers. We believe we are addressing this need with HoloSeal."

The HoloSeal product authentication label was developed by ABNH as a solution to help manufacturers combat the growing worldwide counterfeiting problem. It is a tamper apparent holographic device incorporated into the product label that actually seals the manufacturer's package or container. HoloSeal helps to ensure product integrity through several advanced holographic security features.

The HoloSeal label can display the manufacturer's message to enhance the branding of the product. The HoloSeal label can also incorporate enhanced overt and/or covert security features such as a machine-readable code, as well as additional security components discernible and identifiable only with black light technology. Together, these security devices make product packaging protected by the HoloSeal label highly resistant to unauthorized duplication.

Michael Banahan, Vice President of Sales, notes that HoloSeal labels offer several additional key benefits to manufacturers. With the HoloSeal label, product inspection teams can easily distinguish counterfeit products from authentic products without breaking the seals and opening the packaging.

"An intact HoloSeal label establishes the authenticity of package contents," Mr. Banahan says, "so products can stay on the shelves and remain saleable. A conventional inspection process that requires the breaking of protective seals often renders products unsuitable for sale and represents lost income to the manufacturer."

Mr. Banahan adds: "Counterfeiters are hurting both manufacturers and consumers with bogus consumer and industrial products that are of poor quality, or defective and dangerous. The holographic devices we have incorporated into HoloSeal labels are a significant advancement in the war against product counterfeiting."

American Bank Note Holographics is a world leader in the origination, production and marketing of mass-produced holograms. The Company's products are used primarily for security applications such as counterfeiting protection for transaction cards, identification cards and documents of value, and consumer and industrial products as well as for packaging and promotional applications.

(1) American Bank Notes Holographics has applied for a patent on this

product.

This news release includes forward-looking statements that involve risks and uncertainties. Although the company believes such statements are reasonable, they can make no assurances that such statements will prove to be correct. Such statements are subject to certain factors which may cause actual results to differ materially from the forward-looking statements, including but not limited to, the outcome of pending shareholder litigation; competition in the market for holograms; retaining and attracting key employees; and changes in business conditions which might impact customers and suppliers. The companies undertake no obligation to publicly release results of any of these forward-looking statements to reflect events or circumstances after the date hereof or reflect the occurrence of unexpected results.