American Bank Note Holographics Opens New Security Holographic Facility in Dalton, MA.

Business Editors

ELMSFORD, N.Y.--(BUSINESS WIRE)--May 9, 2001

High Security Holographic Production Facility Built Inside

Crane & Co.'s Security Paper Plant

American Bank Note Holographics ("ABNH", OTC Bulletin Board: ABHH), a world leader in the origination, production and marketing of holograms for security applications, has built a new holographic production facility inside one of Crane & Co.'s high security paper facilities in Dalton, MA.

The new plant will complement the production of ABNH's other two plants in Elmsford, NY and Huntingdon Valley, PA, and has been designed as a high security holographic production facility. ABNH is the world's leading producer of security holograms for credit cards, and is a leading innovator of security holograms for a wide variety of applications including bank notes, identification documents, pharmaceuticals, and consumer and industrial products.

Crane & Co. is one of the world's leading suppliers of high security paper for bank notes, and is the supplier of all of the paper in United States currency.

Crane & Co.'s plant is a high security facility which has been approved for security work by the United States Treasury, among others. It is one of the most advanced facilities for secure banknote paper in the world. The addition of ABNH's holographic facility inside this plant continues the tradition of producing the most advanced security devices to protect critical documents. ABNH has worked in partnership with Crane & Co. to build this facility, and leases space and certain services from Crane & Co.

ABNH has relocated Susan A. Morwald and William C. Morwald, two of its most experienced production and product development managers to manage the new facility. Susan Morwald has been named the Director of Manufacturing of the new facility. Susan has been with ABNH for over 16 years, and was previously the Production Manager of the company's Huntingdon Valley plant. William Morwald has been named Director of Operations of the new facility and he will be directing the company's product design and development efforts for bank note holograms. William Morwald has been with ABNH for over 16 years, and previously was responsible for managing the Quality, ISO, Slitting and other areas of ABNH's Huntingdon Valley facility. Both have relocated from Pennsylvania to Dalton, MA to assume these responsibilities.

Kenneth Traub, President and CEO of ABNH, commented, "We appreciate Crane & Co.'s support in helping us to create a state-of-the-art, high security holographic facility within their plant. This facility will enable us to collaborate more closely with Crane & Co. on projects of mutual interest, and give us expanded capacity and greater flexibility to serve our customers. I would also like to congratulate Susan and Bill Morwald on their new and important assignments."

Douglas Crane, Manager of Strategic Planning of Crane & Co., added, "We are delighted to be working closely with ABNH and would like to welcome them to Dalton. Both companies share a rich heritage and a 200-year tradition that has culminated in a close partnership this year. We are both committed to providing the most effective security devices to protect valuable documents from the increased risk of counterfeiting."

About ABNH

American Bank Note Holographics is a world leader in the origination, production and marketing of holograms. The Company's products are used primarily for security applications such as counterfeiting protection and authentication of transaction cards, identification cards, documents of value, consumer and industrial products as well as for packaging and promotional applications. ABNH has production facilities in Elmsford, NY, Huntingdon Valley, PA and Dalton, MA. Additional information on ABNH can be obtained on the world wide web at www.abnh.com.

About Crane & Co.

Crane & Co., Inc., founded in 1801, is internationally renowned for its fine 100% cotton social, business and bank note papers. In addition to supplying the United States government with its currency paper since 1879, Crane & Co. also makes paper for international bank notes as well as a variety of technical applications and non-woven materials. Additional information on Crane & Co. can be obtained on the world wide web at www.crane.com.

ABNH Forward-Looking Statement 

This news release includes forward-looking statements that involve risks and uncertainties. Although the Company believes such statements are reasonable, it can make no assurance that such statements will prove to be correct. Such statements are subject to certain factors that may cause results to differ materially from the forward-looking statements. Such factors include the risk factors discussed in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, a copy of which may be obtained from the Company without charge. The Company undertakes no obligation to publicly release results of any of these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected results.