American Bank Note Holographics Reports First Quarter 2007 Financial Results.

ROBBINSVILLE, N.J. -- American Bank Note Holographics, Inc. ("ABNH" or the "Company") (OTC Bulletin Board: ABHH) a world leader in the origination, production and marketing of holograms for security applications, today announced financial results for the first quarter ended March 31, 2007.

Sales in the first quarter of 2007 totaled $7.3 million, compared with $10.0 million in the first quarter of 2006, a decrease of $2.7 million or 27%. The decrease in sales was principally the result of the previously announced cessation of Gen 1 HoloMag(TM) programs that peaked in the first quarter of 2006 offset in part by an expansion of other programs in the transaction card market including the launch of Gen 2 HoloMag and an expansion of the HoloCard(TM) program.

The Company reported net income of $1.0 million or $0.05 per share in the first quarter of 2007 compared to net income of $1.0 million or $0.06 per share in the first quarter of 2006. Higher net income as a percentage of sales has been achieved primarily as a result of the effect of cost reductions associated with the consolidation of our facilities in Robbinsville, New Jersey, lower overall headcount due to improved efficiencies in our operations and certain HoloMag related charges in the 2006 period that do not recur.

Kenneth H. Traub, President and CEO of ABNH, commented, "We have come a long way over the past year. We have strengthened our position in the secure payment card industry, deepened our penetration in other product and document security markets and continued to improve profit margins with improved operating efficiencies throughout the business. We remain excited about our prospects for growth as we continue to implement and expand effective programs for card issuers, governments and consumer branded products to address the escalating global issue of product and document counterfeiting."

Mark J. Bonney, Executive Vice President and CFO of the Company stated, "We are achieving increasing financial benefits from our facilities consolidation and other initiatives to improve operating efficiency as reflected by the improvement in gross margin as a percentage of sales and reduction in selling and administrative expenses. With no debt and over $16 million in cash, the Company's financial condition remains strong."

About American Bank Note Holographics, Inc.

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 of transaction cards, identity documents, documents of value, pharmaceuticals and other consumer and industrial products. The Company's headquarters is in Robbinsville, NJ. For more information, visit www.abnh.com.

ABNH Forward-Looking Statement 

Certain statements contained in this release, including without limitation, statements containing the words "believes," "intends," "expects," "anticipates," and words of similar import, constitute "forward-looking statements" within the meaning of the private securities litigation reform act of 1995. Such forward-looking statements are based on current management expectations. Numerous factors, including those disclosed herein, those related to transaction card industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2006), may cause results to differ materially from those anticipated in the forward-looking statements. Many of the factors that will determine our future results are beyond our capability to control or predict. These statements are subject to risks and uncertainties and therefore actual results may differ materially. Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

This release and prior releases are available on the ABNH website at www.abnh.com.

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