American Bank Note Holographics Second Quarter Net Income Up 60% On Sales Increase Of 52%.

ELMSFORD, NY--(BUSINESS WIRE)--August 5, 1998--American Bank Note Holographics, Inc. (NYSE:ABH) ("ABH") today announced results for the second quarter ended June 30, 1998.

ABH's sales for the second quarter increased 52% to $9.6 million from $6.3 million for the same quarter in 1997, while net income increased 60% to $2.3 million, or $.17 per share, from $1.4 million, or $.10 per share in 1997. Revenues for the six month period ended June 30, 1998 were up 44% to $16.6 million from $11.5 million in 1997, while net income nearly doubled to $4.1 million, or $.30 per share, from $2.1 million, or $.15 per share, in the first half of 1997.

Josh Cantor, President of ABH, commented, "We are pleased with the results for the quarter and first six months of the year. Our strong performance reflects expanded sales of secure holographic products. These results reflect the Company's continued commitment to revenue growth and margin improvements."

American Bank Note Holographics ("ABH") is a world leader in the origination, production, and marketing of mass-produced secure holograms. The Company's holograms are used for security applications, such as counterfeiting protection for credit and other transaction cards, identification cards and documents of value, as well as for tamper resistance and authentication of high-value consumer and industrial products. -0-

                AMERICAN BANK NOTE HOLOGRAPHICS, INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
               (In thousands, except per share amounts)

                                 Three Months Ended   Six Months Ended
                                     June 30,            June 30,
                                 1998     1997       1998       1997

Sales                          $ 9,581   $ 6,296   $16,616  $11,537
Cost of goods sold               4,007     2,591     6,445    5,220
  Gross profit                   5,574     3,705    10,171    6,317
Selling and administrative
 expense                         1,502     1,103     2,758    2,413
  EBITDA                         4,072     2,602     7,413    3,904
Depreciation  and amortization
 expense                           292       288       584      581
Operating income                 3,780     2,314     6,829    3,323
Interest income, net (expense)     (26)      106       (21)     215
Income before taxes              3,754     2,420     6,808    3,538
Tax on income                    1,475       998     2,736    1,459
Net income                     $ 2,279   $ 1,422   $ 4,072  $ 2,079
Earnings per common share -
 basic and diluted             $  0.17   $  0.10   $  0.30  $  0.15
Shares used in computing per
 share amounts                  13,636    13,636   13,636    13,636

     Certain matters discussed in this press release contain forward
looking statements that involve risk and uncertainties including, but
not limited to future revenues, earnings prospects and the Company's
ability to execute its business plan. Although the Company believes
that its expectations are based on reasonable assumptions, it can give
no assurance that anticipated results will occur. Parties receiving
this release are encouraged to review all filings made by the Company
with the Securities and Exchange Commission.

CONTACT: AMERICAN BANK NOTE HOLOGRAPHICS

Joshua C. Cantor, President

[phone]

www.abnh.com

INVESTOR RELATIONS COUNSEL

The Equity Group Inc.

Loren Goldstein  [phone]

Linda Latman [phone]