Bernstein Liebhard & Lifshitz Commences Class Action On Behalf of Purchasers of American Bank Note Holographics, Inc. Common Stock.

NEW YORK--(BUSINESS WIRE)--Jan. 21, 1999--A securities class action lawsuit was commenced today on behalf of purchasers of the common stock of American Bank Note Holographics, Inc. (NYSE:ABH) ("ABNH" or the "Company"), between July 15, 1998 and January 15, 1999, inclusive (the "Class Period") in the United States District Court for the Southern District of New York. The lawsuit alleges violations of the federal securities laws and names as defendants the Company and certain of its officers and directors.

The complaint charges ABNH and certain of its officers and directors with violations of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that the defendants made a series of materially false and misleading statements about the Company's financial and operating condition and results. Specifically, the complaint charges that ABNH improperly recognized revenue for the fiscal quarters ended June 30, 1998 and September 30, 1998 in violation of Generally Accepted Accounting Principles and SEC rules and regulations so that ABNH will be required to restate its revenue for those periods.

Bernstein Liebhard & Lifshitz, LLP allege that as a result of these misrepresentations and omissions, the price of ABNH's common stock was artificially inflated throughout the Class Period.

Plaintiff seeks to recover damages on behalf of all purchasers of ABNH common stock during the Class Period.

If you purchased ABNH stock during the Class Period, and either lost money on the transaction or still hold the stock, you may wish to join in the action to serve as lead plaintiff.

In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers within 60 days of January 19, 1999. This early notice to class members is being made pursuant to applicable law.

Plaintiff has selected Bernstein Liebhard & Lifshitz, LLP to represent the Class. The attorneys at Bernstein Liebhard & Lifshitz, LLP have extensive experience in securities class action cases, and have played lead roles in major cases over the past several years which have resulted in recoveries of tens of millions of dollars to investors.

The attorneys at Bernstein Liebhard & Lifshitz, LLP have been recognized by courts for the high quality of their legal representation of defrauded investors. The firm also has extensive experience in corporate and shareholder litigation, consumer protection and other areas of complex litigation.

If you would like to discuss this action or if you have any questions regarding this Notice or your rights as a potential class member or lead plaintiff, you may contact: Mel E. Lifshitz, Esq. or Michael S. Egan, Esq., at Bernstein Liebhard and Lifshitz, LLP, 10 East 40th Street, New York, New York 10016, 800/217-1522 or 212/779-1414, or by e-mail at [e-mail].