Class Action Filed on Behalf of Purchasers of the Common Stock of American Bank Note Holographics, Inc. during the period July 15, 1998 through January 22, 1999.

WHITE PLAINS, N.Y.--(BUSINESS WIRE)--Feb. 2, 1999--Pursuant to Section 21D(a)(3)(i) of the Securities Exchange Act of 1934, notice is given that on February 1, 1999, Lowey Dannenberg Bemporad & Selinger, P.C. of White Plains, New York, filed a class action in the United States District Court for the Southern District of New York in White Plains, on behalf of a class of purchasers of American Bank Note Holographics, Inc. common stock (Symbol: ABH) during the period July 15, 1998 through January 22, 1999, inclusive (the "Class Period"). The suit names as defendants American Bank Note Holographics, Inc., its Chairman and Chief Executive Officer Morris Weissman, President Joshua Cantor, and Vice President-Finance Richard Macchiarulo for violations of the federal securities laws.

On January 19, 1999, American Bank Note Holographics, Inc. revealed that its entire reported financial history as a public company (the second and third quarters of 1998) had been materially overstated due to "inappropriate revenue recognition" and that these quarters would be restated. Upon receipt of news of the restatement, American Bank Note Holographics' stock fell from its January 19, 1999, close of $15.125 to a January 20, 1999 close of $4.625, losing 69.4% of its value in a single day's trading.

Then, on January 25, 1999, the Company revealed that revenues and net income for the year ended December 31, 1998 would be substantially lower than for the year ended December 31, 1997 and that the Company's interim financial statements for each of the first three quarters of 1998 would require restatement, not just the second and third quarters, as reported previously on January 19, 1999. The Company also disclosed for the first time on January 25, 1999 that net income for the 1996 and 1997 fiscal years (as contained in the Company's prospectus and registration statement for its July 1998 initial public offering) was materially overstated. The Company admitted that the financial statements contained in the registration statement, and the Report of Independent Auditors therein, should no longer be relied upon. When trading resumed on January 26, 1999, following a day of suspension from trading on January 25, ABH closed at $1-13/16, more than 50% lower than the January 22, 1999 close.

Plaintiff seeks to recover damages on behalf of class members and is represented by Lowey Dannenberg Bemporad & Selinger, P.C., which has significant experience and expertise prosecuting class actions on behalf of investors and shareholders. If you are a member of the class described above, you may, not later than March 20, 1999, move the Court to serve as lead plaintiff for the class. If you are a member of the class and desire more information about the case or your rights, please contact: Jill Rosell, Esquire at LOWEY DANNENBERG BEMPORAD & SELINGER, P.C., The Gateway, One North Lexington Avenue, White Plains, New York 10601, [phone], E-mail: [e-mail].