Document Security Systems, Inc. and Boise Cascade Partner to Provide Doctors with Enhanced Document Security for Medicaid Prescription Pads in Advance of October 2007 Legislative Deadline.

Boise Recognizes Document Security Systems' AuthentiGuard([R]) Technologies' Effectiveness at Stopping Fraud and Abuse of Prescription Drugs

ROCHESTER, N.Y. -- Document Security Systems, Inc. (AMEX: DMC) ("DSS"), a leader in proven, patented protection against counterfeiting and unauthorized copying, scanning and photo imaging, announced today that Boise Cascade has selected DMC to develop new secure, tamper-proof Medicaid prescription paper for prescription pads and related paperwork. The offering exceeds standards recently set forth in Medicaid legislation regarding paper-based anti-copy/anti-scan security features required in Medicaid papers starting in October 2007. DMC will work to provide anti-counterfeiting technology enhancements to its current security paper product, which is sold through Boise Cascade under the brand name, Boise([R]) BEWARE[TM].

ABOUT THE LEGISLATION

On May 25th, 2007, legislation H.R. 2206 was signed, requiring that states not pay pharmacies for prescriptions submitted after October 1, 2007 that do not have at least one of three characteristics designed to prevent fraud and abuse through the reproduction and/or modification of prescriptions. Those characteristics, according to a directive from the Department of Health & Human Services (HHS), Centers for Medicare and Medicaid Services, dated August 17, 2007, are:

* One or more industry-recognized features designed to prevent unauthorized copying of a completed or blank prescription form;

* One or more industry-recognized features designed to prevent the erasure or modification of information written on the prescription by the provider; and

* One or more industry-recognized features designed to prevent the use of counterfeit prescription forms.

Further, by October 1, 2008, all three anti-counterfeiting characteristics must be embedded in all Medicaid papers.

"Healthcare document fraud is a growing problem, with government agencies prosecuting more than $20 billion in Medicare and Medicaid fraud in 2004," said Geo Plumberg, Product Manager, Converting Papers, of Boise Cascade. "As a leader in specialty papers, we have ensured that Boise([R]) BEWARE[TM] meets current standards for Federal compliance. We have a long history of working with Document Security Systems and trust its leading anti-counterfeiting technologies, which have proven to be the healthcare industry's most effective defense against counterfeiting and fraud. We are currently evaluating a number of DMC security technologies to determine the best solution for the third tier of embedded Optical Variable Technology (OVT) on our Boise([R]) BEWARE[TM] security paper. As part of our commitment to meeting and exceeding these requirements, we are eager to work with physicians, health plans and hospitals and Document Security Systems to deliver proven, state-of-the-art technology long before the next deadline in October 2008, and help prevent dangerous fraud and abuse of prescription drugs."

Peter Ettinger, President of Document Security Systems, Inc., said, "This legislation will save lives and reduce fraud-related taxpayer expenses and Boise Cascade sees the benefits of immediate compliance as have its customers as DMC have recently seen an increase in these types of paper orders. Clearly counterfeiting is a huge crisis in the healthcare industry, and Boise is proactively attacking this problem. Together, Document Security Systems and Boise Cascade are delivering the most advanced technology available, proven to make it virtually impossible to reproduce or alter prescriptions, significantly limiting a person's ability to increase the quantity or obtain multiple fills of a single prescription."

About Document Security Systems, Inc.

A rapidly growing security technology company, Document Security Systems, Inc. (AMEX: DMC) is a leader in proven patented protection against counterfeiting and unauthorized copying, scanning and photo imaging of critical documents forms, identification and packaging. The company offers a broad portfolio of anti-counterfeiting technologies, systems and products, and provides consulting for customized document security printing solutions. Its various anti-scanning technologies and products are used in a number of applications, but not limited to currency, vital records, brand protection, labels, tickets, ID Cards, passports and gift certificates. Document Security Systems strategy is to become the world's leading producer of cutting-edge security technologies for printed products. More information about Document Security Systems can be found at its websites: www.documentsecurity.com and www.plasticprintingprofessionals.com.

About Boise Cascade, LLC 

Boise, headquartered in Boise, Idaho, manufactures engineered wood products, plywood, lumber, and particleboard and distributes a broad line of building materials, including wood products manufactured by the company. Boise also manufactures a wide range of specialty and premium papers, including imaging papers for the office and home and papers for pressure-sensitive applications, as well as printing and converting papers, containerboard and corrugated boxes, newsprint and market pulp. More information about Boise Cascade, LLC can be found at its website: www.bc.com.

Safe Harbor Statement

This release contains forward-looking statements regarding expectations for future financial performance, which involve uncertainty and risk. It is possible the Company's future financial performance may differ from expectations due to a variety of factors including, but not limited to, changes in economic and business conditions in the world, increased competitive activity, achieving sales levels to fulfill revenue expectations, consolidation among its competitors and customers, technology advancements, unexpected costs and charges, adequate funding for plans, changes in interest and foreign exchange rates, regulatory and other approvals and failure to implement all plans, for whatever reason. It is not possible to foresee or identify all such factors. Any forward-looking statements in this report are based on current conditions; expected future developments and other factors it believes are appropriate in the circumstances. Prospective investors are cautioned that such statements are not a guarantee of future performance and actual results or developments may differ materially from those projected. The Company makes no commitment to update any forward-looking statement included herein, or disclose any facts, events or circumstances that may affect the accuracy of any forward-looking statement.