Document Security Systems Agrees to Potential Multi-Million Dollar Premier Marketing and Distribution Partnership with Identification and Data Imaging, LLC.

Agreement includes $1.0 million minimum guarantee; Begins with initial order for secure drivers' licenses to be delivered in January 2007

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 that it has established a Premier Marketing and Distribution partnership with Identification and Data Imaging ("IDI"), a distributor of a wide range of visual and electronic identification products and solutions. IDI has agreed to purchase a minimum of $1.0 million of DSS's products in 2007.

IDI placed this month an initial test order for drivers' licenses that will be produced by DSS's Plastic Printing Professionals ("P3") subsidiary to be delivered in January 2007. If this test order is successful, IDI indicated that significant follow-on orders will be placed. IDI also indicated that it expects its relationship with DSS to grow substantially beyond the $1.0 million guarantee and to develop into a multi-million dollar business that could have a significant impact on DSS's revenue and profitability in 2007 and beyond.

Peter Ettinger, President of DSS, said, "This initial drivers' license order from IDI is a direct result of marrying DSS's state-of-the-art anti-counterfeiting technologies with the proven and respected products already being produced by our P3 subsidiary, which DSS acquired earlier this year. IDI is winning new business as a result of our combining DSS technology with P3's existing product line. This partnership has the potential to be a major step in our goal of achieving profitability by the end of 2007."

Jeff Brodsky, President of IDI, stated, "The anti-counterfeiting technologies offered by Document Security Systems are superior to anything else on the market. We have extensive experience in this industry and, after exhaustive due diligence and evaluation, we have concluded that DSS's technology is the most reliable way to protect the documents and plastic cards we market to our clients. DSS's technology and manufacturing capabilities will enable IDI to penetrate new markets and to grow our business with existing customers by marketing the most reliable and cost effective document security products in the industry."

IDI, located in Port Washington, New York, is a leading distributor of an entire range of visual and electronic identification products and solutions, which include paper and plastic documents such as identification badges, room keys and promotional cards for a range of clients including major insurance companies, casinos and hospital organizations.

Mr. Ettinger added, "As our marketing partner, IDI will be able to open doors to several important markets for our patented technologies, ranging from simple, secure building access to government-sponsored ID cards and licenses. This is a breakthrough for DSS. It demonstrates that by combining our technologies with the printing capabilities we acquired earlier this year, and that by aligning ourselves with such distribution partners as IDI, we have positioned DSS on the path to significant growth in 2007 and beyond."

As previously announced, DSS and IDI jointly unveiled new security products, which were specifically designed for the gaming industry, at the Global Gaming Expo at the Las Vegas Convention Center in November. Products that DSS and IDI presented at the Expo included secure patent pending gaming chips, slot receipts, identification badges and other verifiable, secure printing products that provide solutions for the gaming industry's security needs.

Under its newly initiated "Premier Marketing and Distribution Partner" program, DSS and selected marketing partners enter into agreements under which DSS is guaranteed a minimum level of revenue in exchange for limited exclusivity and preferred pricing. DSS expects to announce additional Premier Marketing Partner agreements over the coming weeks and months.

About Document Security Systems, Inc.

A rapidly growing security technology company, Document Security Systems is a world leader in the development of optical deterrent technologies that help prevent counterfeiting and brand fraud from the use of the most advanced scanners, copiers and imaging systems in the market. The Company's patented and patent-pending technologies protect valuable documents and printed products from counterfeiters and identity thieves. Document Security Systems' customers, which include international governments, major corporations and world financial institutions, use its covert and overt technologies to protect a number of applications including, but not limited to, currency, vital records, brand protection, ID cards, internet commerce, passports and gift certificates. Document Security Systems' strategy is to become the world's leading producer of cutting-edge security technologies for paper, plastic and electronically generated printed assets. More information about Document Security Systems can be found at its websites: www.documentsecurity.com and www.plasticprintingprofessionals.com.

About Identification Data and Imaging (IDI)

Identification Data & Imaging (IDI) is the single-source provider of visual and electronic identification systems, CCTV, peripherals and supplies to companies and organizations in the private and public sectors. IDI provides an entire range of identification product solutions, from complete ID card printing systems to data encoders, cards with a broad range of functionality and a wide range of accessories and supplies designed to provide the utmost security for a business or facility. IDI holds various government contracts and has a large clientele from military bases to Veterans Administration Medical Centers throughout the country. In addition to its Long Island headquarters, IDI has a software development division located in Tennessee and satellite sales and support offices in Maryland (DC area) and Alabama. More information about IDI can be found at www.idius.com

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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 which the Company 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.