Document Security Systems Announces Delay in Patent Validity Decision by Netherlands Court.

Decision Now Expected by March 12, 2008

ROCHESTER, N.Y. -- Document Security Systems, Inc. (AMEX:DMC) ("DMC"), a leader in proven, patented protection against counterfeiting and unauthorized copying, scanning and photo imaging, announced today that the District Court of the Hague in the Netherlands has rescheduled the release of its decision on the validity in the Netherlands of the Company's European Patent No 0455750B1 (the "Patent"). The judgment, which will be the outcome of a one-day hearing held on December 12, 2007, is now expected to be released by March 12, 2008.

Patrick White, CEO of Document Security Systems, commented, "A postponement is unfortunate but it has no bearing on our pursuit of infringement proceedings in Germany where our patent was ruled valid by the German courts. We will announce the Company's infringement strategy when our German lawyers have completed their review and analysis."

On August 1, 2005, DMC filed a patent infringement suit in the European Court of First Instance ("CFI") against the European Central Bank ("ECB") alleging that the Euro banknotes produced by the ECB infringe DMC's Patent. Subsequently, DMC received notice that the ECB had filed claims to invalidate the Patent with patent courts in France, Germany, the United Kingdom, the Netherlands, Austria, Italy, Spain, Luxembourg and Belgium. To date, the Patent has been validated in Germany, and the Patent was revoked in the United Kingdom and in France. The CFI ruled on September 5, 2007 that it was not the correct venue for infringement proceedings, which has opened the door for country-by-country infringement litigation.

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.

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 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.