Document Security Systems Announces First Chinese Project Under Its Agreement with BTI.

Single City in First Province Expected to Yield Minimum $1.5 Million to DSS Over Term of Agreement

Numerous Additional China-Based Projects Anticipated

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 an initial project under its agreement with Barcode Technology ("BTI") to market and produce DSS' technologies, both independently and in combination with BTI's technology, in China. Under the contract, BTI's Chinese Joint Venture provides security technology applications to an initial city, in its first contracted province. The contract is expected to generate minimum royalties of $1.5 million to DSS over the term of fulfillment. BTI will also contract with DSS to provide training support surrounding this and additional agreements in 2007.

Peter Ettinger, DSS' President, noted, "The enormous potential of our agreement with BTI can only be glimpsed with the receipt of this initial contract. Today's announcement represents the tip of the iceberg in terms of the market for security applications in China. Government and business entities in China are dealing with the same security and brand protection issues being faced worldwide. When you combine the technologies offered by DSS and BTI, you have an unbeatable product that provides unparalleled security as well as unique authentication and verification tools."

Ian Altman, Managing Director of BTI, stated, "This first agreement illustrates the unique security solutions BTI and DSS bring to market to address our customers' needs in China and throughout the world. We look forward to working with DSS in providing similar anti-counterfeiting protection in this enormous market. This first city, in a single province, is only an initial step in delivering much-needed anti-counterfeiting solutions throughout China."

Mr. Ettinger concluded, "Our technology-based product suite is complementary to BTI's pharmaceutical, healthcare, packaging, manufacturing, brand security, financial services and government applications. This $1.5 million contract represents only a fraction of the royalty potential we foresee under our partnership with BTI as we address China's security needs. We look forward to extending our relationship with BTI in regions throughout the world."

Due to the sensitive nature of this project, DSS has agreed not to disclose additional details about the agreement at this time.

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 BTI

BTI (International Barcode Corporation d/b/a BTI) is a global leader in electronic forms automation, security and authentication, identification, and innovative bar code solutions. BTI and its subsidiaries (BTI) have a history that dates back to 1978. Using patented and patent pending software technology, BTI provides solutions to clients across industries including government, security, pharmaceutical, healthcare and hospitals, retail inventory and packaging, manufacturing, brand protection and management, financial and reporting services. BTI has offices in the U.S., and a significant worldwide presence though a rapidly growing number of licensees and joint ventures. BTI's technology was instrumental in security applications for the 2007 Asian Winter Games. BTI's ITM subsidiary is the 2007 IBM Lotus CTO Innovation Award Winner and 2007 Finalist for Best IBM WorkPlace Forms Solution. For more information about BTI and its affiliated companies, visit its website at: www.rssbarcode.com

Safe Harbor Statement

This release contains forward-looking statements regarding expectations for future financial performance, which 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 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 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.