Document Security Systems Inc. Announces Licensing Agreement With Kalamazoo Security Print Limited; DSSI's First European-Based Licensee.

ROCHESTER, N.Y. -- Document Security Systems, Inc. (AMEX: DMC) ("DSSI"), a leader in proven, patented protection against counterfeiting and unauthorized copying, scanning and photo imaging, today announced that it has entered into a nonexclusive licensing agreement for several of its AuthentiGuard(TM) brand technologies with Kalamazoo Security Print Limited. Kalamazoo is owned by Adare Group, a leading provider of security printing, mailing and data management solutions to leading businesses and organizations throughout the United Kingdom, Ireland and through an international distribution network.

Patrick White, Chairman, President and CEO of DSSI stated, "This agreement represents another milestone for Document Security Systems in that Kalamazoo Security Print Limited is the first European-based security printer to license our technologies. In doing so, Kalamazoo will be able to provide its customers with state-of-the-art solutions to combat the growing global problems of fraud, brand theft and counterfeiting of vital record documents. These problems know no national boundaries and cost businesses around the world billions of dollars, create major security concerns for governments, and cause the lives of law-abiding citizens to be less secure. Through partnerships such as this with Kalamazoo, DSSI's strategy is to make its advanced security technologies available to end-users throughout the world, so that businesses and governments can address these issues."

Laurence Harigan, General Manager of Kalamazoo Security Print Ltd., noted, "We are pleased to be able to incorporate DSSI's technology into our extensive portfolio of security products. We recognize that print security needs are growing rapidly as counterfeiting techniques continue to advance. We want to provide the best technologies available to help our customers protect their assets."

DSSI's AuthentiGuard(TM) technologies represent the leading anti-counterfeiting print security technologies on the market today and are the only known print security technologies that work with essentially all of the current models of digital copiers, printers and desktop scanners.

About Adare Group

Adare Group is the leading provider of print, mailing, and data management solutions to Blue Chip organizations throughout the UK and Ireland. Customers include leading corporate businesses, such as HBOS, National Australia Group, Sun Microsystems and The Economist. Adare Group has grown considerably over the last 10 years bringing together numerous companies, including Kalamazoo Security Print in 1997, Prontaprint in 1996 and Kall Kwik in 1999. Kalamazoo has a 100 year pedigree of providing business solutions to commerce and industry, offering extensive advice on document security and production.

About Document Security Systems, Inc.

Document Security Systems, Inc. (AMEX:DMC) is a leader in proven patented protection against counterfeiting and unauthorized copying, scanning and photo imaging. The company offers a broad portfolio of anti-counterfeiting technologies, processes and products, and provides consulting for customized document security printing solutions. Its various anti-scanning technologies and products are used for currency, vital records, packaging, labels, tickets, ID Cards, passports and gift certificates. Document Security Systems' products, such as its new AuthentiGuard(TM) safety paper, protect original documents from copying or duplication. Its 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 website: www.documentsecurity.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.