Document Security Systems Inc. Signs Agreement with Banknote Corporation of America; DSS Secures Contract with Major High Security Printer in the U.S.

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, today announced that it signed a nonexclusive licensing agreement for its AuthentiGuard(TM) Pantograph 4000 technology with Banknote Corporation of America (BCA). The term of the contract is two years with an annual contract review and optional automatic two-year extensions.

As one of the country's premier high security printers, BCA produces high security documents with innovative designs in accordance with strict quality and accountability standards in a totally secure environment. It is a global provider of a variety of secure documents, such as checks, stamps, identification documents and labels for various national and state governments as well as numerous private sector companies.

Mr. Patrick White, Chairman, President and Chief Executive Officer of DSS, commented, "We offer one of the world's most advanced and comprehensive versions of pantograph technology. Banknote Corporation of America recognizes the value of our technology and the demand from its end-user customers. BCA is a highly regarded security printer with a broad customer base and global reach. With the breadth and depth of our anti-counterfeiting technology portfolio for all forms of print, coupled with BCA's unique manufacturing capabilities of secure documents, we believe this agreement is the first step towards establishing a strong and long-term partnership."

Mr. Dave Canon, General Manager of Banknote Corporation of America, noted, "We are pleased to incorporate DSS's technology into our check print products. We recognize that print security needs are growing rapidly as counterfeiting techniques continue to advance across various forms of print. Our partnership with DSS enables us to provide our customers with the utmost security features available in the market today."

The AuthentiGuard(TM) Pantograph 4000 is a powerful, new patent-pending void pantograph technology that employs a hidden pantograph background for use in financial instruments such as checks, gift certificates, rebates and coupons. The patent-pending void pantograph embeds hidden warning words, logos, and designs into the document background. Images appear when using a handheld verifier, or when the document is scanned on a desktop scanner or digital copier.

DSS'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 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) Security 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 websites: www.documentsecurity.com and www.plasticprintingprofessionals.com.

About Banknote Corporation of America, Inc.

Banknote Corporation of America, Inc. (BCA) is a major high security printer in the United States, with headquarters in Chantilly, Virginia and a manufacturing plant in North Carolina. BCA's mission is to produce high security documents with innovative designs in accordance with strict quality and accountability standards in a totally secure environment.

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