Document Security Systems Inc. Wins Licensing Agreement with Top Global Bank's Latin American Subsidiary; DSS's Technology Enables Bank Customers to Produce Secure, Verifiable Documents over the Internet.

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 licensing agreement with a bank subsidiary of one of the world's top five financial institutions. The license provides for an internet delivery system using DSS's patent pending Securdocs(TM) technology for creating secure, verifiable documents that can be transmitted and printed over the internet. DSS will provide the Bank, which is located in Mexico, a customized web-hosting site for the securitization process.

The three-year agreement includes implementation and initial set-up fees for the Bank's website, as well as annual licensing and infrastructure maintenance fees. This is the first application of this covert method for producing secure documents, such as financial instruments, at multiple locations. Although anticipated revenue from this project is not significant, DSS anticipates that this initial prototype could develop into a major new product offering.

Patrick White, Chairman, President and Chief Executive Officer of DSS, commented, "We are employing for our customer a disruptive technology, which we expect will revolutionize the security printing industry. Highly secure and verifiable documents can now be electronically transmitted to commercial clients and consumers via the internet who can then print on location. We believe our technology has the potential to eventually replace the widely-used bar code system which is defenseless against imitation and forgery. In conjunction with the security value of Securdocs(TM), it has the added benefit of being cost effective for our customers because of the savings realized from reducing security printing and direct mail costs."

Once its host system is operational, the Bank will have the ability to input data from its offices that subsequently is converted via the host site using DSS's Securdocs(TM) technology into the resulting document. The secure document can then be accessed and printed by bank clients on their office printers. In contrast to the vulnerable bar code technology used currently by the web-based document industry, a document containing DSS's verifiable technology can not be compromised and provides authentication measures against forgery and fraud.

A digital document containing Securdocs(TM) technology when printed cannot be copied or duplicated in any form and the original hard copy document maintains the hidden verification feature. This unprecedented security technology enables immediate delivery of highly secure and verifiable financial instruments directly to clients and consumers, while eliminating costly direct mail and security printing expenses. Current security documents and forms are printed by security printers and delivered in original hard copy form. This technology can be applied to electronically delivered airline boarding passes, gift certificates, event tickets, rebates, coupons, or any other document of value which requires protection and authentication.

Due to security reasons, DSS's customer, which has approximately $25 billion in assets, requested it, and its parent, not be named in media communications.

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 websites: www.documentsecurity.com and www.plasticprintingprofessionals.com

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