Document Security Systems Signs Agreement to Move Its Secure Plastic ID Card Manufacturing Unit ("P3") To A New, Expanded Facility To Meet Growing Global Demand.

New 25,000 Square Foot Facility Expected To Be Operational in July 2007

ROCHESTER, N.Y. -- Due to the increased demand for AuthentiGuard[R] technology solutions, Document Security Systems, Inc. (AMEX: DMC) ("DSS"), a leader in proven, patented optical security technologies and products that protect against counterfeiting and brand fraud due to unauthorized copying, scanning and photo imaging, announced today that it has signed a Lease on a new manufacturing facility that will expand its plastic printing division, Plastic Printing Professionals (P3).

The new 25,000 sq. ft facility, which is five times the size of P3's current facility, is located in Brisbane, CA, a suburb of San Francisco. In conjunction with the move, the Company will make significant upgrades to its production equipment.

According to Peter Ettinger, president of Document Security Systems, the expansion is necessary to accommodate the increased volume the company is experiencing due to the growing global interest in its secure identification and access cards that carry DSS' proprietary AuthentiGuard[R] technologies, particularly within government markets. Mr. Ettinger said he expects the new facility to be operational in July 2007 and that the increased capacity would enable P3 to be a significant driver of DSS' revenue growth later this year.

Once the facility is complete, DSS, which is a voting member of the North American Security Products Organization (NASPO), will request a NASPO Security Risk Management Audit for certification purposes. A NASPO certification verifies that a facility is compliant with the documented best practices in risk reduction infrastructure, systems, and techniques that assure secure manufacturing processes to prospective clients.

"This increase in demand is due in large part to the fact that P3's distributors have done an outstanding job communicating the message that layering plastic cards like identification or access IDs, containing DSS solutions with other technologies like RFID or Biometrics, create the ultimate line of defense against counterfeiting. Our distributors have exceeded our expectations in educating global governments and companies of the uniqueness of our secure product line. The expansion of our P3 facility will enable us to produce larger-volume orders and decrease our production times, resulting in higher revenues and greater profits for DSS," explained Ettinger.

P3, a division of DSS is a security printer specializing in plastic cards containing security technologies. The company provides the ability to combine innovative security and anti-counterfeiting technology with unique manufacturing techniques to produce plastic cards such as ID cards and drivers licenses; phone, bank and gift cards; and other plastic documents that incorporate Document Security Systems' anti-counterfeiting AuthentiGuard[R] technologies.

About Document Security Systems, Inc.

A rapidly growing security technology company, Document Security Systems, Inc. (AMEX: DMC) is a leader in proven patented protection against counterfeiting and unauthorized copying, scanning and photo imaging of critical documents forms, identification and packaging. The company offers a broad portfolio of anti-counterfeiting technologies, systems and products, and provides consulting for customized document security printing solutions. Its various anti-scanning technologies and products are used in a number of applications, but not limited to currency, vital records, brand protection, labels, tickets, ID Cards, passports and gift certificates. Document Security Systems 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, www.legalstore.com and www.plasticprintingprofessionals.com.

About Plastic Printing Professionals (P3)

P3, a division of DSS is a security printer specializing in plastic cards containing security technologies. The company combines innovative security and anti-counterfeiting technology with unique manufacturing techniques to produce plastic cards such as IDs and drivers licenses; phone, bank and gift cards; and other plastic documents that incorporate, RFID, Biometrics and Document Security Systems' anti-counterfeiting AuthentiGuard technologies. P3 is continuously developing new technologies to prevent illicit card duplication while incorporating their solutions into a wide range of custom applications. More information about P3 and their extensive plastic product line can be found at 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 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.