Document Security Systems Signs Agreement with The Ergonomic Group; Document Security Systems to Receive $1.0 Million in Fees In 2006.

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 that it has signed a letter of agreement (LOA) valued at $1.0 million with The Ergonomic Group (EGI). EGI will be granted an exclusive, limited right to use and market DSS's extensive portfolio of security technologies in its channel markets for a two year term.

DSS and EGI will jointly develop and market customized security solutions to EGI's client base in key vertical markets, primarily those in the high technology, aerospace, financial and healthcare industries. Under this agreement, DSS will receive an initial non-refundable license fee totaling $500,000 by not later than September 15, 2006, and an additional $500,000 in non-refundable pre-paid royalty fees by November 30, 2006. EGI will pay DSS royalty fees on all EGI sales for security products that contain DSS's technology. Both parties anticipate that product development should be completed by the end of 2006.

EGI is a technology solutions provider that analyzes and resolves business and Information Technology issues for its client customers. As a value-added reseller, its solutions encompass proven, best-of-breed technologies covering all areas of networking, storage, compliance, capacity planning, lifecycle management, and security. EGI holds approximately 4.9% of DSS stock as stated in its Form 13G filed on January 9, 2006.

Mr. Peter Ettinger, President of Document Security Systems, stated, "The Ergonomic Group has a strong technology presence in these critical vertical markets that are heavily impacted and defrauded by sophisticated counterfeiting methods. EGI recognizes the value of integrating our security solutions into their products and services to better address their clients' needs. We expect our partnership to accelerate our penetration into these markets seeking document security solutions for wide-ranging applications."

Mr. Robert T. Girards, Executive Vice President and Chief Operating Officer of The Ergonomic Group, stated, "We recognize the value of Document Security Solutions' technology in helping our clients save millions in costs resulting from counterfeited documents, checks, labels and forms. DSS provides a deep-layer of security that provides a nearly impenetrable line of defense against the proliferation of counterfeiting and brand fraud in our target markets. Our agreement with DSS allows us to develop business solutions that address the security needs of clients that are currently using multiple applications of our services and products. We look forward to actively marketing and promoting DSS's technologies to our customers, vendors and partners."

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 The Ergonomic Group

The Ergonomic Group (EGI) is a technology solutions provider that combines customer choice, a service-centric approach, and a regional commitment to help organizations solve their most pressing business and IT challenges. Featuring best-of-breed technologies, a unique "easy to do business with" approach, and experience that spans the desktop to the data center, EGI develops and implements robust IT solutions in six focus areas: networking, storage, security, compliance, capacity planning and lifecycle management. EGI's foundation of market-specific expertise and over 20 years of implementation experience ensure an ideal solution for every client. More information about The Ergonomic Group can be found at its website: www.ergogroup.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.