Document Security Systems and PaperlinX Limited Announce International Distribution Agreement for New SecurelinX(R) Security Paper.

ROCHESTER, N.Y. -- Document Security Systems, Inc.

--Largest Fine Paper Distributor In The World To Use Document Security Systems' Patented AuthentiGuard(TM) Pantograph Technology To Create And Distribute New Line Of Security Paper

--Supplier Alliance Represents One of the Largest Potential Sales Agreements in DSSI's History as a Provider of Print Security Technology

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 signed an international distribution agreement with PaperlinX Limited (ASX: PPX) for it to sell DSSI's SecurityPaper throughout its global distribution system outside of North America. The supplier alliance with PaperlinX represents one of the largest potential sales agreements in DSSI's three-year history as a provider of print security technology.

PaperlinX, the largest fine paper distributor in the world with over AUD$7.5 billion (approximately US$5.7 billion) in annual sales, will initially begin offering DSSI's security paper under the brand SecurelinX. The paper is expected to be available in February 2006 to PaperlinX's customers in Europe, Australia and New Zealand . SecurelinX will be available in A4 250- and 500-sheet packs, for standard office use, and in various press sheet sizes for large format print applications. It will be sold through the PaperlinX sales channel to corporations, financial institutions, governments, security printers and commercial printers.

SecurelinX will incorporate DSSI's patented AuthentiGuard(TM) Pantograph 4000 hidden-message technology. AuthentiGuard(TM) Pantograph 4000 represents the most advanced pantograph technology on the market today, and it is the only print security technology that works with essentially all of the current models of digital copiers, printers and desktop scanners. Any communication materials using the SecurelinX security paper will reveal hidden words such as "VOID" or "UNAUTHORIZED COPY" when they are copied or scanned on a black and white copier, color copier or desktop scanner.

Patrick White, Chairman, President and CEO of DSSI noted, "Because of PaperlinX's extensive global paper merchanting network, we believe our alliance with them will drive significant revenue growth for us in 2006 and beyond." He added, "We are thrilled to work with a global leader such as PaperlinX to help them address their strategy of providing the best products for their customers and building solid, quality brands. We look forward to the success of our alliance."

The agreement between DSSI and PaperlinX for the SecurelinX security paper brand provides PaperlinX exclusive international distribution rights for DSSI Safety Paper products in Europe, Australia and New Zealand. Exclusive North American distribution rights for DSSI's SecurityPaper were awarded to Boise Paper at the end of 2004.

Eduard de Voogd, CEO of PaperlinX Europe, commented, "As digital scanning, printing and copying technology rapidly advances, counterfeiting has become an increasingly significant international problem. This agreement with Document Security Systems allows us to offer our customers a secure paper product that helps them protect their documents, forms and other paper materials."

About PaperlinX

PaperlinX is the world's leading fine paper merchant and Australia's principal manufacturer of quality communication and packaging paper. The company sells four-and-a-half million tons of paper and packaging materials worldwide. With global headquarters in Melbourne, Australia, PaperlinX operates regional management teams in Melbourne, Amsterdam, Los Angeles and Singapore. PaperlinX employs over 10,000 people in 30 countries and is listed on the Australian Stock Exchange, trading under the ticker symbol: PPX.

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.