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Document Security Systems Expands Intellectual Property Position
Company Adds New Patent, Files Seven Applications Adding to Anti-Counterfeiting and Brand Protection Arsenal

ROCHESTER, NY, January 11, 2008 – Document Security Systems, Inc. (AMEX: DMC), a leader in proven, patented protection against counterfeiting and unauthorized copying, scanning and photo imaging, announced today that during 2007, the Company made continued progress surrounding its intellectual property position including a new patent issued in Europe. The company now has 9 patents covering a wide-spectrum of anti-counterfeiting products and technologies.

Patrick White, Chairman and CEO of DMC, commented, “We are encouraged about the great degree of research and development work we’ve taken on at DMC and the impact it’s had on our work throughout the U.S. and Europe. Specifically, this new award supports our commercialization efforts into European markets with an authentication technology that has already been recognized and implemented throughout the U.S. as well as in other international markets.”

He continued, “Our IP progress especially in Europe is particularly important to recognize when you look at our ongoing litigation with the ECB. Our existing customers increasingly recognize the value we provide in securing their documents, credentials and packaging. It is unfortunate that to date the ECB has been reluctant to utilize our state-of-the-art anti-counterfeiting and deterrent technologies to protect the Euro, one of the most frequently counterfeited currencies in the world. However, we remain committed to enhancing our intellectual property and solidifying our position as the industry leader with solutions that prevent the unauthorized scanning and photo imaging of printed materials, and an emerging leader in authentication of mission-critical documents and credentials.”

During 2007, the Company’s patent activity included:

New patents issued:
•    Patent number EP1626870 was issued in Europe, extending Prism™, especially suited for plastic and laminated documents.

New published applications for patents:

•    US 11/740,696; PCT/US07/67537: covering solid color security technology;

•    US 11/741,394; PCT/US07/67657: covering a system to create variable authentication viewers that are linked to a secure document source;

•    US 11/686,806: covering survivable image security technology;

•    US 11/741,513; WO 2007 127944: covering double blind security technology with two-tiered covert images;

•    US11/839,657: covering “Single Color Prism”, an extension of prism, especially suited for black and white printer applications including On-Demand™;

•    US 11/744,840; PCT US07/68311: covering Pantograph 5000™, new pantograph technology incorporating a wider range of scanning applications; and

•    US 11/774,464; PCT/US/07/73002: an extension of secure print features for specific applications in ID and credential products.

About Document Security Systems, Inc.
A rapidly growing security technology company, Document Security Systems is a world leader in the development of optical deterrent technologies that help prevent counterfeiting and brand fraud from the use of the most advanced scanners, copiers and imaging systems in the market. The Company’s patented and patent-pending technologies protect valuable documents and printed products from counterfeiters and identity thieves. Document Security Systems’ customers, which include international governments, major corporations and world financial institutions, use its covert and overt technologies to protect a number of applications including, but not limited to, currency, vital records, brand protection, ID cards, internet commerce, passports and gift certificates. Document Security Systems’ strategy is to become the world’s leading producer of cutting-edge security technologies for paper, plastic and electronically generated printed assets. More information about Document Security Systems can be found at its websites: and

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 which the Company 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.


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