Document Security Systems Launches New Internet Delivery System with Top Global Bank's Latin American Subsidiary


DSS's AuthentiGuard(TM) On-Demand Technology, which Enables Bank Customers to Produce Secure, Verifiable Documents Delivered over the Internet, has Wide-Ranging Multi-Industry and Homeland Security Applications

ROCHESTER, NY, September 6, 2006 - 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 has completed testing and has officially launched its AuthentiGuard(TM) On-Demand offering with a bank subsidiary of one of the world's top five financial institutions. AuthentiGuard(TM) On-Demand is available to the Bank's division branches in Latin America. The licensing agreement and subsequent product testing commenced in March 2006.

Mr. Peter Ettinger, President of DSS, commented, "AuthentiGuard(TM) On-Demand is not only our first entry into digitally delivered security solutions, it is also a disruptive technology, which we expect will revolutionize the security printing industry. Our successful launch provides us with a platform to further market our new offering to prospective customers and sales partners throughout the world."

AuthentiGuard(TM) On-Demand is an internet delivery system using DSS's patent pending technology for creating secure, verifiable documents that can be transmitted and printed over the internet. This is the first application of this covert method for producing highly secure documents, such as financial instruments and documents, at multiple locations. DSS is also providing the Bank with a customized web-hosting site for the securitization process.

The Bank has the ability to input data from its offices that is subsequently converted, via the host site, using DSS's AuthentiGuard(TM) On-Demand technology, into the resulting document. The secure document can then be accessed by bank clients and printed 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.

Mr. Ettinger, said, "Companies in a wide variety of industries beyond banking could save millions in print manufacturing and direct mail costs such as postage and mailing expenses. We believe our technology will not only enhance the widely-used bar code system which is virtually defenseless against duplication and forgery but it also has major Homeland Security implications. Now that AuthentiGuard(TM) On-Demand is fully operational, we are in talks to expand the use of this technology to such products as electronically delivered secure airline boarding passes as well as gift certificates, event tickets, rebates, checks, coupons, or any other document of value which requires protection and authentication."

As announced in March 2006, the three-year agreement with the Bank includes implementation and initial set-up fees for the Bank's website, as well as annual licensing and infrastructure maintenance fees. The Bank has expressed interest in expanding the technology to a multitude of documents that can be used throughout their system around the world. DSS anticipates significant revenue from the banking industry as well as from increased applications for the technology within the global marketplace.

Due to security reasons, DSS's client, which has approximately $25 billion in assets, requested it, and its parent company, 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) 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

Document Security Systems Inc.
First Federal Plaza
28 East Main Street
Rochester, NY 14614

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