Document Security Systems Readies Beta Testing for AuthentiGuard® Authentication Solution for iPhones

  Document Security Systems Readies Beta Testing for AuthentiGuard®
  Authentication Solution for iPhones

Advanced DSS technology can reduce the need for costly proprietary scanners
and complex training, making mass scale package security more efficient

Business Wire

ROCHESTER, N.Y. -- February 8, 2013

Document Security Systems, Inc. (NYSE MKT: DSS; "DSS"), a leading developer of
anti-counterfeiting, anti-fraud and authentication technologies for
governments, corporations and financial institutions, announced today that it
will begin testing AuthentiGuard®, a patented iPhone application for
authentication, targeted to major pharmaceutical and other companies
worldwide. Testing on other platforms including Android is expected to take
place during this year.

DSS’ cloud-enabled, next generation solution can reduce the need for costly
proprietary authentication hardware and complex training. It permits efficient
and cost effective authentication for packaging, documents and credentials.
The solution embeds customizable, covert AuthentiGuard® Prism technology that
resists duplication on copiers and scanners in a product's packaging. Product
verification using the iPhone application creates real-time, accurate
authentication results for brand owners that can be integrated into existing
information systems

“Competing solutions for reading covert authentication features rely on
proprietary devices such as readers that can cost as much as $1500 a unit and
typically require tracking of the device and extensive operator training,”
said Robert Bzdick, DSS interim CEO. “DSS’s AuthentiGuard® solution permits
real-time authentication and reading of other information such as bar codes,
while allowing the brand owner access control over users of the application.
This solution is designed for ease of use with intuitive functions and is
ideal for major manufacturers, such as pharmaceutical companies.”

AuthentiGuard is designed to continuously evolve and adapt to respond to
constantly shifting gray market and counterfeit strategies. Standard features
include: concurrent authentication and reading of 2D barcodes; and providing
GPS tracking information, integration with cloud based security servers or
local databases and reporting of results via a response messaging system.

The DSS Digital Solutions Division can provide any level of integration or
customization that may be required by a particular customer or brand.

About DSS

Document Security Systems develops and provides patented anti-counterfeiting,
anti-fraud, authentication and brand protection technologies that are employed
by governments, leading corporations and financial institutions. DSS works
closely with clients, including Fortune 500 companies, to design proprietary
technology solutions that deter unauthorized scanning and copying, and
facilitate authentication of printed documents and packaging. DSS helps to
reduce fraud in drug prescription redemptions and health insurance documents.
The company deters counterfeiting of valuable documents, coupons and
packaging, including those associated with credit and identity cards. DSS’
technology is specified by a United States government agency for identity
documents. DSS product solutions are protected under United States and foreign
patent law and under trade secrets. For more information please visit
www.DSSsecure.com

Safe Harbor Statement

The statements contained in this press release that are not purely historical
are forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended and Section 21E of the Securities Exchange
Act of 1934, as amended, and are intended to be covered by the safe harbors
created thereby. These forward-looking statements include, but are not limited
to, statements regarding expectations for future financial performance,
potential sales from new and existing customers, expected benefits from the
Company's cost cutting efforts and/or statements preceded by, followed by or
that include the words "believes," "could," "expects," "anticipates,"
"estimates," "intends," "plans," "projects," "seeks," or similar expressions,
all of which involve uncertainty and risk. Many of these risks and
uncertainties are discussed in the Company's Annual Report on Form 10-K for
the fiscal year endedDecember 31, 2011,filed with the Securities and
Exchange Commission (the "SEC") on March 19, 2012, and in subsequent reports
filed with the SEC, including the Company’s Amendment No.1 to Form S-4
Registration Statement filed on January 15, 2013, all of which are available
at the SEC's website atwww.sec.gov. It is possible the company's future
financial performance may differ from expectations due to a variety of factors
including, but not limited to, the risks referred to above, and 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.

Contact:

Investor Relations:
CEOcast, Inc.
James Young, 212-732-4300
mwachs@ceocast.com
or
Media:
Brody Berman Associates
Bruce Berman, 212-683-8125
bberman@brodyberman.com