Document Security Systems Announces the German Federal Patent Court Confirms Patent Validity

Document Security Systems, Inc. (AMEX: DMC) ("DSS"), a leader in
proven, patented protection against counterfeiting and unauthorized
copying, scanning and photo imaging, announced today that the German
Federal Patent Court (Bundespatentgericht) in Munich, Germany, ruled
that the Company's European Patent No 0455750B1 (the "Patent") is a
valid patent in Germany. The judgment is the outcome of a one-day
hearing, which was held earlier today.

On August 1, 2005, DSS filed a patent infringement suit in the
European Court of First Instance against the European Central Bank
alleging that the Euro banknotes produced by the European Central Bank
("ECB") infringe DSS's European Patent No 0455750B1 (the "Patent"). On
March 24, 2006, DSS received notice that the ECB had filed a claim to
invalidity with the German Federal Patent Court. DSS had received
notice on March 24, 2006, of separate counterclaim lawsuits in the
United Kingdom and Luxembourg patent courts seeking the invalidation
of the Patent. Claims to invalidity, largely in the same form, were
also subsequently served in the Netherlands, Austria, Italy, Spain,
Belgium and France.

Patrick White, Chairman and CEO of Document Security Systems,
commented, "This is a major victory for our shareholders as it
substantiates the power of our intellectual property portfolio. We
thank the Bundespatentgericht, which resides in the home country of
the European Central Bank, for its efforts in this complex case, and
we also appreciate the work of our attorneys, McDermott Will & Emery
and Becker - Kurig - Straus. Our Patent has been deemed valid and we
will be able to proceed with the infringement phase of our lawsuit
against the ECB, despite decisions to the contrary regarding validity
of the Patent in other national courts."

Mr. White added, "With the confirmation by the German Federal
Patent Court of our Patent's validity, we hope to work with all
European Union nations and their security printers to identify
opportunities for partnerships that will ensure optimum security for
the protection of their negotiable instruments, including with our
newer and more effective technologies."

This ruling also will enable DSS to pursue infringement claims of
the Patent against security printers and software developers of the
various bank notes printed not only in Germany, but also those notes
printed in other European countries that are used in Germany.

Mr. White concluded, "We are pleased with this win, however, it is
important to note that we have greatly improved upon the technology
covered by this Patent since its issuance in 1991. Our suite of
technologically more sophisticated products can significantly upgrade
protection against modern counterfeiters. We will continue to drive
our research and development efforts to provide customized solutions
for companies and organizations around the world."

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 nine patents and 19 patents-pending covering
over 30 technologies and products 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:
www.documentsecurity.com and www.plasticprintingprofessionals.com.

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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
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implement all plans, for whatever reason. It is not possible to
foresee or identify all such factors. Any forward-looking statements
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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
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forward-looking statement included herein, or disclose any facts,
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forward-looking statement.