Netherlands Court Rules American-Based Document Security Systems´ Anti-Counterfeiting Patent as Valid

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 District
Court of the Hague in the Netherlands, ruled that the ECB failed in
its bid to invalidate the Company´s European Patent No 0455750B1 (the
"Patent") in the Netherlands. The judgment is the result of a hearing
held on December 12, 2007.

Patrick White, CEO of Document Security Systems, commented, "This
is a major victory for Document Security Systems and its shareholders.
This ruling, as well as our victory in Germany, substantiates the
value of our intellectual property portfolio and clears the path for
infringement proceedings to begin in the Netherlands. We fully believe
that the ECB will appeal this decision, but we do not expect that this
likely appeal will impact our ability to move forward with
infringement proceedings on our timeline. Here, our focus will be on
substantial monetary damages for the unauthorized use of our patented
technology by not only the ECB, but printers and third parties as
well, including those who print bank notes in other European countries
that are used in the Netherlands. We will work closely with our legal
counsel, McDermott, Will & Emery amongst others, to establish an
infringement strategy to protect the rights of our shareholders."

Mr. White concluded, "Our goal is a going-forward settlement on
these matters as through a deep corporate commitment to internal
research and development efforts, we have significantly improved the
technology covered by this Patent since its issuance in 1991. Today,
we offer much more technologically sophisticated methodologies and we
can substantially upgrade the protection on the Euro against modern
counterfeiters. We hope to bring this technology and expertise to bear
on behalf of the ECB in all of its product areas as well as the
redesign of the Euro particularly as we pursue current
commercialization strategies in the Netherlands and throughout
Europe."

On August 1, 2005, DSS filed a patent infringement suit in the
European Court of First Instance ("CFI") against the European Central
Bank ("ECB") alleging that the Euro banknotes produced by the ECB
infringe DSS´ the Patent. Subsequently, DSS received notice that the
ECB had filed claims to invalidate the Patent with patent courts in
France, Germany, the United Kingdom, the Netherlands, Austria, Italy,
Spain, Luxembourg and Belgium. To date, the Patent has been validated
in the Netherlands and Germany and the patent has been invalidated in
the United Kingdom and France. The CFI ruled on September 5, 2007 that
it was not the correct venue for infringement proceedings, which has
opened the door for country-by-country infringement litigation.

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: www.documentsecurity.com and
www.plasticprintingprofessionals.com.

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