Document Security Systems, Inc. Uses NCR Technology

Document Security Systems, Inc. (Amex: DMC) announced today that they have successfully tested checks containing Document Security System's (DSSI) new patent-pending
AuthentiGuard(TM) Survivor 21(R) technology using NCR Corporation's high-speed
check scanners, which are widely utilized by the banking industry.

Under the new "Check 21" regulations that took effect in October 2004,
banks are no longer required to physically sort and distribute checks back to
the "drawn on" or "originating" banks. Instead, electronic scans of the check
can replace this process. Banks are at risk to potential check fraud because
they will no longer have the actual original check returned to them by the
banking institution at which the check was presented for payment. Therefore,
a method is required to determine the authenticity of a scanned check. One
such validation method developed by DSSI is to have a hidden security feature
appear on the scanned image of the check, thereby confirming that the check
that has been scanned is authentic. This test, conducted by NCR Corporation,
confirms that the banking industry now has an economical solution to the
problem of validating the authenticity of checks as they enter the electronic
check era.

Denis Bergeron, director of Product Management & Marketing for NCR's
Payment Solutions group, stated, "Document Security Systems' Survivor 21(R)
image was successfully tested on NCR's iTRAN check processing transports by
our Research and Development team. The hidden icon image developed by
Document Security survived the high-speed scans and remained prevalently shown
on the electronic images. Other components of the image that Document
Security had calibrated to disappear, such as the hidden anti-copy word
"Void," did not survive the scans as planned. This is good news for the
industry. It addresses an important and immediate concern banks have
expressed as they move towards check truncation and image exchange."

Patrick White, Chief Executive Officer and President of Document Security
Systems, Inc. stated that, "We are extremely gratified that NCR Corporation,
one of the leading providers of high-speed check scanning equipment to the
banking industry, has validated our Survivor 21(R) technology. We believe
that this successful test demonstrates that Document Security Systems has
created a solution to the potential problem of increased check fraud under the
new "Check 21" regulations. According to the American Bankers Association's
most recent survey, attempted check fraud at U.S. banks totalled more than
$4.3 billion in 2001, with actual bank losses totalling $698 million, and most
banking industry observers believe these numbers may rise as a result of
"Check 21." By utilizing our technology, banks can reduce the possibility of
check fraud without purchasing expensive new hardware or software to assist in
the verification of the scanned electronic checks. To utilize this new
technology, all that a bank would need to do is to direct its check printer to
replace their current check paper stock containing outdated security
background pantograph with new checks that contain our Authentiguard(TM)
Survivor 21(R) printed pantograph."


Document Security Systems also reported that a number of large check
printers are in the process of test printing its new patented-pending
technology.

For Licensing and other information contact:
Contact: Earle Ingalls
Company: Document Security Systems, Inc.
Voice: 877-276-0293
Fax: 585-325-2977
Email: Earle.Ingalls@documentsecurity.com

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,
our ability to market and sell our technology, 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.
This press release contains forward-looking statements within the meaning of
section 27A of the Securities Act of 1933 and section 21E of the Securities
Act of 1934. Investors are cautioned that there are additional risks
associated with investing in our Company, and are referred to the Risk Factors
contained in our Exchange Act filings with the SEC, which risks may change
from time to time. 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.

For Investor Relations contact:
Contact: Cherrie Mahon
Company: Document Security Systems, Inc.
Title: Shareholder Relations
Voice: 877-276-0293
Fax: 585-325-2977
Email: Cherrie.Mahon@documentsecurity.com

Websites: http://www.documentsecurity.com
http://www.safetypaper.com
http://www.legalstore.com
http://www.patrickprinting.com

or
Sabre Holdings
Filo Vallano, 682-605-1104
filomena.vallano@sabre-holdings.com

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