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

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 ended December 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 at www.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.

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