Document Security Systems Announces Expanded Agreement with The Ergonomic Group

DMC and The Ergonomic Group to Share the Gross Margin of Any Sales
of Its Digital Products as Part of New Two-Year Agreement
ROCHESTER, N.Y.--(Business Wire)--
Document Security Systems, Inc. (AMEX: DMC) ("DMC"), a leader in
proven, patented protection against counterfeiting and unauthorized
copying, scanning and photo imaging, announced today that it has
signed a new two-year agreement with The Ergonomic Group ("EGI"),
replacing the December 2006 agreement between EGI and DMC for the
distribution of DMC's technology through EGI's sales channels in
exchange for royalty sharing. This new agreement is a reciprocal
agreement, with both EGI and DMC agreeing to equally divide with each
other the gross margin on digital sales of DMC's technology completed
by either party.

Under terms of the agreement, DMC will receive 50% of the gross
margin of any sales of its digital products sold by EGI, which has an
established sales channel. EGI will, in turn, receive 50% of the gross
margin on any sales of DMC's digital solutions that are made by DMC.
EGI has developed web-based tools to deliver DMC's anti-scanning and
anti-counterfeiting technologies in a digital format. Together, the
two companies plan to expand this offering by adding more products to
the digital product suite and increase their cooperation related to
the Internet and software-based utilization of DMC's technologies.

Patrick White, CEO of DMC, commented, "It is increasingly clear
that our customers are looking for software-based digital solutions
that integrate our anti-scanning and anti-counterfeiting technologies
into their existing systems and processes. Together with The Ergonomic
Group, we completed two initial digital projects in 2007 - one an
Internet solution for generating a type of visa for the Panama Canal
and another for a large international bank for its offices throughout
Mexico. Both of our companies are engaged in early introductory sales
presentations with Fortune 500 companies. Based on the initial 2007
prototype success and the feedback from other potential customers, it
is in the best interests of Document Security Systems to expand our
relationship with The Ergonomic Group to support the required
technical aspects of the technology with additional resources and
investment. In addition, our new relationship with The Ergonomic Group
also provides a major sales channel for this enterprise solution with
their established clients."

EGI is one of the largest hardware, software and service providers
in the New York City "tri-state" area with 2007 revenue of $268
million and a client and partner base of major corporations which
utilize their custom enterprise solutions. Its clients include
international financial services firms, large healthcare
organizations, and insurance companies. Current EGI technology
partners include Cisco Systems, Computer Associates, Hewlett Packard,
Sun Microsystems (2007 Sun "Partner of the Year"), Hitachi Data
Systems, IBM, Oracle, and Symantec, among others.

Mr. Robert T. Girards, Executive Vice President & COO of EGI,
added, "Ever increasingly, enterprises are asking for digital
solutions which are easy to integrate into existing systems, that
address emerging business issues, from compliance, to security of
financial instruments. In addition to using Document Security Systems'
paper or plastic-based solutions, these digital tools create a truly
integrated and customized solution ideally suited for today's vigilant
corporate environment. The initial response to our first and
second-generation offerings has been exciting, demonstrating a demand
and we are in active conversations with a wide-range of interested
clients. These are significant projects involving a fair amount of
customization, but this interest reinforced our desire to continue to
partner with Document Security Systems and warranted an expansion of
our initial agreement. We look forward to expanding this relationship
more in the future as we begin to translate client interest into
meaningful revenue."

The agreement provides for automatic two-year extensions, beyond
the initial two-year term. As part of the original agreement, signed
in late 2006, DMC received a $1 million licensing fee, which is not
affected by the new Agreement.

"The Ergonomic Group is a valued partner and we view Mr. Girards
as a technology pioneer," Mr. White added. "He recognizes the value of
our technology and has created and is implementing a vision for
distributing our technology digitally. The expansion of our
relationship demonstrates the confidence both Document Security
Systems and The Ergonomic Group have in the digital application of our
technology, as well as the expansion of a partnership which we hope
will continue to grow into the future."

About The Ergonomic Group

The Ergonomic Group (EGI) is a technology solutions provider with
demonstrated expertise in a wide range of critical IT infrastructure
solution areas, including enterprise security, mission critical and
high availability solutions. EGI's partnership with DSS marks an
expansion of EGI's Security Solutions Practice. As co-developer of
AuthentiGuard OnDemand, lead integration partner, and exclusive
distribution partner for the solution, EGI works hand in hand with DSS
to leverage the unique expertise of both companies to bring to market
a breakthrough Anti-Counterfeiting Security Printing Solution that
closes the gaps in the protection and authentication of vital
documents across a wide range of industries. More information about
The Ergonomic Group can be found at www.ergogroup.com.

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.

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, 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 which the Company 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.

Document Security Systems, Inc.
Nicole Acton, 877-276-0293
nicole.acton@documentsecurity.com
or
Investors:
Hayden Communications, Inc.
Jeffrey Stanlis, 602-476-1821
jeff@haydenir.com

Copyright Business Wire 2008