New York, July 18, 2001 – American Bank Note Holographics, Inc., (“ABNH”), (OTC Bulletin Board: ABHH), a world leader in the origination, production and marketing of holograms for security, authentication and design, today commented on the announcement of its settlement with the Securities and Exchange Commission as well as the indictment of its former senior officers by the U.S. Attorney's Office for the Southern District of New York. “Today’s announcements by the SEC and US Attorney reiterate the disclosure we made in our most recent Form 10-K, relating to the conclusion of the SEC’s investigation of ABNH and its acceptance of our offer of settlement,” said Kenneth H. Traub, ABNH’s President and CEO. “Today’s announcement further confirms that ABNH is not a target of the U.S. Attorney and that the prosecution of certain former senior officers of the company in no way reflects on ABNH’s current employees, officers, directors and activities.” "ABNH has succeeded in resolving the problems created by the former management, and we have reestablished the Company’s strong reputation in our industry," continued Mr. Traub. "ABNH now has a completely new management team, the SEC investigation and class action litigation have all been settled, we are now well-capitalized, and we have recently developed and introduced a host of new products to address the growing demand for holographic security in our target markets." About American Bank Note Holographics, Inc. American Bank Note Holographics is a world leader in the origination, production, and marketing of holograms. The Company’s products are used primarily for security applications such as counterfeiting protection and authentication of transaction cards, identification cards, documents of value, consumer and industrial products as well as for packaging and design applications. ABNH is headquartered in Elmsford, NY. For more information, visit www.abnh.com