ROCHESTER, N.Y.--May 26, 2006-- Document Security Systems, Inc., a leader in proven, patented protection against counterfeiting and unauthorized copying, scanning and photo imaging, announced today it has signed a licensing contract with R.R. Donnelley & Sons Company, the largest printer in North America. The licensing agreement renews and extends the historic agreement the Company had with RR Donnelley for its SecureScan technology. The three-year agreement is a royalty-based contract for the use of SecureScan and is the largest licensing agreement that Document Security Systems has executed to date. The agreement takes effect August 1, 2006. Mr. Patrick White, Chairman, President and Chief Executive Officer, stated, "The renewal and extension of this contract with one of the world's most premier security printing companies firmly confirms our technology as the industry standard." The agreement also provides for testing and adaptation of additional anti-counterfeiting technologies including DSS's AuthentiGuard Pantograph 4000 and AuthentiGuard Survivor 21. These technologies can be embedded in labels, forms and other printed products developed by RR Donnelley for customers. "We continue to execute on our strategy to drive revenue growth both by increasing in-house manufacturing and by selectively licensing our technologies to large and established companies. Our renewed agreement with the largest printer in North America represents a significant milestone for our Company, and a giant step towards profitability," Mr. White concluded.