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Document Security Systems Signs Licensing Agreement with NPC

Press release from the issuing company

November 21, 2007 -- Document Security Systems, Inc., a leader in proven, patented optical deterrent technologies and products that protect against counterfeiting and brand fraud due to unauthorized copying, scanning and photo imaging, today announced that it has entered an agreement to partner with one of the nation's largest government print and mail suppliers, NPC, Inc. (NPC), to deliver innovative anti-counterfeiting and authentication solutions.
As part of the agreement, NPC will partner with Document Security Systems to deliver the AuthentiGuard technology suite to new customers as well as through established sales channels in the government, healthcare, and academic markets. In the agreement, DMC has granted NPC a non-exclusive license in the United States for the AuthentiGuard technology suite for which NPC has agreed to pay DMC a minimum annual royalty fee plus a percentage royalty per project. NPC, a privately-owned company, expects its initial sales focus to include its current government and commercial customer base.
The market for anti-counterfeiting and authentification solutions is rapidly expanding as potential customers increasingly recognize the ongoing cost of forged documents, security breaches and brand theft.
-- In the U.S. government market, approximately $500 billion is spent on security programs and initiatives (according to the Department of Treasury) and this amount increases annually.
-- Potential healthcare customers include pharmaceutical companies, which recognize annual losses of up to $32 billion globally due to counterfeit drugs. Healthcare fraud, committed by individuals, providers and pharmacies, costs Americans an estimated $54 billion dollars annually, according to the Blue Cross/Blue Shield Federal Employee Program.
-- Academic institutions suffer losses of revenue and brand value related to "diploma mills" and counterfeit transcripts which impact the reputation of institutions nationwide. In addition, educators and credentialling associations are continually challenged with exam copying and in maintaining authenticity in books and related materials.
As one of the country's largest government printers, NPC provides customized print, mail and digital document solutions for a variety of industries. In business for more than fifty years, NPC has worked closely with federal and state governments for more than forty of those years, delivering print, mail, order fulfillment and electronic document services. In 2006, NPC was named the top vendor for the Government Printing Office (GPO) for the second consecutive year. Located in Claysburg, Pennsylvania, with satellite offices in Roaring Spring, Pennsylvania and in Reston, Virginia, NPC's location is easily accessible to many east-coast metropolitan areas including New York, Philadelphia, Baltimore and the District of Columbia. Already committed to the production of secured printed products and to the handling of confidential data internally, adding DMC's technologies further emphasize NPC's focus on protecting critical documents and information.
Mr. Peter Ettinger, President of DMC, commented, "This is a significant agreement for us as it provides Document Security Systems with a new and commanding presence in the government market, which is focused like never before on issues of anti-counterfeiting and security. With this partnership, we have direct access to agencies and integrators working towards use of our products in projects involving security for items such as passport and visas, vital records, and secure identifications."
He added, "Recently, the Centers for Medicare and Medicaid Services (CMS) mandated the compliance of specific security requirements on prescription pads, which will go into effect next year. Since 9/11, homeland security and the protection of U.S. residents have never been more critical, and with over 300 diploma mills online alone, it is imperative that educational institutions preserve their reputations and safeguard their students. Together with NPC, we will have a more robust sales channel that will also address the government, healthcare and academic fields and we believe this relationship will help us to positively impact each of these areas."
Mr. Leroy D. Corbin, Vice President, Business Development of NPC, noted, "This partnership represents an opportunity for us to meet the growing demand for print security by working with the global leader of the industry. We're excited at becoming DMC's implementation arm as well as offering the Company's technologies to our government and commercial customers as well as opening prospective new markets. As the public is continually challenged by fraud and misuse of information, we believe that this is the right step toward delivering both customer and market solutions."
DMC's AuthentiGuard technologies represent one of the leading anti-counterfeiting print security and authentication technologies on the market today and are the most effective optical deterrent security technologies that work with current models of digital copiers, imaging systems and scanners.