NYSEMKT:DSS

CorporateOverview September2017

NYSEMKT:DSS

Forward-LookingStatements

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Forward-looking statements that may be contained in this presentation, including, without limitation, statementsrelated to the Company’s plans, strategies, objectives, expectations, potential value, intentions and adequacy ofresources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act andcontain words such as “believes,” “anticipates,” “expects,” “plans,” “intends” and similar words and phrases.

These forward-looking statements are subject to risks and uncertainties that could cause actual results to differmaterially from the results projected in any forward-looking statement. In addition to the factors specifically notedin the forward-looking statements, other important factors, risks and uncertainties that could result in thosedifferences include, but are not limited to, those disclosed in the “Risk Factors” section of the Company’s AnnualReport on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission onMarch 24, 2017, and on Form 10-Q for the six months ended June 30, 2017 filed with the Securities and ExchangeCommission on August 14, 2017. Forward-looking statements that may be contained in this presentation arebeing made as of the date of its release, and the Company assumes no obligation to update the forward-lookingstatements, or to update the reasons why actual results could differ from those projected in the forward-lookingstatements.

NYSEMKT:DSS

KeyStats(NYSEMKT:DSS)

StockPrice(9/15/17) $0.79

52WeekLow-High $0.42-$1.64

Avg.DailyVol.(3mo.) 26,309

SharesOutstanding 14.37M

MarketCap $11.35M

DateFounded 1984

EmployeeCount 103

TotalRevenue(YE2016) $19.2M

Adj.EBITDA(YE2016) $1,061,000

EPS(2016) $(0.07)

P/S(2016) 0.82x

Cash(December31,2016) $5.9M

TotalAssets (Dec31,2016) $18.5M

TotalDebt(Dec31,2016) $6.5M

Datasources:Yahoo!Finance,S&PCapitalIQ,companyestimatesFiguresinUSDunlessotherwisenoted;

Revenue

15.5 16.5 15.717.3

2.01.8

1.8

1.9$17.5$18.3

$17.5$19.2

2013 2014 2015 2016

$millions

TechSales&LicensingRevenuePrintedProductRevenue

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NYSEMKT:DSS

OurExpertise

n Wehave3primaryareasoffocus:

n DigitalSolutions

n LicensingandIPMonetization

n PrintedProduction

n Ourcoretechnologieshelppreventdocumentsfrombeingcopiedorscanned.

n Ourtechnologieslieattheheartofthebrandprotectionfield- whichaddressesthe$1trillionglobalbrandandproductcounterfeitingproblem.

n WecontinuouslyinvestinR&DtoremainleadersinourmarketandhaveabroadIPportfolio.

n WeseeksignificantreturnsfromIPmonetizationinvestments

SecurityMark

Application Database

Copy Scan

Original

NYSEMKT:DSS

CounterfeitingisaGlobalEpidemic

• 10%ofGlobalGNPiscounterfeitgoods1

• $1trillionlosses globally($250BinU.S.)2

• $142Banti-counterfeitpackagingmarket3

1)U.S.ChamberofCommerce2)GCCCP– UnitedNationsWorldIPOrganization3)AlliedMarketResearch,March20144)ICENewsroom5)eBay,LVMHreachsettlementoverfakegoods;CBSnews,7/17/2014

• LeadinguptoSuperBowlXLIXagentsseizedmorethan326,147itemsofphonysportsmemorabiliaalongwithothercounterfeititemsworthmorethan$19.5million4

• In2014,LVMHsettledlitigationwitheBay,inwhichitwasdisclosedthat90percentofthedesignergoodssoldoneBaywerefakes,andeBayhadremovedmorethantwomillionsellerswhohadviolatedthetrademarksofrightsholders5

• $107.26 billion to $206.57 billion – the projectedgrowth rate of the Anti-Counterfeiting Market(coding & printing, RFID, hologram security labels,packaging design) from 2016 to 2021

NYSEMKT:DSS

Scanning/CopyingDeterrents

DSSCoreopticaldeterrenttechnologieshelpdeterthemostprevalentsourceofcounterfeiting- desktopscanningandcolorcopyingbyadigitalscanner.

AccordingtotheU.S.SecretService2010AnnualReport:

“Thewidespreaduseofpersonalcomputersandadvancementsindigitalprintingtechnologyhaveprovidedmoreindividualstheopportunitytomanufactureapassablecounterfeitnotewithrelativeease.Approximately63percentofthecounterfeitcurrencypasseddomesticallyinFY2010wasproducedusingdigitalprintingmeans, comparedwithlessthanonepercentinFY1995.” 1995

63%

1%

2010

NYSEMKT:DSS

OurRevenueChannels

PrintedProductsDigitalSolutions IPLicensing&Monetization

Developapplicationsforauthentication&security

• Next–generationbrandprotectionsolution

• Integratesprintsecurity,datasecurity,andGPStrackingtechnologies

• SAASlicensingmodel

Manufacturesecureprintedproducts

• Delivercustomsecurityprinting,packagingandIDcardproductstoend-usercustomers

• Supportslicensingbusiness

Develop,acquire&licensetechnology

• Expandmarketreachoftechnologies

• Createspartnerstoenhancecapabilitiesforcustomers

• Enternewmarkets

NYSEMKT:DSS

DSSDigitalSolutions

8Formoreinformation: www.authentiguard.com

❸IPLicensingandMonetization❷ PrintedProducts

❶ DigitalSolutions

n AuthentiGuard®:Authenticatespackagingandprintedmaterialthroughamobileapplication

n Targetmarket:BrandProtectionforconsumerproducts,industrialcomponents&pharmaceuticals

n AuthentiSite:Verifiesauthenticityofwebsitesn Targetmarkets:Onlineretail&wholesalers

The PortalThe Mark The App

The DatabaseThe Mark The App

NYSEMKT:DSS

DSSDigitalSolutions

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n ProductdevelopmentsinceOctober2012

n $2millionR&Dbudget(patentprotected)

n Targetstheglobalbrandprotectionmarketestimatedtohit$3.8billionin2018.1

❸IPLicensingandMonetization❷ PrintedProducts

❶ DigitalSolutions

• Fillsasignificantvoidinthecurrentbrandprotectionmarket- acoverttrackingsystemthatusesexistingproductionmeansandauthenticationtoolsandcannotbecopiedorscanned.

• Customertargetsincludelargemulti-nationalsseekingbrandprotectionsolution.• Wearenowoftendealingwithnew“brand

protection”departments.• Longersalescyclestouchingmarketing,

productionandsecuritygroups.• Salescontractsexpectedtobe$300,000-$3

millionpercustomer.

• Profitabilitywithfirstenterprisecustomer,scalesquickly.

AuthentiGuard™

TheMark

TheApplication

TheDatabase

Formoreinformation: www.authentiguard.com1- Smithers Pira TheFutureofAnticounterfeiting,BrandProtectionandSecurityPackagingVII

NYSEMKT:DSS

PrintedProducts

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n Secureandcommercialpackagingsolutions

n Intelligentcardsthatauthenticateidentity&resistcounterfeiting

n PrintingservicesthatleverageDSS’fraudprotectiontechnology

❸IPLicensingandMonetization

❷ PrintedProducts

❶ DigitalSolutions

n Corecompetency:Deliveryofpatented“opticaldeterrence”securitytechnologiesacrossmultipleproducts.

n SupportscontinuousR&Deffortstostayaheadofnewcounterfeitingrisks.

n Profitabledivisionwithstrongcustomerbase.

Products

NYSEMKT:DSS

PrintedProducts

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n Packaging:

n Multi-yearagreementswithlargestcustomersprovidesstable,predictablerevenue

n PlatformforintegrationwithAuthentiGuard™roll-out

n IDCards:

n RFIDfocusofferssignificantupselltocorecustomergroup

n Strongpresenceineventbadges(SuperBowl,WorldSeries,etc.)

n Printing:

n SecurityprintingrelationshipswithFortune500consumerbrands.

❸IPLicensingandMonetization

❷ PrintedProducts

❶ DigitalSolutions

Note: Figuresunaudited

68%

25%

7%

2016RevenueMix

Packaging IDCards Printing

NYSEMKT:DSS

IPLicensingandMonetization

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n Followthe“technologyroadmap”ofourbusinesslinestocreatenewsolutionsandidentifyIPwithsignificantcommercial&licensingpotential

n OpportunisticIPacquisition- highlyselective

n LicenseIP/patentstocommercialpartners

n EnforceIPwherecommercializationisblockedbycompetitors

n Utilizeco-investorandcontingentlegaltosupportIPenforcementefforts

❶DigitalSolutions

n Long-standinglicenseswithtopsecurityprintersintheU.S.

n RRDonnelly

n BanknoteCorp.ofAmerica

n OurlicenseesuseDSStechnologyforwide–rangeofsecuredocuments:

n Checks,governmentdocuments,coupons,vitalrecords,etc.

n Licensingprovideshigh-marginreturnsandexpandedproductionnetwork

n $800,000annualrunrate

IPMonetization❷PrintedProducts

❸ IPLicensingandMonetization

Licensing

NYSEMKT:DSS

ActiveIPLitigation

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Technology Status Current Defendants

Useofwirelessperipheraldevicesin“PersonalData

Network”

§ CasependingintheNorthernDistrictofCalifornia

§ IPRdecisioninfavorofdefendant§ DSSevaluatingIPRappeal§ CasestayedpendingIPRoutcome

SemiconductorFabrication

§ Casespendinginthe EasternDistrictofTexas§ IPRspending§ CasesstayedpendingIPRoutcomes

❷ PrintedProducts

❶ DigitalSolutions ❸ IPLicensingandMonetization

NYSEMKT:DSS

SG&AExpenses(ExcludingstockbasedcompensationandIP

AmortizationandImpairments)

$9.9 $9.5

$8.0$7.0

$3.0

2013 2014 2015 2016 20176M

Revenue

IncomeStatementHighlights

$15.5 $16.5 $15.7$17.3

$7.7

$2.0$1.8

$1.8$1.9

$0.8

$17.5 $18.3 $17.5$19.2

$8.5

2013 2014 2015 2016 20176M

$millions

TechSales&LicensingRevenuePrintedProductRevenue $millions

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NYSEMKT:DSS

($2.0)

($2.8)

($1.3)

$1.1

$0.2 $0.4$0.7

$0.4

2013 2014 2015 2016 2Q_17 1Q_17 4Q_16 3Q_16

IncomeStatementHighlights

$millions

15

AdjustedEBITDA(earningsbeforeinterest,taxes,depreciationandamortization,

stockbasedcompensationandothernon-recurringitems)

1- Figuresunaudited

1

StrongAdjustedEBITDAtrendsasCompanyachievespositiveAdjustedEBITDAfor2016/17

NYSEMKT:DSS

BalanceSheetSummary

SelectBalanceSheetItems

$Millions December31,2016

Cash&restrictedcash $5.9

Networkingcapital $1.8

Totalassets $18.5

Totaldebt $6.5

Totalliabilities $15.2

Totalstockholders’equity $3.3

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NYSEMKT:DSS

ValuePropositions

n Differentiatedbusinessmodel— focusedonhighgrowthcommercializationandlicensingopportunities

n Valuablenear-termgrowthopportunitieswithAuthentiGuard™ &othertechnologyproducts

n Significantupsidepotential withIPlicensing

n Catalystsincludepotentialproductsuccessesandlitigationmilestones

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NYSEMKT:DSS

ContactUs

DSSInvestorRelationsTel(585)232-5440IR@dsssecure.com

DocumentSecuritySystems,Inc.200CanalViewBlvd,Suite300Rochester,NY14623www.dsssecure.com

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