NYSE MKT: DSS

Company Presentation November 2015

NYSE MKT: DSS

Important Cautions Regarding Forward-Looking Statements

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Forward-looking statements that may be contained in this presentation, including, without limitation, statements related to the Company’s plans, strategies, objectives, expectations, potential value, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act and contain 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 differ materially from the results projected in any forward-looking statement. In addition to the factors specifically noted in the forward-looking statements, other important factors, risks and uncertainties that could result in those differences include, but are not limited to, those disclosed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission on March 30, 2015 and updated in the Company’s Form 10-Q filings for the first and second quarters of 2015.

Forward-looking statements that may be contained in this presentation are being made as of the date of its release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements.

NYSE MKT: DSS

Key Stats (NYSE MKT: DSS)

Stock Price (11/13/15) $0.23

52 Week Low-High $0.15-$0.74

Avg. Daily Vol. (3 mo.) 143,802

Shares Outstanding 51.8M

Float (est.) 49.4M

Insider Holdings 5%

Institutional Holdings 4%

Market Cap $11.9M

Enterprise Value $19.5M

Date Founded 1984

Employee Count 103

Total Revenue (ttm) $16.9M

Adj. EBITDA (ttm) $(2.1M)

EPS (ttm) $(0.74)

P/S (ttm) 0.7x

Cash (Sep30, 2015) $1.2M

Total Assets (Sep30, 2015) $26.4M

Total Debt (Sep30, 2015) $8.0M

Data sources: Yahoo! Finance, S&P Capital IQ, company estimates Figures in USD unless otherwise noted; (ttm) = trailing twelve months as of September. 30. 2015 1. Figures unaudited

Revenue

15.3 15.5 16.5

15.1

1.8 2.0 1.8

1.8

$17.1 $17.5 $18.3

$16.9

2012 2013 2014 TTM

$ millions

Tech Sales & Licensing Revenue

Printed Product Revenue

1

3

NYSE MKT: DSS

What We Do

We have 3 primary areas of focus:

Digital Solutions

Printed Products

Licensing and IP Monetization

Our core technologies help prevent documents from being copied or scanned.

Our technologies lie at the heart of the brand protection field- which addresses the $1 trillion global brand and product counterfeiting problem.

We continuously invest in R&D to remain leaders in our market and have a broad IP portfolio.

We seek significant returns from IP monetization investments

Security Mark

Application Database

Copy Scan

Original

NYSE MKT: DSS

Counterfeiting is a Global Epidemic

• 10% of Global GNP is counterfeit goods

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• $1 trillion losses globally ($250B in U.S.)2

• $142B anti-counterfeit packaging market

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1) U.S. Chamber of Commerce 2) GCCCP – United Nations World IP Organization 3) Allied Market Research, March 2014 4) ICE Newsroom 5) eBay, LVMH reach settlement over fake goods; CBS news, 7/17/2014

• Leading up to Super Bowl XLIX agents seized more than 326,147 items of phony sports memorabilia along with other counterfeit items worth more than $19.5 million4

• In 2014, LVMH settled litigation with eBay, in which it was disclosed that 90 percent of the designer goods sold on eBay were fakes, and eBay had removed more than two million sellers who had violated the trademarks of rights holders5

NYSE MKT: DSS

Counterfeiting is a Global Epidemic

DSS Core optical deterrent technologies help deter the most prevalent source of counterfeiting -desktop scanning and color copying by a digital scanner.

According to the U.S. Secret Service 2010 Annual Report: “The widespread use of personal computers and advancements in digital printing technology have provided more individuals the opportunity to manufacture a passable counterfeit note with relative ease. Approximately 63 percent of the counterfeit currency passed domestically in FY 2010 was produced using digital printing means, compared with less than one percent in FY 1995.” 1995

63%

1%

2010

NYSE MKT: DSS

Our Revenue Lines

Printed Products Digital Solutions IP Licensing & Monetization

Develop applications for authentication & security

• Next–generation brand protection solution

• Integrates print security, data security, and GPS tracking technologies

• SAAS licensing model

Manufacture secure printed products

• Deliver custom security printing, packaging and ID card products to end-user customers

• Supports licensing business

Develop, acquire & license technology

• Expand market reach of technologies

• Creates partners to enhance capabilities for customers

• Enter new markets

NYSE MKT: DSS

DSS Digital Solutions

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For more information: www.authentiguard.com

❸ IP Licensing and Monetization ❷ Printed Products ❶ Digital Solutions

AuthentiGuard®: Authenticates packaging and printed material through a mobile application

Target market: Brand Protection for consumer products, industrial components & pharmaceuticals

AuthentiSite: Verifies authenticity of websites

Target markets: Online retail & wholesalers

The Portal The Mark The App

The Database The Mark The App

NYSE MKT: DSS

DSS Digital Solutions

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Product development since October 2012

$2 million R&D budget (patent protected)

Targets the global brand protection market estimated to hit $3.8 billion in 2018.1

❸ IP Licensing and Monetization ❷ Printed Products ❶ Digital Solutions

• Fills a significant void in the current brand protection market- a covert tracking system that uses existing production means and authentication tools and cannot be copied or scanned.

• Customer targets include large multi-

nationals seeking brand protection solution.

• We are now often dealing with new “brand protection” departments.

• Longer sales cycles touching marketing, production and security groups.

• Sales contracts expected to be $300,000 -$3 million per customer.

• Profitability with first enterprise customer,

scales quickly.

AuthentiGuard™

The Mark

The Application

The Database

For more information: www.authentiguard.com

1- Smithers Pira The Future of Anticounterfeiting, Brand Protection and Security Packaging VII

NYSE MKT: DSS

Printed Products

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Secure and commercial packaging solutions

Intelligent cards that authenticate identity & resist counterfeiting

Printing services that leverage DSS’ fraud protection technology

❸ IP Licensing and Monetization ❷ Printed Products ❶ Digital Solutions

Core competency: Delivery of patented “optical deterrence” security technologies across multiple products.

Supports continuous R&D efforts to stay ahead of new counterfeiting risks.

Profitable division with strong customer base.

Products

NYSE MKT: DSS

Printed Products

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Packaging:

multi-year contracts with largest customers provides stable, predictable revenue

Platform for integration with Authentiguard™ roll-out

ID Cards:

RFID focus offers significant upsell to core customer group

Strong presence in event badges (Super Bowl, World Series, etc.)

Printing:

Security printing relationships with Fortune 500 consumer brands.

❸ IP Licensing and Monetization ❷ Printed Products ❶ Digital Solutions

$11.2

$3.5

$1.8

2014 Revenue Mix $ Millions

Packaging ID Cards Printing

88%

28%

-51% -100%

0%

100%

Packaging ID Cards Printing

% Change since 2011

Note: Figures unaudited

NYSE MKT: DSS

Printed Products

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❸ IP Licensing and Monetization ❷ Printed Products ❶ Digital Solutions

52%

22%

0%

20%

40%

60%

1st half 2015 vs. 1st half 2014 2014 vs. 2013

Technology Card Trends Targeted growth in technology

card sales and security printing products offset loss of commercial printing revenue.

Approximately $1 million in press equipment installed in 2015 to enhance variable-printing capabilities.

18%

8%

0%

10%

20%

1st half 2015 vs. 1st half 2014 2014 vs. 2013

Security Printing Trends

Note: Figures unaudited

NYSE MKT: DSS

IP Licensing and Monetization

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Follow the “technology roadmap” of our business lines to create new solutions and identify IP with significant commercial & licensing potential

Opportunistic IP acquisition - highly selective (acquired <1% of IP portfolios evaluated)

License IP/patents to commercial partners

Enforce IP where commercialization is blocked by competitors

Utilize co-investor and contingent legal to support IP enforcement efforts

❶ Digital Solutions

Long-standing licenses with top security printers in the U.S.

RR Donnelly

Banknote Corp. of America

Our licensees use DSS technology for wide–range of secure documents:

Checks, government documents,

coupons, and vital records.

Licensing provides high-margin returns and expanded production network

$750,000 annual run rate

IP Monetization

❷ Printed Products ❸ IP Licensing and Monetization

Licensing

NYSE MKT: DSS

Active IP Litigation

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Technology Status Current Defendants

Use of wireless peripheral devices in

“Personal Data Network”

Case pending in the Northern District of California

IPR pending

Case stayed pending IPR

Semiconductor Fabrication

(Double Patterning)

Cases pending in the Eastern District of Texas

IPR pending

DSS appealed the Court’s Markman ruling.

Semiconductor Fabrication

Cases pending in the Eastern District of Texas

❷ Printed Products ❶ Digital Solutions ❸ IP Licensing and Monetization

NYSE MKT: DSS

Costs and Expenses (Excluding stock based compensation and IP

Amortization)

$18.3 $18.2

$20.0

$19.5

2012 2013 2014 TTM

Revenue

Income Statement Highlights

$15.3 $15.5 $16.5

$15.1

$1.8 $2.0 $1.8

$1.8

$17.1 $17.5 $18.3

$16.9

2012 2013 2014 TTM

$ millions

Tech Sales & Licensing Revenue

Printed Product Revenue

1

$ millions

15 1- Figures unaudited

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NYSE MKT: DSS

Income Statement Highlights

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Costs and Expenses (Excluding stock based compensation and IP Amortization and impairment costs)

Nine Months

Ended September

30, 2015

Nine Months

Ended September

30, 2014 % change

Costs and expenses

Cost of goods sold, exclusive of

depreciation and amortization 7,206,000$ 8,506,000$ -15%

Sales, general and administrative

compensation 3,021,000 3,613,000 -16%

Professional fees 1,534,000 1,430,000 7%

Sales and marketing 250,000 425,000 -41%

Rent and utilities 510,000 567,000 -10%

Other operating expenses 564,000 665,000 -15%

Research and development 350,000 344,000 2%

        Total costs and expenses 13,435,000$ 15,550,000$ -14%

NYSE MKT: DSS

($1.3)

($2.0)

($2.8)

($2.1) ($2.1)

($1.3)

2012 2013 2014 TTM1st 9 months

of 20141st 9 months

of 2015

Income Statement Highlights

$ millions

17

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization,

stock based compensation and other non-recurring items)

1- Figures unaudited

1

NYSE MKT: DSS

Balance Sheet Summary

$800,000 available under a revolving credit line.

IP monetization investments partially funded by co-investors $4.1 million of debt which is secured by the underlying IP assets.

Select Balance Sheet Items

$Millions September 30, 2015

Cash & restricted cash $1.5

Net working capital $0.4

Total assets $26.4

Total debt $8.0

Total liabilities $12.3

Total stockholders’ equity $14.0

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NYSE MKT: DSS

Key Takeaways

Differentiated business model — focused on high growth commercialization and licensing opportunities

Valuable near-term growth opportunities with AuthentiGuard & other technology products

Significant upside potential with IP licensing

Catalysts include potential product successes and litigation milestones

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NYSE MKT: DSS

Contact Us

DSS Investor Relations Tel (585) 325-3610 IR@dsssecure.com

Document Security Systems, Inc. 28 Main Street East, 15th Floor Rochester, NY 14614 www.dsssecure.com

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