Lexington Technology Group, Inc., an intellectual property management firm that has announced plans to merge with Document Security Systems, Inc. (NYSE MKT: DSS) pursuant to a pending merger transaction anticipated to close in the second quarter of 2013, announced today that it has made a strategic investment in VirtualAgility, Inc., a developer of user-friendly programming platforms that facilitate the creation of sophisticated business applications without programming or coding. “LTG’s investment in VirtualAgility reflects our commitment to supporting operating businesses that hold strong IP rights,” said Jeff Ronaldi, CEO of Lexington Technology Group. “The stake complements our acquisition of Bascom Research, LLC in 2012, and it will be relevant to DSS, particularly to its AuthentiGuard® product line, which will benefit from the VirtualAgility’ collaborative development tools.” The investment provides LTG with a minority stake in VirtualAgility, and the potential opportunity to expand its ownership in VirtualAgility over time, under DSS’s umbrella, once the proposed merger is completed. The VirtualAgility investment provides LTG with the opportunity to participate in VirtualAgility’s future growth and performance, including its pending patent litigation recently filed in the U.S. Federal District Court, Eastern District of Texas, VirtualAgility v. Salesforce.com et al., Civil Action No.2 , 2:13-CV-00011. VirtualAgility’s leading edge inventions are protected by five issued U.S. patents and multiple trade secrets. The company also has several additional patents pending on innovative systems and methodologies. “VirtualAgility is delighted to be able to avail itself of a value-added investor like Lexington Technology Group that also can provide significant operating experience,” said Stuart Rudolph, President and CEO of VirtualAgility. “We are looking forward to the prospect of helping DSS expand its leadership in authentication and anti-counterfeit solutions as well as continue to grow VirtualAgility.” About Lexington Technology Group Lexington Technology Group, Inc. is an intellectual property management firm that invests business experience, legal expertise and capital to monetize pioneering inventions. LTG’s goal is to identify and capitalize on opportunities for return, while rewarding highly qualified innovators. The firm typically engages with companies that have identified important innovations but that may lack the experience, relationships or capital to succeed on their own, and have not been fairly rewarded in the marketplace. LTG’s initiatives contribute to an intellectual property market that enables innovators to benefit from their discoveries and investors to profit from prudent risk. LTG’s management team is comprised of experienced patent managers and strategists that have collectively generated over $1 billion licenses, settlements and damages awards to date. www.lex-tg.comAbout VirtualAgility VirtualAgility, Inc. provides a user-configurable platform that allows persons who are not specialists in information technology (IT) to create sophisticated, integrated applications easily and efficiently. VirtualAgility’s intuitive and cost-efficient development and deployment system for processing information and supporting management of collaborative activities is protected under patents and trade secrets. www.VirtualAgility.comAbout DSS Document Security Systems, Inc. (NYSE MKT: DSS) develops and provides patented anti-counterfeiting, anti-fraud, authentication and brand protection technologies that are employed by governments, leading corporations and financial institutions. DSS works closely with clients, including Fortune 500 companies, to design proprietary technology solutions that deter unauthorized scanning and copying, and facilitate authentication of printed documents and packaging. DSS product solutions are protected under United States and foreign patent law and under trade secrets. www.DSSsecure.comImportant Additional Information Will Be Filed with the SEC This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities of DSS, or Lexington or the solicitation of any vote or approval. In connection with the proposed transaction, DSS has filed with the SEC a Registration Statement on Form S-4 containing a preliminary proxy statement/prospectus. The preliminary proxy statement/prospectus contains important information about DSS, Merger Sub, Lexington, the transaction contemplated by the Merger Agreement and related matters. DSS will mail or otherwise deliver the proxy statement/prospectus to its stockholders once it is final. Prospective investors and security holders of DSS and Lexington are urged to read carefully the proxy statement/prospectus relating to the Merger (including any amendments or supplements thereto) in its entirety when it is available, because it will contain important information about the proposed transaction.