ROCHESTER, N.Y., May 12, 2011 /PRNewswire/ -- Document Security
Systems, Inc. ("DSS") (AMEX: DMC), announced today that it has
acquired a private cloud computing company called ExtraDev, Inc.
("ExtraDev) in order to expand the company's presence in the
multi-billion dollar cloud computing market. The acquisition
of ExtraDev gives DSS the necessary information systems personnel
and cloud expertise to deliver their patented AuthentiGuard® DX
information security technology as a Software-as-a-Service offering
(SaaS).
AuthentiGuard® DX is a server-side software product accessed by
licensed users to secure any user or programmatically selected
alphanumeric digitally stored data such as a Word document, Excel
spreadsheet, Outlook email or Power Point. The secure data is
then concealed allowing the data to be saved, printed or
transmitted with additional security measures applied.
Unauthorized individuals that may view the data will obtain
redacted information. Authorized users have the option of reversing
the secure portion of documents with a password protected viewing
system or view the data in printed form with a handheld plastic
analog decoder. Protected data is also safeguarded when
printed since the hidden information deletes itself if scanned or
copied by a counterfeiter.
DSS has demonstrated the system to existing ExtraDev clients
such as accounting firms seeking to secure tax returns and
financial information and law firms for the security of legal
documents. In addition, the technology can be used to secure
any type of document content, from medical information to sensitive
personal information such as social security and credit card
numbers.
ExtraDev has approximately 100 professional and government
clients, 3 secured data centers locations, 2 in New York State and 1 in Northern California. Headquartered in
Rochester, they have been
providing Cloud Computing solutions to their clients since 2002.
They have been at the forefront of the industry and have
experienced significant growth in their Cloud Services offerings to
the point that they are now 100% Cloud focused.
Patrick White, CEO of DSS states:
"As shown by the recent major information security breeches at Sony
Corporation and the "Wiki leaks" debacle, information security
continues to be a critical necessity for businesses and
individuals. Firewalls are being compromised. Our
patented AuthentiGuard® DX technology is the second line of defense
since the raw data is protected after a fire wall breech. I really
feel it's a disruptive patented technology in that regards since it
has the potential to replace many of the outdated information
security technologies on the market."
White continued, "The acquisition of ExtraDev provides us the
infrastructure and delivery method necessary to commercialize this
important software product. Also, ExtraDev has a professional
client base that lends itself to needs for this technology.
We anticipate that our new 'Digital Product' division will provide
significant value for our shareholders. This truly is a major
day for DSS as it enters the company into the massive cloud
computing world with a compelling information security product."
"We're excited about the combination of capabilities surrounding
this acquisition," says Mike Roy,
CEO of ExtraDev. "With the existing software assets and
intellectual property of DSS in conjunction with ExtraDev's data
centers space and development capability this acquisition has all
the components needed to develop cutting-edge solutions satisfying
a very significant set of needs in the digital marketplace."
As consideration for the acquisition, DSS assumed liabilities of
ExtraDev of approximately $388,000,
and issued Mr. Roy and Mr. Trueblood, as new employees of DSS, an
aggregate of 94,336 restricted shares of the Company's common
stock, plus options to purchase an aggregate of 65,664 shares of
the Company's common stock, both which vest over time, pursuant to
DSS' 2004 Employee Stock Option Plan, which authorizes the issuance
of restricted stock and options to employees.
"Cloud Computing" is the practice of using a network of remote
servers hosted on the Internet to store, manage, and process data,
rather than a local server or personal computer. According
to a report published by Arizona-based market research firm In-Stat,
"by 2014, businesses in the United
States will spend more than $13
billion on cloud computing and managed hosting services.
This is in comparison to a trifling $3
billion at present." In addition, a study conducted by
IBM, based on various market estimates, found that the global cloud
computing market is expected to grow to $126
billion by 2012, a staggering increase from the $47 billion spent just in 2008.
About ExtraDev, Inc.
ExtraDev is a leader and innovator in the hosted solutions
business. Since 1998 ExtraDev has provided data center
centric solutions to all types of businesses and local governments
nationwide. The company is now 100% dedicated to Cloud
Services. Since 2002, the company has been involved in the
Software-as-a-Service industry (SaaS) – well before most people
even new it existed. They have developed a world class
capability that allows them to provide enterprise level IT
solutions to companies and firms of all sizes. ExtraDev has
developed a proprietary CloudZone Application Gateway which creates
a continuum of possible Cloud solutions for companies that need
robust, enterprise class server solutions in the cloud.
Headquartered in Rochester,
NY, ExtraDev has been a Microsoft Gold Certified Partner
since 2002, consistently ranking in the top 10% of Microsoft
Partners based on their participation in the annual partner survey.
For more information, visit: www.extrashare.com.
About Document Security Systems, Inc
Document Security Systems is a world leader in the development
of optical deterrent technologies that help prevent counterfeiting
and brand fraud from the use of the most advanced scanners, copiers
and imaging systems in the market. The company's patented and
patent-pending technologies protect valuable documents and printed
products from counterfeiters and identity thieves. Document
Security Systems' customers, which include international
governments, major corporations and world financial institutions,
use its covert and overt technologies to protect a number of
applications including, but not limited to, currency, vital
records, brand protection, ID Cards, internet commerce, passports
and gift certificates. Document Security Systems' strategy is to
become the world's leading producer of cutting-edge security
technologies for paper, plastic and electronically generated
printed assets.
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More information about Document Security Systems, Inc can be
found at www.documentsecurity.com and
www.plasticprintingprofessionals.com, www.protectedpaper.com,
www.dpirochester.com. and www.premiercustompkg.com.
For more information, contact:
Jody Janson
Document Security Systems, Inc.
Investor Relations
Tel: (585) 232-5440
Email: ir@documentsecurity.com
Cautionary Note Regarding Forward-Looking Statements
Statements included in this press release, which are not
historical in nature, are intended to be, and are hereby identified
as "Forward-Looking Statements" for purposes of safe harbor
provided by Section 21E of the Securities Exchange Act of 1934, as
amended. Readers are directed to the company's filings with the
U.S. Securities and Exchange Commission at www.sec.gov for
additional information and a presentation of the risks and
uncertainties that may affect the company's business and results of
operations.
SOURCE Document Security Systems, Inc.