Under the terms of the Letter of Intent, IMS will acquire the Web property and related assets commonly referred to as the LegalStore.com from DSS and as payment will issue to DSS common stock of IMS equal to 30% of the outstanding shares of IMS on the Closing Date. Within 180 days after the Closing Date, or as soon as practicable, IMS will file a Registration Statement on Form S-1 with the Securities and Exchange Commission ("SEC") registering certain shares of IMS common stock, including the agreed number of shares of IMS common stock to be issued to DSS under the Agreement. At which time, the Company intends to declare the Record Date for the issuance of a shareholder dividend of shares of IMS Common Stock, the number of which has yet to be determined, to the beneficial share owners of Document Security Systems, Inc. Common Stock on such Record Date.

Patrick White, Chief Executive Officer and President of Document Security Systems, Inc., stated that, "Although not part of our core business, Legalstore.com is a hidden gem that can be very successful. This transaction will put Legalstore.Com's e-commerce potential in the hands of people dedicated to the Internet commerce sector. Raymond Meyers, Chief Executive Officer of Internet Media Services, Inc. has a proven track record of building successful web-based companies. He has founded, developed and sold several Internet companies with his most recent company being Eboz.com, an advanced marketing software company which was sold to Web.com (Nasdaq: WWWW). Furthermore, we believe the stock dividend, if consummated, will provide an attractive opportunity for DSS shareholders. In addition, this allows our management team to further focus on our core security businesses. "

Raymond Meyers, Chief Executive Officer of Internet Media Services, Inc. stated: "Legalstore.com has traditionally been operating as a business to business model. We feel it has major potential to expand as an Internet legal forms generating business model similar to Robert Shapiro's Legalzoom.com.