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Optical Security Group, Inc. Announces Extension of Licensing Agreement

31 July 1998

Optical Security Group, Inc. Announces Extension of Licensing Agreement With the American Association of Motor Vehicle Administrators (AAMVA)

    DENVER, July 31 -- Optical Security Group, Inc.
, today announced the signing of an extension until the year
2002 of its current agreement with AAMVA under which AAMVA will cooperatively
and exclusively sell OpSec's proprietary Secure Temporary License Plate to its
membership.  AAMVA is an international association whose members include all
of the United States and Canadian motor vehicle administrators and state and
provincial law enforcement agencies.
    The secure temporary license plate, developed and patented by OpSec is
presently being used by the States of Colorado, New Mexico, Arizona, Wyoming,
Indiana, Kentucky, West Virginia, Maryland, Virginia, New Jersey and the
District of Columbia.  The product is designed to protect temporary license
plates against unauthorized counterfeiting and alteration.  The design
incorporates OpSec's patented use of holography and a write-resistant
overlaminate to protect the expiration dates of the permits.
    Commenting on the agreement, Mr. Mark Turnage, President and Chief
Operating Officer of OpSec said, "We are very pleased to extend this agreement
with AAMVA.  With this partnership, AAMVA's membership can enjoy the
advantages of the standardization of the document across State lines."  He
added, "This obviously allows law enforcement to provide better security to
their citizens.  OpSec is pleased to be working with the leading association
of motor vehicle administrators and law enforcement officials."
    John Stranquist, Chief Executive officer of AAMVA noted, "This partnership
is very good for AAMVA and especially its member jurisdictions.  Secure
temporary license plates are important in closing a loophole in the
registration process of motor vehicles.  Our member jurisdictions have enjoyed
considerable success using OpSec's products, which have proven effective in
combatting fraud and forgery of temporary license plates."
    OpSec's imaging technology is employed in tamper-evident packaging labels;
authenticating labels and tags for consumer product protection; and protection
against counterfeiting of documents of value, checks and cards.
    This press release contains forward-looking statements that involve risks
and uncertainties which could cause the Company's actual results to differ
materially from the results discussed herein.  Factors that might cause such a
difference include, but are not limited to, changes in demand for the
Company's products and services, changes in the level of operating expenses,
competitive conditions and product supply.  Recipients of this press release
are cautioned not to place undue reliance on the forward-looking statements
made herein.