Exhibit 99.1

AMERICAN BANK NOTE HOLOGRAPHICS, INC.

COMPANY CONTACTS:

Kenneth H. Traub
President and Chief Executive Officer
Tel. (609) 632-0800
KTRAUB@ABNH.COM

Mark J. Bonney
Executive Vice President and Chief Financial Officer
Tel. (609) 632-0800
MBONNEY@ABNH.COM

AMERICAN BANK NOTE HOLOGRAPHICS REPORTS
SECOND QUARTER 2006 FINANCIAL RESULTS

 

Robbinsville, NJ — August 11, 2006 — American Bank Note Holographics, Inc.  (“ABNH” or the “Company”) (OTC Bulletin Board: ABHH) a world leader in the origination, production, and marketing of holograms for security applications, today announced financial results for the second quarter and six months ended June 30, 2006.

Sales in the second quarter of 2006 totaled $8.4 million, compared with $6.9 million in the second quarter of 2005, an increase of $1.5 million or 22%. Sales in the first six months of 2006 totaled $18.4 million compared to $13.3 million in the comparable period in 2005, a $5.1 million or 38% increase.

The Company reported net income of $1.0 million or $0.05 per share in the second quarter of 2006 compared to net income of $0.5 million or $0.02 per share in the second quarter of 2005. For the six months ended June 30, 2006 net income amounted to $2.0 million or $0.10 per share compared to $1.1 million or $0.06 per share in the comparable prior year period.

As previously reported, certain shipments of Visa HoloMag™ totaling approximately $2.3 million that were completed and invoiced during the quarter ended March 31, 2006 were not recognized as revenue in that quarter as collection of those amounts were not considered probable at that time as a result of the Visa decision to discontinue their HoloMag implementation.  Approximately $0.9 million of those amounts were collected and recognized as



The following information was filed by American Bank Note Holographics Inc on Friday, August 11, 2006 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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