SCHENECTADY, N. Y.

August 8, 2002

Deutsche Telecom’s T-Systems subsidiary (NYSE: DT) and Authentidate International AG, a subsidiary of Authentidate Holding Corporation (Nasdaq: ADAT), have developed a process by means of which a large number of documents is automatically signed and sent.
Invoices and orders will no longer have to be "signed" individually in order to ensure a legally secure transmission via the Internet. T-Systems and Authentidate International AG have developed a process by means of which a large number of documents is automatically signed and sent. This is the first solution available in Germany addressing the problem of automatic electronic transmission of invoices that complies with the legal requirements of the new Sales Tax Law. Also, the technology complies with the requirements of the EU Directive and can thus be used for invoicing international business transactions.

The technology automatically sends invoices to the e-mail addresses of several hundreds of thousands of recipients at the same time. Thanks to the electronic signature, which complies with the German Signature Law, this solution also meets the requirements of the amending statute of the Sales Tax Law (§ 14 of the Sales Tax Law). Since 1 January 2002, this law stipulates that electronic invoices need to be provided with a special signature pursuant to the Signature Law - otherwise VAT cannot be deducted or a paper document has to be added.

At the heart of this process is the e-billing solution developed by Authentidate. T-Systems has installed this software in its trust centre, T-Telesec, offering the transmission of electronically signed invoices as one of its services. Companies simply send their data to TTelesec, the trust centre then signs these documents, provides them with a time stamp, and sends them on. "This solution can be used irrespective of which software a company uses to draw up their invoices," explains T-Telesec head, Bernd Kowalski. The personal signature is attached by means of T-Telesec smart cards.

Since 1997, T-Telesec has been accredited by the German Regulatory Authority for Telecommunications and Posts as a trust centre, at that time being the first certification office in Germany to be officially licensed to apply electronic signatures. Due to its many years of experience, the underlying encoding technology is considered to be particularly secure and reliable.

Authentidate is also an accredited certification service provider focusing on qualified time stamps.

This is the first time that two accredited trust centres are consolidating their know-how in order to gain secure, modern and efficient invoicing processes for Germany and Europe.

Authentidate International AG
Authentidate International AG (www.authentidate.de), Düsseldorf, Germany is the first Accredited Certification Provider, certified by the German Regulatory Authority for Telecommunications and Posts (RegTP), focusing legal binding timestamps compliant to the strong German electronic signature laws and European signature directives. Thus, the time signatures supplied by Authentidate International AG for any electronic data provide the highest level of protection recognized by law in the form of qualified digital signatures.

Authentidate is also the first accredited vendor focusing business process solutions, based on electronic signatures and time stamping technology. Authentidate’s Business Solutions feature short ROI (return of invest) cycles, simple integration, low operating expense and ease of use. The unique design enables most customers for the first time receiving substantial profit contributions from signature and time stamping technologies.

The Authentidate Group is worldwide present in Europe, USA and through partners also in Asia. Authentidate Holding Corp, Inc. located in USA (New York) is listed on the NASDAQ stock exchange (ADAT) and in Germany (WKN 893715).

About Authentidate Holding Corp.
Authentidate Holding Corp. (AHC) is the holding company of five business units: DocSTAR, Authentidate International AG, Authentidate, Inc., DJS Marketing Group/Computer Professionals International and Trac Medical Solutions, Inc. DocStar sells a complete line of proprietary document imaging products. Authentidate and Authentidate AG provide the authentication of digital data through its proprietary and patent pending technology. Authentidate intends to establish itself as the authority on "content security" as it is a growing sector of the electronic network security infrastructure market. DJS delivers professional services centered around technology systems integration projects, staff augmentation, outtasking, outsourcing services and resells computer related products. Trac Medical uses the Authentidate service in the medical supply business.

T-Systems
Recording sales of 11.9 billion Euro (restated *), T-Systems is the second largest system retailer in Europe. The Telekom subsidiary consolidates its worldwide know-how from the information technology (IT) and telecommunication (TC) fields, thus creating the basis for e-business and convergence solutions such as software on a rental basis (Application Service Providing, or ASP), applications for the maintenance of customer relationships (Customer Relationship Management), or electronic markets. The company is headquartered in Frankfurt am Main. On a worldwide scale, T-Systems is present in more than 20 countries, employing a workforce of around 43,500.

* A reorganization within the group necessitated an adjustment of the audited annual sales of 13.8 billion Euro. In future, any business of Deutsche Telekom with national carriers will be shown on the books of T-Com, any transactions with international telecommunication service providers on the books of T-Systems.