Sep 07, 2005

Authentidate Holding Corp. (Nasdaq:ADAT) announced today that it has filed an amendment to its Annual Report on Form 10-K for the fiscal year ended June 30, 2004 in response to comments by the Staff of the Securities and Exchange Commission. The amended Form 10-K was filed to amend the Company's balance sheet and statement of cash flows included in the financial statements to the Company's Form 10-K for the fiscal year ended June 30, 2004 to reflect the Company's reclassification of its investments in auction rate securities from cash equivalents to marketable securities. The Company also stated that this change has no effect on the statement of operations or statement of shareholders' equity included in its 2004 consolidated financial statements.

In addition, the Company disclosed in its amended Form 10-K that in August 2005, it was notified of the filing of a complaint in which the plaintiff alleges that the Company's products and systems incorporating secure time stamping technology, including but not limited to its Electronic Postmark system, infringes certain of the plaintiff's patent rights. The complaint has not yet been served and the Company is currently assessing the situation and the patents being asserted, and has not yet responded to this notification. However, while Authentidate intends to vigorously defend any claim, it generally does not comment on claims asserted against the Company.

About Authentidate Holding Corp.

Authentidate Holding Corp. (AHC) is the holding company which operates its software and services businesses in three segments: the Security Software Solutions Segment (fka Authentidate Segment, including Authentidate, Inc., Trac Medical Solutions, Inc. and Authentidate International AG), the Document Management Solutions Segment (fka Docstar Division) and the Systems Integration Segment (fka DJS). The Company is a worldwide provider of secure enterprise workflow management solutions that incorporate its proprietary and patent pending content authentication technology. Authentidate's offerings include the United States Postal Service Electronic Postmark Service (USPS EPM(R)), electronic signing solutions, and electronic forms processing solutions. Authentidate also provides secure document management solutions, and enterprise network security products and services.

This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Act of 1934. When used in this release, the words "believe," "anticipate," "think," "intend," "plan," "will be," "expect," and similar expressions identify such forward-looking statements. Such statements regarding future events and/or the future financial performance of The Company are subject to certain risks and uncertainties, which could cause actual events or the actual future results of the Company to differ materially from any forward-looking statement. Such risks and uncertainties include, among other things, the availability of any needed financing, the Company's ability to implement its business plan for various applications of its technologies, the impact of competition, the management of growth, and the other risks and uncertainties that may be detailed from time to time in the Company's reports filed with the Securities and Exchange Commission. In light of the significant risks and uncertainties inherent in the forward-looking statements included herein, the inclusion of such statements should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

SOURCE: Authentidate Holding Corp.