Germany's Largest Membership Travel Agency Cooperative Uses Authentidate Technology

SCHENECTADY, N.Y. and DUSSELDORF, Germany
Oct 19, 2004

Authentidate International, AG, a subsidiary of Authentidate Holding Corp. (Nasdaq: ADAT) announced today that it has signed an agreement with Schmetterling, a German travel agency with 2,300 agents. Schmetterling believes that this relationship enables it to become the first German company in the travel and tourism industry to provide its clientele with invoices in electronic form including a legally required signature. The signed, electronic invoices comply with the current requirements of the German Sales Tax Law and can be used by the clients for the deduction of input tax.

Authentidate will generate revenue through software licenses and per transaction fees.

Schmetterling provides a variety of different services to its clients and historically has invoiced them with individual paper invoices, increasing Schmetterling's cost of doing business. In addition to Schmetterling's costs for paper, printing, postage and envelopes, the client incurred additional costs in processing and checking the paper invoices.

By using the Authentidate signature technology, Schmetterling can now prepare invoices in electronic form, reducing its costs of doing business. Further, the legally valid signature enables the client to claim the deduction of the related sales tax without having to submit a paper invoice.

In addition, Schmetterling's relationship with Authentidate allows it to offer its customers a related service to provide security for these electronic invoices. Schmetterling will provide its customers with access to Authentidate's external service for checking the invoice authenticity. This solution provides the customer with the confidence that the invoice is genuine and not a forgery. This invoice check is also prescribed by German law in order to prevent electronic invoice abuse. The check can be performed in a few seconds through Authentidate's checking service - considerably quicker than the same manual processing of a paper invoice would take.

The solution is web based and Schmetterling's clients only require an e-mail address and access to the Internet in order to receive the electronic, signed invoices.

"The electronic invoice with legally valid signature is a clear bonus for us and our customers," stated Willi Muller, Managing Director of Schmetterling. "The signature technology from the specialists, Authentidate, has already proven itself with numerous, well-known clients, and has enabled us to implement the whole project quickly and professionally."

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 proprietary document imaging software that includes the Authentidate technology. 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, out-tasking, outsourcing services and resells computer related products. Trac Medical offers an electronic form processing solution and utilizes the Authentidate technology to prove the authenticity of the content represented in completed healthcare forms.

About Authentidate International AG

Authentidate International AG (www.Authentidate.de), Dusseldorf, Germany is the first accredited certification provider, certified by the German Regulatory Authority for Telecommunications and Posts (RegTP), specializing in qualified timestamps compliant with the strict regulations of the new German signature law and the European signature guidelines.

Authentidate specializes in business process solutions based on electronic signatures and timestamps. These solutions feature easy integration, high economic efficiency, platform independence and protection of investment.

Nationally and internationally well-known companies in various industries utilize Authentidate signature solutions to achieve legal security in the areas of eBilling, archiving, scanning and workflow. In addition, Authentidate's signature technology is already integrated in products of other manufacturers; therefore legal security for business processes is automatically available for many companies.

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

About Schmetterling:

Schmetterling is medium-sized tourism company which is active across the whole of Germany and employs a 230 strong workforce. With over 2,300 cooperative travel agents, the company has the highest membership for a travel agency cooperative in Germany.

The Schmetterling cooperative is a fully comprehensive service provider for travel agencies. Via the cooperative, the members can attain better terms and conditions for their own agency agreements and thus achieve a higher economic yield. Furthermore, the company also specializes in travel technology and offers its clientele IT solutions such as web-based booking engines and websites.

Schmetterling also runs its own tour organizer, consolidator, insurance service and transport business.

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.