Another Forty German health insurance corporations will migrate to Authentidate's Scan Signature Solution

SCHENECTADY, NY/DUSSELDORF, Germany
January 26, 2004

Authentidate International, AG, a subsidiary of Authentidate Holding Corp. (Nasdaq: ADAT) announced today that it has been selected by the ITSC GmbH, one of the leading service organizations for Ger-man health care insurance organizations, as strategic partner for implementing signature based business solutions. The agreement initially calls for the integration of Authenti-Date's Scan Signature Solution into ITSC's document scanning software, and will later include archiving, email and other Authentidate solutions. To achieve legal compliance with German regulations for scan processing, ITSC is using Authentidate's proven technology to secure electronic data. ITSCs forty scan service cus-tomers, German health insurance organizations, will migrate to electronic document ar-chiving, based on Authentidate's technology.

While financial terms were not disclosed, Authentidate will generate revenues through annual software and license fees based upon transaction volume.

Under German law, it is required that Germany's health care organizations use legally compliant digital signatures (qualified signatures) by August 2004 if paper originals will be destroyed. The huge paper volumes require fully automated signature generation and veri-fication processing, which is provided by Authentidate's Scan Signature Solution. If no qualified signatures are used within the electronic scan process, then by August 2004, legal regulations require additional archiving of each paper original. Authentidate's unique Scan Signature Solution eliminates the need for health care organi-zations to archive these paper originals, which results in substantial process and cost op-timizations.

Authentidate's Scan Signature Solution is already approved by the German regulatory Office for Insurance Organizations and in use by various other health care insurance or-ganizations and scan service providers.

"Because of their unique solutions, their expertise and outstanding customer references, we have chosen Authentidate, who is also a Partner of ISKV (the leading software pro-vider for public health care organizations)," stated Martin Behmann, Managing Director, ITSC GmbH Hannover. "The unique modular architecture of Authentidate's software al-lows us to enhance and improve our installed solutions easily and to provide competitive priced services to our customers improving their competitive position."

Marc Willems, Member of the Executive Board at Authentidate International AG added "We are looking forward to a reliable and successful partnership with ITSC, one of the larg-est service providers for health care insurance organizations. This partnership will also support substantially establishing common technical and business standards, which will provide important benefits for health care insurance organizations."

Learn more about Authentidate's Signature Solutions and others on March, 11th 2004 in Duesseldorf/Germany. Please visit: www.enterprise-signature-day.de

About Authentidate Holding Corp.
Authentidate Holding Corp. (AHC) is the holding company of five business units; DocStar, Authen-tiDate International AG, Authentidate, Inc., DJS Marketing Group/Computer Professionals Interna-tional and Trac Medical Solutions, Inc. DocStar sells a complete line of proprietary document imag-ing 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 au-thority 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 pro-jects, staff augmentation, out-tasking, outsourcing services and resells computer related products. Trac Medical uses the Authentidate service in the medical supply business.

About 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 signa-ture laws and European signature directives.

Authentidate is also the first accredited vendor focusing business process solutions, based on elec-tronic signatures and timestamping technology. These solutions are featuring by easy integration, high economic efficiency, platform independence and protection of investment.

The Authentidate solutions are nationally and internationally used by well-known companies of different industries. The customers utilize the signature solutions to achieve legal security within eBilling, archiving, scanning and workflow. In addition Authentidate's technology is already inte-grated in different products of other manufacturers, therefore legal security for business processes is automatically available for many companies.

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

About ITSC GmbH
ITSC is a leading information and service center for IS KV software solutions in Germany. ITSC's continuous development efforts for new products, clearly focused on IS KV applications, compre-hensive services for system and network management and efficient paper to file scan processing, ensures highly competitive services, including unique values to ITSCs customers.

ITSC specializes in data processing, service and consulting covering all areas around the IS KV - System (IT-solutions for public health care organizations) for health insurance companies. ITSC was founded in January, 1979 and is headquartered in Hannover, Germany with branch of-fices in Hamburg, Frankfurt and Stuttgart. ITSC services more than 80 health insurance corpora-tions.

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.