Authentidate Holding Corp. Announces Fiscal 2007 Fourth Quarter and Year End Results

BERKELEY HEIGHTS, N.J.
Sept 13, 2007

Authentidate Holding Corp. (Nasdaq: ADAT), a worldwide provider of software and web-based services that enable enterprises and individuals to exchange information securely and conduct trusted business transactions, today announced financial results for the three months and fiscal year ended June 30, 2007.

Suren Pai, Chief Executive Officer of Authentidate, stated, "During fiscal 2007 we took several steps to sharpen our strategic business focus and realign our operations. We continued to invest in developing our Inscrybe(TM) platform which brings together an integrated platform of capabilities to enable the trusted exchange of content via fax and over the web, and using this platform we launched Inscrybe(TM) Healthcare to target the needs of the healthcare sector. We sold our non-core Document Management Solutions and Systems Integration businesses and recently signed a new agreement with the United States Postal Service(R) (USPS) to continue as a provider of the USPS Electronic Postmark(R) (EPM). Our operating unit in Germany continued to grow acceptance for its electronic invoicing product and made a successful entry into the German healthcare market with its security technology offerings."

"In August 2007, we launched Inscrybe(TM) Office, an innovative application that brings the capabilities of our Inscrybe platform to a broader audience. We believe that Inscrybe Office addresses an unmet need in the marketplace for an easily accessible application that enables the trusted exchange of electronic documents and other content."

Revenue for the three months ended June 30, 2007 increased 56% to $1,320,000 compared to $848,000 for the same period last year. These results reflect increases in transaction volumes and new customers in both our U.S. and German operations.

Net loss for the fourth quarter of fiscal 2007 was $3,575,000, or $0.10 per diluted share, compared to a net loss of $5,921,000, or $0.17 per diluted share, for the fourth quarter of fiscal 2006. The net loss for the 2007 period includes income from discontinued operations, including gain on disposal, of $922,000 for the quarter compared to a loss from discontinued operations of $131,000 for the comparable period in 2006.

Revenue for the fiscal year ended June 30, 2007 was approximately $4,998,000 compared to $4,493,000 for 2006, which includes approximately $623,000 related to the amortization of deferred revenue and other one-time revenue. Excluding these one-time items from the prior year's results, revenue increased approximately 29% for fiscal 2007.

Net loss for the fiscal year ended June 30, 2007 was $15,063,000, or $0.44 per diluted share, compared to a net loss of $17,823,000, or $0.52 per diluted share, for 2006. The net loss for fiscal 2007 includes income from discontinued operations, including gain on disposal, of $1,055,000 for the period compared to a loss from discontinued operations of $388,000 for 2006. The net loss for 2007 reflects continued product development investments related to Inscrybe Healthcare and Inscrybe Office as well as litigation expenses for completed and on-going actions of approximately $2,400,000, or $0.07 per diluted share. The net loss for the prior year period includes incremental legal expenses of approximately $1,150,000 and accrued severance of approximately $670,000, or $0.05 per diluted share.

As of June 30, 2007, the Company's cash and marketable securities totaled $31,631,000, and total deferred revenue totaled $1,370,000.

Commenting on these results, Mr. Pai stated, "Revenue from our continuing operations increased almost 30 percent, driven by our new Inscrybe Healthcare application and the growth of our German operations. We are pleased with the early results of our sales and marketing efforts for Inscrybe Healthcare and the initial feedback from our customers has been overwhelmingly positive, as they realize increased productivity and lower costs in managing orders and revenue cycle workflows."

"We are entering fiscal 2008 with a fresh outlook on our business, improving market traction and leading applications in both the U.S. and Europe. Since most of our applications in the U.S. were launched in fiscal 2007, our main focus moving forward is to continue to build a strong customer base and to become the recognized leader for the trusted exchange of electronic content."

Conference Call and Presentation
Management will host a conference call and slide show presentation at 4:30 p.m. ET on Thursday, September 13, 2007, to discuss the latest corporate developments and results. The dial-in number for callers in the U.S. is (888) 694-4676 and the dial in number for international callers is (973)-582-2737. The access code for all callers is 9192462. The presentation and a live webcast will be available on the Company's website. To access the live webcast and presentation, visit http://www.authentidate.com/, click the "About Us" link, followed by "Investor Relations" on the drop-down menu and then the "Audio Archives" link. Please log on 5 to 10 minutes before start-time in order to download any software that may be necessary.

A replay of the call will be available through September 20, 2007. To access the replay, please dial (877)-519-4471 in the U.S. and (973)-341-3080 internationally, and then enter the access code 9192462. Following the conclusion of the call, the webcast and presentation will also be archived on the Company's website.

About Authentidate Holding Corp.
Authentidate Holding Corp. is a worldwide provider of software and web- based services that enable enterprises and individuals to exchange information securely and conduct trusted business transactions. Our offerings are targeted at enterprises and office professionals, and incorporate security technologies such as electronic signing, identity management, and content authentication to electronically facilitate secure and trusted transactions. In the United States, we also offer our proprietary and patent pending content authentication technology as a web-based service in the form of the United States Postal Service(R) Electronic Postmark(R).

The company operates its business in the United States and Germany. For more information, visit the company's website at http://www.authentidate.com/.

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, related decisions by the USPS, 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.

Authentidate® is a registered trademark of Authentidate Holding Corp. Inscrybe^TM and MyInscrybe^TM are trademarks of Authentidate Holding Corp. All other trade names are the property of their respective owners.