COMPANY CONTACTS:

Kenneth Traub
President and Chief Executive Officer
Tel. (914) 593-0809
KTRAUB@ABNH.COM

Alan Goldstein
Vice President and Chief Financial Officer
Tel. (914) 593-0844
AGOLDSTEIN@ABNH.COM

AMERICAN BANK NOTE HOLOGRAPHICS REPORTS
SECOND QUARTER FINANCIAL RESULTS

Elmsford, NY - August 2, 2004 – American Bank Note Holographics, Inc. (“ABNH”) (OTC Bulletin Board: ABHH) a world leader in the origination, production and marketing of holograms for security applications, today announced financial results for the second quarter and six months ended June 30, 2004.

Net income for the second quarter of 2004 was $0.3 million, or $0.02 per share, compared with net income of $0.1 million, or $0.01 per share, for the second quarter of 2003. Net income for the first six months of 2004 was $0.7 million, or $0.04 per share, compared with net income of $0.3 million, or $0.02 per share for the first six months of 2003.

Sales for the second quarter of 2004 were $4.9 million, compared with $4.3 million for the second quarter of 2003. Sales for the first six months of 2004 were $9.9 million, compared with $8.8 million for the first six months of 2003.

Kenneth H. Traub, President and CEO of ABNH, commented, “We are pleased to report another strong quarter in which sales and profits increased due to both the expansion of existing accounts as well as the addition of important new accounts. In this quarter, we began implementing a critical new high security document program for the U.S government. We believe this program validates the strong security and physical benefits of our patented demetalized security products, and we hope to expand this success into other major domestic and international secure document programs. We are also delighted to have reached agreement on a new transaction card program that we will begin implementing in the third quarter.”

more

ABNH REPORTS SECOND QUARTER FINANCIAL RESULTS/2

About American Bank Note Holographics, Inc.
American Bank Note Holographics is a world leader in the origination, production, and marketing of holograms. The Company’s products are used primarily for security applications such as counterfeiting protection and authentication of transaction cards, identification cards, documents of value, consumer and industrial products as well as for packaging and design applications. ABNH is headquartered in Elmsford, NY. For more information, visit www.abnh.com

# # #

ABNH Forward-Looking Statement

This news release includes forward-looking statements that involve risks and uncertainties. Although the Company believes such statements are reasonable, it can make no assurance that such statements will prove to be correct. Such statements are subject to certain factors that may cause results to differ materially from the forward-looking statements. Such factors include the risk factors discussed in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, a copy of which may be obtained from the Company without charge. The Company undertakes no obligation to publicly release results of any of these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected results.

This release and prior releases are available on the ABNH Web site at www.abnh.com

-Financial Tables to Follow-

ABNH REPORTS SECOND QUARTER FINANCIAL RESULTS/3

AMERICAN BANK NOTE HOLOGRAPHICS, INC.
CONDENSED BALANCE SHEETS
(In thousands, except share data)

ABNH REPORTS SECOND QUARTER FINANCIAL RESULTS/4

AMERICAN BANK NOTE HOLOGRAPHICS, INC.
CONDENSED STATEMENTS OF OPERATIONS - UNAUDITED
(In thousands, except per share data)