Exhibit 99.1

AMERICAN BANK NOTE HOLOGRAPHICS, INC.

COMPANY CONTACTS:

Kenneth H. Traub

President and Chief Executive Officer

Tel. (609) 632-0800

KTRAUB@ABNH.COM

Mark J. Bonney

Executive Vice President and Chief Financial Officer

Tel. (609) 632-0800

MBONNEY@ABNH.COM

AMERICAN BANK NOTE HOLOGRAPHICS REPORTS

FIRST QUARTER 2007 FINANCIAL RESULTS

Robbinsville, NJ – May 14, 2007 – American Bank Note Holographics, Inc. (“ABNH” or the “Company”) (OTC Bulletin Board: ABHH) a world leader in the origination, production and marketing of holograms for security applications, today announced financial results for the first quarter ended March 31, 2007.

Sales in the first quarter of 2007 totaled $7.3 million, compared with $10.0 million in the first quarter of 2006, a decrease of $2.7 million or 27%. The decrease in sales was principally the result of the previously announced cessation of Gen 1 HoloMag^TM programs that peaked in the first quarter of 2006 offset in part by an expansion of other programs in the transaction card market including the launch of Gen 2 HoloMag and an expansion of the HoloCard^TM program.

The Company reported net income of $1.0 million or $0.05 per share in the first quarter of 2007 compared to net income of $1.0 million or $0.06 per share in the first quarter of 2006. Higher net income as a percentage of sales has been achieved primarily as a result of the effect of cost reductions associated with the consolidation of our facilities in Robbinsville, New Jersey, lower overall headcount due to improved efficiencies in our operations and certain HoloMag related charges in the 2006 period that do not recur.

Kenneth H. Traub, President and CEO of ABNH, commented, “We have come a long way over the past year. We have strengthened our position in the secure payment card industry, deepened our penetration in other product and document security markets and continued to improve profit margins with improved operating efficiencies throughout the business. We remain excited about our prospects for growth as we continue to implement and expand effective programs for card issuers, governments and consumer branded products to address the escalating global issue of product and document counterfeiting.”

ABNH REPORTS FIRST QUARTER 2007 FINANCIAL RESULTS/2

Mark J. Bonney, Executive Vice President and CFO of the Company stated, “We are achieving increasing financial benefits from our facilities consolidation and other initiatives to improve operating efficiency as reflected by the improvement in gross margin as a percentage of sales and reduction in selling and administrative expenses. With no debt and over $16 million in cash, the Company’s financial condition remains strong.”

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 of transaction cards, identity documents, documents of value, pharmaceuticals and other consumer and industrial products. The Company’s headquarters is in Robbinsville, NJ. For more information, visit www.abnh.com.

# # #

ABNH Forward-Looking Statement

Certain statements contained in this release, including without limitation, statements containing the words “believes,” “intends,” “expects,” “anticipates,” and words of similar import, constitute “forward-looking statements” within the meaning of the private securities litigation reform act of 1995. Such forward-looking statements are based on current management expectations. Numerous factors, including those disclosed herein, those related to transaction card industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2006), may cause results to differ materially from those anticipated in the forward-looking statements. Many of the factors that will determine our future results are beyond our capability to control or predict. These statements are subject to risks and uncertainties and therefore actual results may differ materially. Readers should not place undue reliance on such forward-looking statements which reflect management’s view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

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

-Financial Tables to Follow-

ABNH REPORTS FIRST QUARTER 2007 FINANCIAL RESULTS/3

AMERICAN BANK NOTE HOLOGRAPHICS, INC.

BALANCE SHEETS

(In thousands, except share data)

	March 31, 2007			December 31, 2006
ASSETS
Current Assets:
Cash and cash equivalents	$	16,232		$	15,339
Accounts receivable, net of allowance for doubtful accounts of $350 and $350		4,878			5,002
Inventories, net		2,394			1,962
Deferred income taxes, net		1,485			1,640
Prepaid expenses and other		293			200
Income tax receivable		110			666
Total current assets		25,392			24,809
Machinery, equipment and leasehold improvements, net of accumulated depreciation and amortization of $9,701 and $9,469		5,968			6,098
Deferred income taxes, net		138			—
Other assets		61			61
Total Assets	$	31,559		$	30,968
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	1,804		$	2,291
Accrued expenses		3,124			3,244
Customer advances		81			137
Income taxes payable		1			15
Total current liabilities		5,010			5,687
Long-Term Liabilities		1,172			1,152
Total liabilities		6,182			6,839
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, authorized 5,000,000 shares; no shares issued or outstanding		—			—
Common stock, par value $.01 per share, authorized 40,000,000 shares; issued and outstanding 19,035,138 shares and 18,936,638 shares		190			190
Additional paid-in capital		26,149			25,854
Accumulated deficit		(962	)		(1,915	)
Total Stockholders’ Equity		25,377			24,129
Total Liabilities and Stockholders’ Equity	$	31,559		$	30,968

ABNH REPORTS FIRST QUARTER 2007 FINANCIAL RESULTS/4

AMERICAN BANK NOTE HOLOGRAPHICS, INC.

STATEMENTS OF OPERATIONS

(In thousands, except per share data)

	Three Months Ended March 31,
	2007		2006
Revenue:
Sales	$	7,263	$	9,988
Royalty income		2		—
Total revenue		7,265		9,988
Costs and expenses:
Cost of goods sold, excluding depreciation and amortization		3,227		4,836
Selling and administrative		1,980		2,765
Research and development		418		457
Depreciation and amortization		232		227
Facility consolidation		22		40
Total costs and expenses		5,879		8,325
Operating income		1,386		1,663
Interest income		174		87
Income before provision for income taxes		1,560		1,750
Provision for income taxes		594		700
Net income	$	966	$	1,050
Net income per share:
Basic	$	0.05	$	0.06
Diluted	$	0.05	$	0.05
Weighted average number of shares:
Basic		18,808		18,713
Diluted		19,334		19,797