Authentidate Holding receives Nasdaq deficiency notification

Authentidate Holding Corp. (Nasdaq: ADAT), a worldwide provider of secure health information exchange, workflow management services and telehealth solutions, today announced that it received a deficiency notification from the Nasdaq Stock Market dated May 26, 2010 as the result of Authentidate not complying with the $1 minimum closing bid price requirement of Nasdaq Listing Rule 5550(a)(2) during the consecutive 30 business day period from April 13, 2010 through May 25, 2010. This notification has no effect on the listing of the company's common stock at this time.

The company's common stock is currently listed for trading on The Nasdaq Capital Market and, pursuant to Nasdaq Listing Rules, it has been afforded a grace period of 180 calendar days in which to regain compliance with the minimum bid price requirement. To regain compliance, the company must meet or exceed the $1 minimum closing bid price for a minimum of 10 consecutive business days during the grace period. If the company is unable to achieve this standard during the grace period, it will be eligible for an additional grace period of 180 calendar days provided that it meets the initial listing criteria, other than the minimum bid price requirement, for The Nasdaq Capital Market. If the company does not regain compliance during the initial grace period and is not eligible for an additional grace period, Nasdaq will provide written notice that the company's common stock is subject to delisting from The Nasdaq Capital Market. In that event, the company may appeal such decision to a hearings panel. There can be no guarantee that the company will be able to regain compliance with this requirement.

Ben Benjamin, President of Authentidate, stated, "Although we are disappointed in the current stock price, we continue to believe in the value of our business and its technologies. The recognition we have gained throughout the healthcare industry for our Inscrybe Healthcare, hospital discharge and telehealth solutions has been steadily increasing and has led to several key strategic relationships over the past year. We are continuing to develop market awareness for each of our solutions, which we expect will contribute to increased revenues. As a result, we remain optimistic about our company's growth prospects and we will continue to work towards expanding our operations."