A new and unique setup for Positron Annihilation Spectroscopy has been established and optimized at the superconducting linear electron accelerator ELBE at Helmholtz-Zentrum Dresden-Rossendorf (Germany). The intense, pulsed (26 MHz) photon source (bremsstrahlung with energies up to 16 MeV) is used to generate positrons by means of pair production throughout the entire sample volume. Due to the very short gamma bunches (< 5 ps temporal length), the facility for Gamma-induced Positron Spectroscopy (GiPS) is suitable for positron lifetime spectroscopy using the accelerator's radiofrequency as time reference. Positron lifetime and Doppler broadening Spectroscopy are employed by a coincident measurement (Age-Momentum Correlation) of the time-of-arrival and energy of the annihilation photons which in turn significantly reduces the background of scattered photons resulting in spectra with high signal to background ratios. Simulations of the setup using the GEANT4 framework have been performed to yield optimum positron generation rates for various sample materials and improved background conditions. (C) 2011 Elsevier B.V. All rights reserved.