SMT Corporation Will Mark Microchips With SigNature DNA

A "One-Two Punch" With DNA Tracking Addresses the Demands of U.S. Senate

Marketwired

STONY BROOK, NY--(Marketwire -12/12/11)- Applied DNA Sciences, Inc. (OTC.BB: APDN.OB - News) announces that highly regarded microchip distributor SMT Corporation will join APDN in a groundbreaking anti-counterfeiting pilot program, sponsored by an agency of the U.S. Department of Defense.

SMT, internationally known for its highly sophisticated authenticity testing, quality controls and parts-assurance program, will use the APDN SigNature DNA® product to verify the downstream inspection integrity of the microchips it sells to its large and distinguished client base. The DNA codes will certify that a part or other chips in the same lot has passed SMT's rigorous testing. This new system of parts assurance, raised to a forensic level by DNA marking, will be a first in the electronics industry.

Tom Sharpe, SMT Vice-President and co-founder, is an acknowledged thought leader in the industry, and a pathfinder in anti-counterfeiting intelligence, uncovering the newest and ever-changing tactics of counterfeiters.

SMT will be joining an eighteen-month, second-phase pilot program sponsored by the Defense Logistics Agency. The pilot is demonstrating APDN's technology at commercial scale.

The entrance of SMT into the pilot comes on the heels of an amendment passed by the U.S. Senate to significantly strengthen protections against the wave of counterfeit electronic parts coming into the defense supply system. The amendment would require, among many other provisions, that military suppliers deploy counterfeit detection and avoidance systems such as the one under pilot. The amendment passed on November 29 and will next move to the House.

The expanded pilot program will now demonstrate the delivery of what Dr. James A. Hayward, President and CEO of APDN, calls a "one-two punch." Until now, the pilot program has concentrated on newly minted microchips, showing that DNA marking in production makes it possible to identify unequivocally the originality of microchips all along the supply chain. In this way, the system ferrets out those chips which have been altered by unknown third parties. Electronics firms, sub-assembly suppliers, weapons manufacturers or the DOD, all of which use the chips in their products, can then forensically test the DNA code. Rapid reading techniques permit the chips to be screened for APDN's marks in seconds.

Now SMT will also use the same APDN SigNature DNA product on existing chips. The mark will certify the results of the SMT screening process for microchips already in circulation and provided to SMT's defense and aerospace customers.

Dr. Hayward continued: "We believe our partnership with SMT Corporation is, for counterfeiters, very bad news. They will have to contend with the cutting edge integrity testing and overall strategic intelligence of SMT, combined with our uncopyable, unbreakable SigNature DNA platform."

Hearings conducted by the U.S. Senate Armed Services Committee on November 8 exposed the scale and danger of counterfeit electronics in the military supply. In their aftermath, the hearings have underscored the urgency of stepping up the battle against counterfeit electronics. In remarks at those hearings, Senator Carl Levin vowed to take immediate and concrete action. Levin stated "...we are going to build our wall against counterfeits."

SMT's Sharpe praised the APDN SigNature DNA platform as "the most promising technology in the fight against counterfeits. When newly produced microchips are marked with DNA throughout the industry, we will have our reliable wall of prevention."

Sharpe also noted:

"As counterfeiters have unleashed newer techniques to thwart detection, it is critical that the industry responds with new, highly sophisticated counter-measures. Applied DNA Sciences' DNA marking is a reply in kind, including raising the level of downstream assurance on our own anti-counterfeit technologies as performed at SMT."

About SMT

Founded in 1995, SMT Corporation is a global, broad line Independent stocking distributor of electronic components and related peripherals. With more than 1 billion components in stock representing over 600 major component manufacturers, it maintains one of the largest "ready to ship" electronic component inventories in the world.

SMT strives to provide the highest quality value-added services directly to OEMs, and CEM providers as well as both franchised and non-franchised distributors.

About APDN

APDN sells patent-protected DNA security solutions to protect products, brands and intellectual property from counterfeiting and diversion. SigNature DNA is a botanical mark used to authenticate products in a unique manner that essentially cannot be copied, and provide a forensic chain of evidence that can be used to prosecute perpetrators. To learn more, go to www.adnas.com where APDN routinely posts all press releases.

The statements made by APDN may be forward-looking in nature. Forward-looking statements describe APDN's future plans, projections, strategies and expectations, and are based on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of APDN. Actual results could differ materially from those projected due to our short operating history, limited financial resources, limited market acceptance, market competition and various other factors detailed from time to time in APDN's SEC reports and filings, including our Annual Report on Form 10-K, filed on December 8, 2011 and our subsequent quarterly reports on Form 10-Q. APDN undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date hereof to reflect the occurrence of unanticipated events.

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