Applied DNA Sciences Signs Fifth Manufacturer for Signature DNA Marking in DLA Program

OCMs and Prime Contractors Enhance a DNA-Assured Supply Chain

Marketwired

STONY BROOK, NY--(Marketwired - Oct 2, 2013) - Applied DNA Sciences, Inc. (OTCQB: APDN), (Twitter: @APDN), a provider of DNA-based anti-counterfeiting technology and product authentication solutions, announced today that a fifth Original Component Manufacturer (OCM) has signed a contract allowing SigNature® DNA marking of parts under the Defense Logistics Agency (DLA) requirement for use of SigNature DNA marking on certain high reliability microcircuits. The signing brings the number of companies using SigNature DNA marking for DLA to 22, including a prime, one original equipment manufacturer (OEM), thirteen distributors, two authorized distributors, and the five OCMs.

The growing number of manufacturers marks a significant milestone in the company's technology support of the DLA program. As required by the program, the manufacturers are using an Authenticity Mark. This Mark, since it is applied by the manufacturer, assures the originality of a part wherever it travels in the supply-chain, and however long it is in existence. Manufacturers are also free to apply this Mark to other product lines, including commercial lines. As a group, the manufacturers using SigNature DNA marking produce specialized, high-value components. As such they play a critical part in the military supply chain, far out of proportion to their production volume. Specialized parts being marked with SigNature DNA include parts for guidance systems, flight control, weapons control, navigation systems and others. These parts require a tightly coupled supply chain using an authenticity system at the highest forensic level.

APDN officials pointed out that the new signings show important progress along the company's Technology Roadmap. The strategy focused first on involving independent distributors, and is fast progressing to authorized channels, manufacturers, and recently the first prime manufacturer.

Last month, DLA modified its FAQs (Frequently Asked Questions) on its website to note the modification of the long-term contracts with the prime contractors who help to manage various DLA sites. The modification requires that the SigNature DNA marking requirement also applies to purchases of FSC 5962 items made by DLA's Industrial Product-Support Vendors (IPVs). IPVs must now follow DLA contract requirements and procure the item with a SigNature DNA mark from DLA qualified sources. IPV FSC 5962 items have the DNA mark of the qualified source of supply who provided the item to the IPV. As of September, 2013, the list of IPVs and the DLA field location they support include the following:

  • Jacksonville, FL (IPV-SAIC)
  • North Island, CA (IPV-SAIC)
  • Cherry Point, NC (IPV-SAIC)
  • Warner Robins AFB, GA (IPV-Lockheed Martin)
  • Hill AFB, UT (IPV-Lockheed Martin)
  • Tinker AFB, OK (IPV-Lockheed Martin)
  • Tobyhanna, PA (IPV-Herdon)

Janice Meraglia, Vice President of Government and Military Programs for APDN, pointed out:

"Links between manufacturers and prime contractors can be close. We believe that the primes will be more and more motivated to flow down requirements such as SigNature DNA marking to their own suppliers, including manufacturers, especially as regulations stemming from National Defense Authorization Act of Fiscal Year 2012 Section 818 come into effect."

Dr. James A. Hayward, CEO and President of Applied DNA Sciences, commented,

"Engaging manufacturers has always been the central goal of our electronics anti-counterfeiting program. We believe manufacturers will increasingly feel compelled to explore and adopt our technology. This will be a critical contribution to an assured supply-chain for both the military and commercial sectors."

About Applied DNA Sciences

APDN is a provider of botanical-DNA based security and authentication solutions that can help protect products, brands and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion. SigNature® DNA and smartDNA, our principal anti-counterfeiting and product authentication solutions that essentially cannot be copied, provide a forensic chain of evidence and can be used to prosecute perpetrators. 

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 20, 2012 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.

Contact:
MEDIA CONTACT:
Mitchell Miller
239-240-8818
fax: 631-444-8848

INVESTOR CONTACT:
Debbie Bailey
631-240-8817
fax: 631-444-8848

FCMN Email Contact
Web site: http://www.adnas.com
Twitter: @APDN, @APDNInvestor.

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