SOURCE: Applied DNA Sciences

Applied DNA Sciences

April 26, 2011 08:30 ET

Applied DNA Sciences Begins DNA Marking Microchips for a U.S. Government Agency

Protecting the Electronics Industry and Government Throughout the Supply Chain

STONY BROOK, NY--(Marketwire - Apr 26, 2011) - Applied DNA Sciences, Inc. (OTCBB: APDN), and an agency of the U.S. government have launched a pilot program to show the logistic facility of DNA marking to block counterfeit microchips in mission-critical government supply chains.

Applied DNA Sciences, a provider of DNA-based anti-counterfeiting technology and product authentication solutions, is marking microchips with botanical SigNature ® DNA taggants to ensure authenticity and guard against counterfeiting. The science of DNA authentication has been reviewed by the U.S. Government (Department of Energy) and several non-US governments who have independently found that DNA taggants cannot be counterfeited and provide forensic proof of provenance. Technical efficacy has already been proven in commercial supply.

DNA Authentication: The Only Forensic Anti-Counterfeit Program

Fact: no adequate solution to prevent the invasion of counterfeit microchips into the supply chains has arisen before APDN's DNA taggants. (For more, see the feature article "How DNA authentication can stop the deadly flood of fake microchips," on the Applied DNA web site.) "There is a significant opportunity for APDN to address secure parts standards across the entire semiconductor industry," stated Dr. James Hayward, APDN CEO and President.

Wide Impact of Anti-Counterfeiting Measures

The spread of counterfeit products of all types is a problem of global proportion, requiring enhanced solutions and anti-counterfeiting safeguards.

"I feel that DNA marking provides the basis of a universal, forensic solution to any diverse supply chain," stated retired Vice Admiral Edward Straw. "While this first electronics focused pilot program is designed to safeguard microchips, the versatility of this technology allows for easy transferability to other commodity areas ranging from fasteners and o-rings to textiles and pharmaceuticals," continued Admiral Straw.

This process has been used extensively in other industries for brand protection, counterfeit prevention, and, in the case of cash-in-transit, criminal prosecution and the deterrence of violent crime. It is a proven, unique law enforcement technology.

"DNA marking has been validated and proven to be logistically easy to implement in the commercial semiconductor industry and APDN is looking forward to the opportunity to work with the government to showcase its versatility in support of the War Fighters," stated Dr. Hayward. "DNA marking is the premiere forensic anti-counterfeiting platform, and by implementing this program the U.S. Government is taking a major step toward adding a powerful tool for future counterfeit detection and prevention and reducing the risk of procuring sub-standard parts," continued Dr. Hayward.

Secure Microchips

With burgeoning growth, the microchip industry has become a target for profiteering counterfeiters and diversion schemes. According to the Semiconductor Industry Association (SIA), America's critical semiconductor industry employs 185,000 people in the U.S. and provides the enabling technology for America's $1.1 trillion high-tech industries with a U.S. workforce of nearly 6 million people.

"Despite continuing macroeconomic uncertainty, the semiconductor industry is slated to close the year at record sales levels with year-over-year growth rates not experienced in nearly a decade," said SIA President Brian Toohey. "The application of advanced technologies continues to further the proliferation of semiconductor content into a wider range of end products including mediatablets, smartphones, eReaders, and automobiles, resulting in impressive semiconductor sales in 2010," Toohey noted.

The World Semiconductor Trade Statistics (an independent, non-profit organization of 64 semiconductor companies representing more than 70% of the world semiconductor market) forecasts the semiconductor market to grow by 4.5 percent to $313.8 billion in 2011, following an estimated 32.7 percent increase to $300.4 billion in 2010.

For images and more on marking microchips, see our social media press release here.

About APDN
APDN sells patented 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 where APDN routinely posts all press releases.

The statements made by APDN may be forward-looking in nature and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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 15, 2010 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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