Applied DNA Sciences Expands Base for Signature DNA Marking of Electronics: Forty-Two Companies Rally to DNA Mark

STONY BROOK, NY--(Marketwired - May 7, 2013) - Applied DNA Sciences, Inc. (OTCBB: APDN), (Twitter: @APDN), a provider of DNA-based anti-counterfeiting technology and product authentication solutions today issued its latest progress update to its program for SigNature® DNA-marking of electronics supplied to the U.S. Defense Logistics Agency (DLA). APDN lists forty-two electronics companies that are either under contract, have entered into contract negotiation, or have requested and received a SigNature DNA quotation. The companies include Original Equipment Manufacturers (OEMs), Original Component Manufacturers (OCMs), and as designated by DLA, Qualified Manufacturers (QML), including both qualified independent and authorized distributors. 

DLA announced in late January that it would subsidize costs for companies implementing SigNature® DNA marks. Once the reimbursement policy was instituted, and initial DNA-marking customers trained and certified, APDN began incremental DNA shipments in March.

APDN noted that both the number and rate of contract signings have increased since the reimbursement policy was announced. The accelerated sales cycle is a sign of additional momentum in the DNA-compliant electronics vertical. Other developments include the recruitment of a second company providing third party SigNature DNA marking services and increased efficiency in the certification times for onboarding customers.

APDN stated that 10 companies have now signed contracts to provide SigNature DNA marking on parts provided to DLA, while 9 more have contracts under negotiation, and 23 possess requested quotations for DNA. (APDN noted that the negotiation process does not guarantee or automatically lead to a signed agreement.) These suppliers also support U.S. Department of Defense prime contractors and other military/aerospace companies. Many are looking to expand their SigNature DNA-marking capabilities beyond DLA and offer the forensically secured supply-chain platform to their existing and new OEM and Contract Manufacturer (CM) customers.

Manufacturers using the SigNature DNA platform will use an Authentication Mark™, forensically verifying originality of a component anywhere along the supply chain. Distributors are assigned a SigNature DNA Provenance Mark™, verifying the immediate source of the part. The Provenance Mark assures the identity of the distributor and verifies that the distributor possesses original component manufacturer traceability or test method paperwork using the widely accepted anti-counterfeiting standard SAE AS6081.

The company notes that SigNature DNA is approved only for companies certified by DLA as trusted sources. As such, the APDN platform is closely linked to DLA quality programs, and is one piece in the effort to prevent counterfeit parts from entering the supply chain. Certifications of the DNA-compliance include the Qualified Manufacturers List (QML), the Qualified Products List (QPL), and the Qualified Testing Suppliers List (QTSL.) In order to qualify for QTSL, companies are required by DLA to implement SigNature DNA marking on designated parts.

Some members of the electronics industry resisted the requirement for DNA marking due to concerns over increased costs or process impact. Early adopters are seeing a rapid return on their investment, with increasing sales to DLA. APDN views the contract increment as evidence of increasing industry acceptance.

Dr. James A. Hayward, CEO and President of Applied DNA Sciences, stated, "I believe that our company's significant commitment of resources to aid the military electronics program is bearing fruit. Our road map for implementation began with the independent distributors, and continues systematically through authorized distributors, OCMs and the prime contractors. We are seeing steady progress in all categories."

Janice Meraglia, APDN Vice President for Military and Government Programs, stated, "We are now strongly branded in the electronics industry, and that brand is recognized and bringing more companies to us. We believe there is a large potential for this technology to transition to other high reliability supply, beyond defense, such as medical and automotive equipment."

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.