DATADOT TECHNOLOGY LIMITED — AGM Information 2009

Oct 15, 2009

==> picture [408 x 112] intentionally omitted <==

Shareholder Presentation Annual General Meeting October 2009

1

Who we are

DataDot Technology Limited (DataDot) is a world leading provider of asset identification, protection and authentication products and services.

DataDot’s strengths include:

• highly innovative technologies. The Company creates new methods of asset identification, protection and authentication which lead to new markets for our products

• preferred asset identification solutions provided to governments, police, insurers and blue-chip customers within the automotive industry

• an increasing global presence and coverage with highly scalable operations. We are rapidly gaining acceptance in markets in which we operate

• growth in revenue and revenue streams

• early growth stages in most of the markets in which we operate with strong potential to expand into new countries/markets

Our lobal network g

Positioned to grow into new markets with new product offerings

==> picture [660 x 330] intentionally omitted <==

----- Start of picture text -----

Regional HQ
For Europe
DDT UK
72%
DDT USA
100%
Regional HQ
for The Americas
Global HQ
Asia Pacific and
Eastern Europe HQ
DDT South Africa - royalty
manufacture under licence
DDT Aust. 100%
DataTraceDNA
Regional HQ 50%
For Africa
----- End of picture text -----

3

Our new senior mana ement team g

• In 2008 the Board sought to employ a new CEO and CFO

• In mid December 2008 Benjamin Bootle was appointed COO

• In April 2009 Benjamin Bootle was appointed CEO

• In June 2009 Ross Hawkey was appointed CFO

4

Our strate gy

New management was recruited and tasked with five key roles:

1. Increase and diversify sales throughout the world

2. Increase manufacturing efficiencies and reduce manufacturing costs

3. Reduce expenses and overheads

4. Restructure staffing and distribution arrangements to focus on driving shareholder returns

5. In partnership with CSIRO, pursue opportunities to commercialise the unique intellectual property within the DataTrace joint venture

5

Our strate - continued gy

After nine months of extensive restructuring and cost reduction, DataDot is now positioned to be a profitable growth-oriented global business

Additional strategies include:

• targeting organic growth, strategic alliances and complementary acquisitions to secure

• shareholder value over time

• using the remodeled distribution network in Australia as a template for the rest of the

• world

• exploring new distribution networks worldwide, using Australia‟s per capita performance

• as a benchmark

6

==> picture [720 x 481] intentionally omitted <==

----- Start of picture text -----

Mission Statement
DataDot Technology Limited is a
world leading provider of asset
identification, protection and
authentication products and
services.
----- End of picture text -----

October 2009

Our roducts p

Unique DNA-like solutions for asset identification, protection and authentication

• DataDotDNA[®]

• DataThreadDNA[TM]

• DataBaseDNA[TM]

• DataTraceDNA[®]

• DD Secure[TM]

• AgTechnix P/L seed and bulk commodity identification technologies[#]

(see Australian Stock Exchange announcement of 2 October 2009)

8

DataDotDNA[®]

Providing assets with their own permanent unique DNA identification tag

• DataDots are tiny microdots laser-etched with multiple lines of code like a microscopic label

• The unique code is stored on our worldwide verification database, DataBaseDNA

• The identifying tags contain information such as VINs, HINs, PINs or business names

==> picture [236 x 205] intentionally omitted <==

==> picture [42 x 41] intentionally omitted <==

Actual Size 1mm

Magnified DataDot

October 2009 1.VIN: Vehicle Identification Number, 2.HIN: Hull Identification Number, 3.PIN: Personal Identification Number (DDT derived code)

9

DataBaseDNA

Significant contributor to preventing theft of high-value assets

• A global web-based database for law enforcement and insurance investigators

• Brings together all registered asset information onto one central database

• DataBaseDNA now hold over one million unique records placing this as a strong value generator for the business in the future

• DataDot will strive to ensure DataBaseDNA will evolve to be a national „equipment bureau‟ with the collaboration of equipment associations,insurance and financial service providers

==> picture [278 x 188] intentionally omitted <==

10

DataTraceDNA[®] - commercialised technology

An emerging global solution incorporating CSIRO patented technology

• Joint venture company with CSIRO

• Engineered micro particles with unique tracers

• Unique physical properties – not replicable

• Presence and concentration detectable by specially developed portable reader – “The Authenticator®”

==> picture [119 x 179] intentionally omitted <==

==> picture [120 x 179] intentionally omitted <==

==> picture [134 x 179] intentionally omitted <==

11

- DataTraceDNA[®] a lications pp

DataTraceDNA® is an engineered particle that when scanned by “The Authenticator” generates unique digital codes. The particle is invisible to the naked eye and is suitable for a number applications.

DataTraceDNA® is targeted for brand protection from counterfeiting, diversion and manufacturing over-runs. Its features include:

• Suitable for use in solvent and water based

• lacquers in a variety of applications

• Surfactant for paints and coatings

• Masterbatch for polymers

• Powder for other applications

Vector	Applications
Ink	Liquid surfactant or powder
Polymer	Masterbatch
Paints & Coatings	Liquid surfactant or powder
Fibre	Masterbatch
Paper & Packaging	Liquid surfactant or powder
Explosives	Powder
Metal/Glass	Powder for Dynamic Metalization process
Concrete	Liquid surfactant or powder

12

DataDotDNA[®] and DataTraceDNA[®]

Combined use creates an enhanced range of security solutions

Comparison table

DataDotDNA®	DataTraceDNA®
Overt	Covert
Specific Code	Generic Code
Identify individual assets	Identify manufacturer /owner
Surface application	Integrated in manufacturing and surface application
Target identification for individual owner	Target identification of mass produced goods

13

DD Secure: The system for business asset & property protection

The DD Secure system is designed for:

• Business and retail premises

• Construction and infrastructure sites

• Council, utility and telecom sites

• Hire and rental sites

• Farm and agricultural equipment

• Tradespersons‟ vehicles

• Trucks and trailers

• Marinas

• School and university campuses

• Government facilities

• Business sites suffering from theft

• Residential premises

DD Secure – continued

DataDot has partnered with Crime Stoppers Australia to develop the DD Secure System, enabling organisations to:

• Control their assets

• Reduce business costs

• Ensure assets are readily identifiable and recoverable

==> picture [85 x 114] intentionally omitted <==

==> picture [97 x 97] intentionally omitted <==

==> picture [180 x 48] intentionally omitted <==

DD Secure - s stem com onents y p

Identifiers

• Microdot labels

• Security seals

• Interactive labels (Identifyz)

• DatatraceDNA[®] forensic security

==> picture [97 x 96] intentionally omitted <==

• Radio Frequency Identification Device (RFID)

• Global Positioning System (GPS)

Signage

• Serialised secure signage and stickers

Communication

• Templates for internal and external communications

• Detection

• Low cost detection kits for Police, second hand shops and pawnbrokers

• Statistics

• Six and 12 monthly performance comparison to ensure effectiveness

• Incident report database

Ke initiatives in the ast nine months y p

New management team has changed the DataDot culture to be a lean, sales-focused, solutions and service driven company with a proven strategy to expand the business globally

Strategy / Change	Impact on performance
Emphasis on high performance culture	• Staff selection and training focused on a high performance culture • New staff KPIs to meet strategic objectives of the company
Targeted marketing on growth markets	• Emphasis on growth of top line • Low cost marketing with direct and measurable results • Marketing with new and existing customers to expand market penetration • Change focus from technology development to customer solutions
Restructuring of sales team & strategy	• Sales team restructured • Remuneration restructured • Diversifying sales from reliance on automotive manufacturers is showing success • Clear budgets for sales team monitored to ensure performance

17

Ke initiatives - continued y

Strategy / Change	Impact on Performance
New distribution structure worldwide (the key to rapid growth of sales)	• Strategic appointment of new selected distribution agents • Active management of underperforming distribution agents • Termination of non-performing distribution agents • New distribution agents selected based on capacity and proven credentials/track record and financial capability • Upfront distribution fees quarantined to ensure appropriate support and training to be provided by DataDot • Licensing structure to cover IP, R&D, branding and other support • Implemented ongoing performance monitoring and feedback
Management staffing – a leaner business-oriented structure	• Combined Commercial Director, Chief Operating Officer and Chief Executive roles • Combined Financial Controller and CFO roles • New ASX experienced CFO recruited • New company accountant recruited • Restructured finance and admin team – net reduction of two roles
Focus on cost reductions & monitoring	• Continuing to focus on reducing other overheads • Reward cost saving initiatives • Initiated manufacturing efficiency measures – significantly lower staff costs in the medium term

18

DataDot - future i eline & market o ortunities p p pp

Domestic

Focus on building revenues in the following market segments:

• Plant variety rights - seed labelling through AgTechnix Pty. Limited

• New partnership announced with Crime Stoppers Australia

• New partnership with Relegen P/L Announced

• Utilities – theft prevention strategies

• Major retailer initiatives for theft prevention

• Strata managers‟ security initiative

• Vehicle finance initiatives

• Local Government (Brisbane City Council)

• DNA

• Enhancement of the commercial capabilities of the substantial DataBase

• Commercial, industrial and farm equipment protection strategies

19

DataDot - future i eline & market o ortunities p p pp

International

Re-engineer distribution agreements and strengthen international presence:

• Focus on restructuring and terminating existing underperforming territories (no revenue impact)

• Target five to ten new supported and resourced territories per year

• Install new production system (low capital) - significant reduction in labour costs

• Vehicle finance and insurance initiatives – e.g. FGA (Fiat Finance) Italy

• Establishing strategic partnerships with other asset technology providers

20

DataTrace - future i eline & market o ortunities p p pp

Establishing market-segment, distribution agreements to boost sales impact, allowing DataTrace to partner with global authentication solution providers. Initiatives to date include:

• Leading anti counterfeiting solutions in casino chips

• Verify TT – a commercial solution for counterfeit control of textiles, now in final stages of testing for initial client

• AgTechnix JV - a new plant variety rights anti-diversion and identification initiative

• New high security printing solutions

• Final stages of development of a copper/metal/fibre optic cable protection solution

• Developing an initiative in (non-textile) fashion brand protection

• Developing a fast moving consumer goods (FMCG) authentication initiative

• Developing a new digital media anti-counterfeiting initiative

• Developing a presence in the pharmaceutical industry as an anti-counterfeit and authentication solution partner

21

Summar y

• The company has made it through one of the toughest trading periods in recent memory

• After nine months of extensive restructuring and cost reduction, DataDot is now positioned to be a profitable growth-oriented global business

• The new management team is motivated and capable with proven previous track records and has changed the DataDot culture to be a lean, salesfocused, solutions and service driven company with a proven strategy to expand the business

• Exciting new initiatives have the capability to lead the business into a higher growth phase