DATADOT TECHNOLOGY LIMITED — Capital/Financing Update 2008

Sep 17, 2008

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DataDot Technology Limited

ABN 54 901 908 726

Stock Exchange Announcement

18 September, 2008

Launch of Verifi TT

DataDot Technology Limited (ASX:DDT) is pleased to announce that DataTraceDNA Pty Ltd, the joint venture company owned by DDT and CSIRO, has entered into a Supply Agreement with AgResearch, New Zealand’s largest Crown Research Institute.

Under the Agreement DataTraceDNA Pty Ltd will supply DataTraceDNA to AgResearch for inclusion in a new and unique identifying fibre,Verifi TT, that will target the illicit international market in textile fraud and label counterfeiting. AgResearch will supply Verifi TT world-wide to third parties for use and application in textiles and textile products. The form of supply by AgResearch will be in loose fibre, fibre fragments, continuous filament and spun yarns, and ink for application to printed textile labels.

Mr Ian Allen, CEO of DDT, said that the Agreement delivers in line with the previously announced DataTraceDNA business strategy. “We create the technology and then partner with a leading international company to develop and distribute a specific industry solution world-wide. DataDot Technology and CSIRO have developed the unique DataTraceDNA marker and scanner technology and AgResearch has developed a process to evenly blend the unique marker into textiles. The combined result, Verifi TT, will enable unique identifying fibres to be woven into textiles and detected immediately, with a simple hand-held device”.

Dr Peter Ingham, Manager of Textile Science and Technology at AgResearch, said that Verifi TT will be used to detect the substitution of high quality for low quality textiles in finished products and to detect over-runs and counterfeit items that fraudulently use major brand labels. “The counterfeit

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textile and label market is worth hundreds of millions of dollars a year. Now it will be possible to verify the genuine article at any stage of the production and supply process”. Dr Ingham said that the launch market for Verifi TT is China, where a large textile maker will be using it to stop illegal textile substitution. Another early adopter is a yarn maker who claims that 80% of the refund claims it is settling over quality are caused by illegal materials substitution. Sales discussions have also begun with US law enforcement agencies that send high-quality, tender-specific material offshore for uniform manufacture and suspect it is being substituted with lower quality material.

About DataTraceDNA

DataTraceDNA is a joint venture partnership of the CSIRO and DataDot Technology. The Company offers a groundbreaking approach to counterfeit security protection through nanotechnology that is invisibly embedded within the molecular structure of a manufactured product. DataDot Technology Ltd is listed on the Australian Stock Exchange under the code ‘DDT’. The Commonwealth Scientific and Industrial Research Organisation (CSIRO) is backed by the Australian government, is one of the top ranked research institutions in the world and is a leader in the rapidly growing field of nanotechnology. The technologies are supported by our worldwide verification database.

About DataDot Technology

DataDot Technology is a global leader in the development of asset-based product identification and authentication, having developed four leading-edge identification technologies that allow assets and their component parts to be uniquely marked and identified. It's akin to creating a unique asset-based DNA for products. DataDot Technology's asset identification technologies have wide product application, and the potential to penetrate global markets in the automotive, marine, clothing and industrial materials sectors. Our technologies are supported by our worldwide verification database.

DataDot technologies have gained acceptance in a number of countries around the world, and are currently represented in Australia, Bangladesh, Canada, China, Hong Kong, India, Indonesia, Lithuania, Malaysia, Malta, Mexico, the Netherlands, New Zealand, Norway, Pakistan, Poland, Russia, South Africa, Sri Lanka, Sweden, Taiwan, Thailand, the United Kingdom and the United States of America.

For more information contact:

Mr Ian Allen

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Chief Executive Officer DataDot Technology Limited Phone: +612 9975 4777 Fax: +612 9975 4700 Web: www.datadotdna.com

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