DATADOT TECHNOLOGY LIMITED — Capital/Financing Update 2010

Nov 30, 2010

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DataDot Technology Limited ABN 54 091 908 726

Securities Exchange Announcement

1[st] December 2010

Acquisition of CSIRO Interest in DataTraceDNA

The Directors of DataDot Technology Limited (ASX:DDT) are pleased to announce that the acquisition of the Commonwealth Scientific and Industrial Research Organisation’s (CSIRO) interest in DataTraceDNA Pty Limited (“DataTrace”) completed on December 1, 2010. In addition, CSIRO has assigned the intellectual property in the DataTrace technology to DataTrace.

Details of the transaction are:

• DDT has acquired CSIRO’s share in DataTrace. As a result DDT now owns all of the shares in DataTrace. The agreed value of the interest, based on an independent valuation, was $1 million.

The consideration for the share acquisition was given in the form of ordinary shares in DDT valued at $0.041 per share, which was an agreed value based on the volume weighted average share price of DDT’s shares over the six months to 31 August 2010. This equates to 24,390,244 ordinary shares.

• CSIRO has assigned the DataTrace intellectual property to DataTrace, opening up access to the currency, security & identity documents, and national security markets that were previously inaccessible to DataTrace under the CSIRO-DataTrace licensing arrangements. This component of the transaction had the agreed value of $395,015.

Consideration was made on the same valuation basis and given in the form of 9,634,523 ordinary shares in the Company.

The transaction was subject to shareholder approval at DDT’s Annual General Meeting, held on 26[th] November 2010. DDT has issued to CSIRO a total of 8.93% of DDT’s issued share capital on a fully diluted basis (post this transaction). This values the combined transaction at $1,382,451.[1 ]

The DDT shares acquired by CSIRO are subject to a voluntary escrow for 6 months.

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Mr Ben Bootle, CEO of DDT, stated that the acquisition of the DataTrace intellectual property, and the DataTrace business half share, was an important strategic milestone in the evolution of DDT and DataTrace enabling the combined companies to diversify their product offering away from being seated in the legacy business of asset identification to being able to offer a full range of products and services in the asset identification, authentication and anti-counterfeit markets globally.

A table summarising the transaction is presented below:

				Relative
Purchase	Number of	VWAP	Valuation	Capitalisation
Description	shares	price	(A$)	(% of total)
		($/share)
Shares in	24,390,244	0.041	1,000,000	6.46
DataTraceDNA JV
Assignment of	9,634,523	0.041	395,015	2.55
Intellectual Property
Half-share of Cost of	(306,440)	0.041	(12,564)	(0.08)
Independent
Valuation
TOTAL	33,718,327	0.041	1,382,451	8.93

Footnote:

1. CSIRO agreed to pay half the cost of an independent valuation of the share, being an amount of $12,564 which was deducted from the consideration.

Contact Information:

DataDot Technology Limited

Ben Bootle, CEO Phone: +61 (02) 89774900 e-mail: info@datadotdna.com web site: www.datadotdna.com