DATADOT TECHNOLOGY LIMITED — Capital/Financing Update 2011

Apr 28, 2011

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DataDot Technology Limited ABN 54 091 908 726

Securities Exchange Announcement

29[th] April 2011

Market Update: Impact of Japanese Earthquake/Tsunami

The Directors of DataDot Technology Limited (ASX:DDT) announce that revenue for the year to 30th June 2011 is likely to be in the range of 20% to 30% lower than the $10 million achieved in FY 2010. Earnings will be impacted by this reduction in revenue.

The earthquake and tsunami that devastated northern Japan in March has caused serious supply chain disruptions to Japanese and other motor vehicle manufacturers’ production. As a result, production of finished vehicles have been substantially reduced and in some cases temporarily suspended. This has contributed to lower sales of DataDotDNA[®] to vehicle distributors globally.

In Europe, softness in automotive sales in the first half of the financial year has persisted into the current quarter. This is expected to compound the decline in total revenues in the second half. The appreciation of the Australian dollar has exacerbated this negative impact.

Over the longer term, Directors expect that many of the sales delayed by the effects of the Japanese earthquake and tsunami and European market softness will be recovered in FY2011/12.

DDT is managing its manufacturing costs to contain the impact of reduced production levels.

DDT’s financial position remains strong. Although there has been substantial capital invested in new technologies and enhancements to manufacturing as well as investments in business development, at the end of March 2011 the company has cash reserves of over $4 million.

Total expenses are in line with the prior year despite inclusion in the current year of 100% of DataTrace DNA Pty Limited (DataTrace) expenses from 1[st] December 2010 onwards and expenses of the new subsidiary AgTechnix Pty Limited (AgTechnix). On a like for like basis, year to date expenses are 10% lower than the corresponding period.

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Within these contained expenses are the transaction costs incurred in acquiring the CSIRO’s half-share of DataTrace, as well as investments in growing the business in the following areas:

• the appointment of additional business development personnel in key expansion markets;

• expanded productive capacity in South Africa;

• Project Thor (the new multi substrate DataDotDNA[®] ), Beacon Dot (the new DataDotDNA[®] location technology) and AuthentiCable[TM] manufacturing and the DataTrace C1 model reader; and

• increased depreciation resulting from capital deployed in these investments.

The impact of the Japanese earthquake and tsunami on DDT revenues is expected to be short term, and despite this setback, Directors are confident that the strategy outlined at the 2010 Annual General Meeting remains on track. Diversifying away from the volatile automotive industry and the implicit associated concentration risk will continue to improve the quality of DDT revenue and earnings.

Evidence of this diversification strategy is shown in DDT’s pipeline that continues to build, pointing to a stronger result in FY2011/12 with excellent long term growth prospects. Specifically:

• AgTechnix, the joint venture company formed with Ipeco Pty Ltd, has achieved initial sales of IntelliSeed[TM] and its diverse range of advanced polymer seed coating and enhancement products into markets including Australia, India and China. These sales are expected to continue to improve in FY2011/12. AgTechnix intends to set up operations in India in FY2011/12;

• Laser Induced Breakdown Spectroscopy (LIBS) authentication technology continues to be enhanced, now moving beyond proof of concept stages, in funded R&D projects with large corporate clients. These exciting opportunities are in:

• a) mining services, for the identification of ore versus waste; and

• b) building materials, for life-cycle management, quality control and identification;

• DDT is continuing to enhance its value proposition through the development of new opportunities for the sales of DataDotDNA[®] based anti-theft solutions. These solutions are typically provided in combination with products and technologies from other providers;

• Following a successful pilot, Club Marine Insurance has commenced the Australia-wide rollout of DataDotDNA[®] and Club Marine insurance products offered via its expanded platform of outlets;

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• DDT’s licensee, DataDot Technology South Africa (DDSA), has secured additional OEM customers for “Whole of Vehicle Marking” utilising DataDotDNA[®] . DDT expect that royalties payable to DDT arising from these sales will be significantly greater in FY2011/12;

• DataDot USA (DDUSA), a wholly owned subsidiary of DDT, is continuing to increase its sales through direct and distribution channels. DDT is confident that DDUSA will be close to breakeven in this financial year even after accounting for significant investment in business development. DDUSA is expected to start making an increased contribution to group profits in FY2011/12 and beyond;

• TraceCoat[TM] , the metal, glass and plastic coating product announced in January 2011, combining DataTrace and Surface Technology Inc.’s technologies, is under evaluation by a major customer for proof of concept;

• DataTrace is working with three large global customers on anti-counterfeit/ brand protection pilot programs, although some of these have had a delay on implementation due to the impact of the Japanese earthquake and tsunami; and

• Manufacturing capacity for AuthentiCable[TM] (the anti-theft product for copper and aluminium cable) is being enhanced to enable production-scale trials to commence with cable manufacturing companies in South Africa and North America.

The Directors will release the company’s full year results in August 2011.

Contact Information:

DataDot Technology Limited

Ben Bootle, CEO Phone: +61 (02) 8977 4900 e-mail: info@datadotdna.com web site: www.datadotdna.com