DATADOT TECHNOLOGY LIMITED — Interim / Quarterly Report 2008

Feb 21, 2008

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DataDot Technology Limited

ABN 54 901 908 726

Stock Exchange Announcement

22 February, 2008

HALF-YEAR REPORT

The Directors of DataDot Technology Ltd (ASX:DDT) provide the following commentary on the half-year report to 31 December 2007.

Performance Highlights

Highlights of the Group’s financial performance, compared to the previous corresponding period, include:

• EBITDA increased from ($864,870) to $571,362 – an improvement of 166%.

• Consolidated net loss was reduced from $1,272,759 to $173,043 – an improvement of 86%.

• Total revenue increased from $5.676 million to $6.614 million – an improvement of 17%.

• Sales revenue increased from $4.905 million to $5.78 million – an improvement of 18%.

This significant turn-around in consolidated performance was driven by improvements across all market sectors.

Australasia

Net profit increased from $566,169 to $1.014 million – an improvement of $447,533 (79%). This was partly attributable to a 5% improvement in the gross profit margin as a result of production and cost efficiencies achieved in 2007.

Product sales increased from $2.605 million to $2.827 million, an improvement of $221,389 (8.5%). Growth was partly attributable to an increase in export sales to Taiwan, which adopted mandatory

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vehicle marking on October 1, 2007, and partly attributable to Yamaha sales for the period commencing October 2006.

South Africa

Product sales increased from $1.449 million to $2.302 million, an improvement of $851,934 (59%) and net profit increased from $316,900 to $683,564 (115%). Sales growth was driven by expansion in the OE market segment and profitability was assisted by a 6% improvement in the gross profit margin as a result of similar production and cost efficiency gains to those achieved in Australasia.

United States

The loss from US operations was reduced from $289,933 to $150,935, an improvement of $138,998 (48%), despite a sales revenue decline of $223,033. This bottom line improvement reflects the benefits of re-structuring undertaken in 2007, which is expected to deliver annual savings of $375,000. The new US management team has recently been strengthened by the appointment of a Sales manager and is now charged with lifting revenue growth and improving the product contribution margin.

United Kingdom

Revenue from the UK increased to $218,707, an improvement of $110,168 (101%), though the result is comparable with the corresponding period last year. The UK management team has recently been strengthened by seconding an experienced sales executive from Australia to assist in achieving sales and revenue growth.

DataTraceDNA Pty Ltd – Joint Venture with CSIRO

DDT’s share of loss from the DataTraceDNA Pty Ltd joint venture was $128,401, an improvement of $229,803 (64%). This improvement related to the recognition by DataTraceDNA Pty Ltd of $484,000 in miscellaneous income.

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

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