DATADOT TECHNOLOGY LIMITED — Interim / Quarterly Report 2011

Feb 17, 2011

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DataDot Technology Limited ABN 54 091 908 726

Securities Exchange Announcement

18[th] February 2011

- Half Year Results

The Directors of DataDot Technology Limited (ASX:DDT) report that total revenues for the six months to 31 December 2010 were $4,137,264, a decrease of 18.7% from the same period in 2009. Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) for the same period were $677,621, a decrease of 15.7% compared with the prior year. Consolidated net profit from continuing operations after income tax for the half-year was $481,530 (2009: $632,300). These results include a one-time favourable adjustment of $552,134 for the revaluation of DataDot’s investment in DataTraceDNA Pty Limited (DataTrace).

The operating result was primarily affected by weak automotive markets in Europe. These conditions have been apparent for some time and shareholders were forewarned at the company’s AGM held in November 2010 of the likely impact on the first half results.

Partially offsetting the downturn in these markets was a substantial increase in revenues and a markedly reduced loss from the Americas following the appointment of distributors in Argentina, Brazil and Chile and maiden revenues from AgTechnix. DataTrace also contributed significant revenues and profit contribution in December following the company’s acquisition of the 50% shareholding previously owned by the CSIRO.

Although operating cash flows were markedly lower in the December 2010 half year compared with the December 2009 half year, they remained positive. As at 31 December 2010, cash balances held by the company amounted to $5.2 million.

Mr Ben Bootle, CEO of DataDot commented:

“The automotive industry is the company’s core market and it continues to suffer from weak demand in key markets around the world, particularly in Europe. However, as we detailed at last year’s AGM, the company is seeking to broaden its revenue base and important initiatives have been implemented that will drive growth in other markets”.

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The most significant initiative undertaken in the current financial year has been gaining full control of DataTrace. The company has also achieved considerable advances in the development and commercialisation of market leading verification technologies for agricultural and horticultural seeds, textiles, cables and pharmaceuticals.

On 14 October 2010, the company announced it would acquire the CSIRO’s 50% shareholding in DataTraceDNA Pty Ltd, which has now become a wholly owned subsidiary of DataDot Technology. DataDot also acquired the complete Intellectual Property of DataTrace, which included access to markets previously unavailable under the terms of the CSIRO/DataTrace licence. The total consideration given was in the form of ordinary shares with a value of $1.38 million. The CSIRO is now a substantial shareholder, with a 7% holding, in DataDot Technology Limited. This transaction will streamline the management and strategic direction of DataTrace. DataDot will now be entitled to all DataTrace’s income having already been fully responsible for all its costs. This initiative is strategically important as the technology underpins many of the products that we have been developing and full ownership of DataTrace gives the company access to markets from which it was previously excluded, notably security related markets such as defence, passports and currency.

Despite weak conditions in the European automotive industry, the company continues to build market acceptance with new agreements with Robert Bosch in Italy, carsales.com.au and pilot programs with Allianz’s Club Marine insurance brand in Australia and with securing new OEM accounts in South America and South Africa. A joint venture is in the process of being established with our distributor in Taiwan as a vehicle for entry into the potentially vast Chinese market.

The company’s financial position is strong. Cash reserves exceeding $5 million ensure funding is in place to support the further development and commercialisation of new products and markets that will be key contributors to medium and long term growth, and to reduce concentration risk.

Mr Bootle added:

“We expect that European automotive markets will strengthen and various growth initiatives will start to take hold. We have confidence in the company’s future where our technology and products will be providing security and brand protection in many high value product markets around the world”.

Contact Information:

DataDot Technology Limited

Ben Bootle, CEO Phone: +61 (2) 8977 4900 e-mail: info@datadotdna.com web site: www.datadotdna.com

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