DATADOT TECHNOLOGY LIMITED — Investor Presentation 2011

Jul 11, 2011

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Investor Briefings – July 2011

DataDot Technology Limited - Disclaimer

Disclaimer:

This presentation has been prepared by DataDot Technology Limited („DataDot”) based on information available at the time of preparation. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained within this presentation.

To the maximum extent permitted by law, neither DataDot or any member of the DataDot group, their directors, employees or agents, nor any other person accepts any liability for any loss arising from the use of this presentation or its contents or otherwise arising from fault or negligence on the part of their directors, employees or agents.

General Securities Warning:

This presentation is not an offer or invitation for subscription of purchase of or a recommendation of securities. It does not take into account investment objectives, financial situation and particular needs of the investor. Before making an investment in DataDot, the investor or prospective investor should consider whether such an investment is appropriate to their particular investment needs, objectives and financial circumstances and consult an investment advisor if necessary.

All Information including business forward plans in this presentation should not be considered as a recommendation in relation to holding purchasing or selling, securities or other instruments in DataDot. Due care and attention has been used in the preparing this information. However, actual results may vary from projected results and any variation may be materially positive or negative. Forward plans, by their very nature, are subject to uncertainty and contingencies many of which are outside of the control of DataDot.

Past performance is not a reliable indication of future performance.

DataDot Technolo Limited – Overview gy

DataDot Technology Limited (DataDot):

• Australian stock exchange listed in 2005 (ASX:DDT).

• Market capitalisation: ~$16.2 m Issued Capital: 474,575,800 shares

• • Available cash: $3m+ Cash (post growth investment) Negligible debt

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DDT Share Price: Jan09 - Jul11
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DataDot Technolo Limited - five ear strate gy y gy

DDT‟s 2011 strategic objectives are:

1. To grow market capitalisation and shareholder value by increasing:

2. Revenue

3. Profit

4. Share Price

2. To improve quality of earnings by:

• Diversifying product range

• Diversifying revenue base

• Diversifying geographical and customer concentration

Through targeted strategies and actions for

1. Organic growth

1. Strategic growth (acquisitions, partnerships etc.)

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DataDot Technolo - Financial Performance gy

Extract Gordon Capital report (June 2011)

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• Strong balance sheet

• More efficient cost base

• Investment in growth initiatives

• 2011 hit by material one-offs

• 2012 will see return back to pre one-off levels with strong revenue growth possible (“multiple shots on goal”)

• Quality of earnings materially improved

The tar et markets for our technolo ies g g

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Asset Protection Solutions

For motor vehicles, reported car theft in the top 73 countries amounts to 3.6m cars p.a., costing over US$72b annually. Theft reduction opportunities equally exist in the motorcycles/scooter, marine, commercial equipment markets.

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Brand Protection Solutions

US Chamber of Commerce expects that counterfeiting in the USA is expected to grow from US$500 BN to US$2 Trillion in the next 20 years.

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Anti-counterfeiting solutions for seeds

Global seed industry is US$45bn p.a., counterfeiting of seeds ranges from 30% to 65% in developing countries.

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VerifiTT JV with Coats – in tracer thread. Coats has group sales in excess of $1.5bn and views tracer thread as value added service for their customers.

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Large global copper theft problem – in problem countries like South Africa, estimates for metal theft are $832m p.a.; - a large proportion of which is copper cable.

Securing a small percentage of these markets will generate strong growth for DataDot Technology.

Recent Market Focused Develo ments p

• New distributors in China and Brazil now active in building markets.

• DD South Africa – regulations to mandate microdot marking being phased in FY2011/12. Increased productive capacity has involved considerable investment.

• Growing DDT‟s top line – investment in new business development management (BDM) resources in:

• Europe – new BDM,

• North America – 3 new BDMs, stronger relationship with key distributor DataDot Dealer Services,

• China – 5 new sales staff in Shanghai JV‟s office, and

• Australia.

• New Product Development

• DataTrace DNA Reader Development,

• Application of Laser Induced Breakdown Spectroscopy (LIBS) in mining services (ore vs. waste) and building materials.

• International rollout of AgTechnix capability.

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Secure solutions for asset protection, authentication and identification.

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• DataDotDNA[® ] and DataDot Metallic

• DataThreadDNA[TM]

• DataBaseDNA

• assetDNA & baseLINE software

• DD Secure[TM]

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Magnified DataDot

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Actual Size 1mm

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– system: Identification and deterrence results in successful prosecution.

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Identification

Deterrence

Prosecution

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Index of cars stolen and not recovered (per 1000 vehicles)

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2.50
2.253
DataDots fitted to 2.154
Subaru cars in 2.008
2.00 Australia result
in a significant
reduction in the
1.50 incidence of theft .
1.00
0.50
0.290
0.00
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Subaru - Toyota - RAV 4 Nissan - X-Trail Honda - CRV Forester

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Ke Growth Drivers y

Key Growth Drivers for DataDotDNA[®] in Five Year Strategy:

• Aggressively grow microdot product globally

• Package DataDots into innovative solutions for the management of risk in financial and insurance solutions

Problem: Theft and Asset Management

Opportunity:

Asset Protection and Asset Management through use of DataDotDNA[®] for Motor vehicles, Motorcycles, Marine, Plant, Home etc.

Market size:

For motor vehicles, reported car theft in the top 73 countries amounts to 3.59m cars p.a., estimated to be costing over US$72b p.a.

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Key Growth Drivers (continued)

Opportunity in Motor Vehicles

Automotive – Holistic Strategy

1. Auto OEMs pre-fit DataDots – OEM offering includes Theft Excess Rebate (TER). OEMs benefit from reduction in fraud and increase in use of genuine parts.

2. Auto Dealers provide Aftermarket theft warranty and extended service warranty products, underpinned by DataDots, increasing profit margin per vehicle . Warranty products underwritten and insured by external third party.

3. Customer has value add of theft protection, lower insurance premiums, TER and a quality extended warranty product with certainty of warranted parts on car (through DataDots).

Based on successful model of selling DataDotDNA[®] as a risk reduction product in Italy through Fiat and Directline Insurance and in the USA through DataDot Dealer Services (DDDS).

Initially pilot program in Australia for Auto Aftermarket partnering with DDDS to sell extended warranty product and theft warranty product. Once successful will roll out strategy on global basis.

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A leading global solution incorporating technology developed in association with the CSIRO.

• Engineered micro particles with unique tracers,

• Presence and concentration detectable by specially developed portable reader,

• Awarded prestigious DuPont “Innovation Prize” in 2008

• Featured in the Australian Technology Showcase from November 2010 onwards.

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“If terrorism did not exist, counterfeiting would be the most damaging criminal act of the early 21st century. Every year counterfeit products and illegal overruns rob companies & governments of hundreds of billions of dollars and counterfeit drugs & spare parts kill thousands of people.” The World Customs Organisation

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Key Growth Drivers

Key Growth Drivers for DataTrace DNA in Five Year Strategy:

• Develop new products and applications using patents, trade marks and trade secrets to protect intellectual property.

• Aggressively grow DataTrace DNA technology.

Problem: Counterfeiting and Brand Protection

Opportunity:

Authentication through use of DataTraceDNA[®] in polymers, metals, paints, inks, bulk materials, textiles etc.

Market size:

US Chamber of Commerce expects that counterfeiting in the USA is expected to grow from US$500 BN to US$2 Trillion in the next 20 years.

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Our award-winning products

Global seed industry security, coating and seed enhancement

• IntelliSeed[TM,]

• IntelliBright,

• Seedworx, SeedXcell, Seed enhancement products,

• IntelliGlow,

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• IntelliLabel, and

• baseLINE[TM] .

Global seed industry is US$38bn p.a., counterfeiting of seeds ranges from 30% to 65% in developing countries.

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Key Growth Drivers

Key Growth Drivers for AgTechnix in Five Year Strategy:

• Expand the growth of AgTechnix business.

Problem:

Counterfeiting

Opportunity:

• Authentication through use of IntelliSeed™ and IntelliLabel in conjunction with seed coating and seed enhancement products.

• Polymer Seed Coating material sales

• „On-seed‟ enhancement technologies

Market size:

Global seed industry is US$38bn p.a., counterfeiting of seeds ranges from 30% to 65% in developing countries.

Estimated market of „on-seed‟ technologies is ~ US$1 - 3 billion p.a.

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Key Growth Drivers (cont.)

Opportunity in Seed Coating Materials

• Market size of polymer seed coating materials in India estimated at 1,000 tonnes p.a.

• Market for polymer seed coating materials growing at greater than 30% annually over past 3 years.

• Market opportunity is currently ~US$12.5 million p.a.

• Two market leaders estimated to have 80% market share (US$10 million p.a.)

• Opportunity to replace market leaders with AgTechnix next generation polymer seed coating materials either stand-alone or as part of complete authentication solution.

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DataDot Technology - Recent R&D Initiatives

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Project “Thor”

DataDots made from new materials including stainless steel, polymers, metals, and heat resistant materials for specific environments such as extreme heat, cold, high salt, high UV, consumable. Have completed proof-of-concept for the production of next generation DataDots from multiple material types.

Beacon Dot Protection System

DDT has lodged patents and completed the production system enabling it to deploy the new Beacon Dot protection system. The system provides law enforcement with a special electronic locator to easily find and identify a DataDot.

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DataDot Technology - Recent R&D Initiatives

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(continued)

Mirror Image DataDots

This development was deployed into the European market in May 2011. As half of all DataDots may be face-down on application, inclusion of a mirror image of each line of data allows the DataDot to be more easily read by Police.

DataDot silicone tip pen applicator

The development of a new click-activated hand-held DataDot applicator (to be sold in retail markets outside Australia) will be rolled out mid-August 2011. The functionality of the applicator allows more user-friendly application of DataDotDNA[®] to home and small business valuables.

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DataDot Technology - Recent R&D Initiatives

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TraceCoat[TM]

TraceCoat[TM] allows metal, glass and various other materials to be coated using a chemical coating (electro-less nickel) process. In partnership with Surface Technology Inc. DataTrace is working with a number of prospective clients trialling this product, initially for authentication of metal components used in the fashion industry. TraceCoat[TM] also offers the ability to mark high-value industrial, automotive and airline parts to improve safety, reduce false warranty claims and authenticate a manufacturer‟s genuine parts.

DataTrace Single DataTraceDNA[®] code reader – the “C1”

DataTrace has developed a new reader designed for field-force detection of single DataTraceDNA[®] codes. This is a more affordable, highly secure, single code reader that replaces the single code reading function performed by the current multi-code reader, “The Authenticator”.

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DataDot Technology - Recent R&D Initiatives

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(continued)

AuthentiCable[TM]

AuthentiCable[TM] – the anti-theft cable product for copper and aluminium cables will soon be able to be manufactured in DDT‟s Taiwan factory. The AuthentiCable[TM] product has been enhanced by including an alpha-numeric code on the cable. This combination provides multiple layers of security to protect valuable cables.

Development of new DataTraceDNA[®] codes

DataTrace has discovered new DataTraceDNA[®] codes, adding to the existing library of DataTraceDNA[®] codes and thus giving DataTrace customers a wider range of codes for use in authentication.

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DataDot Technology - Recent R&D Initiatives

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IntelliLabel[TM]

IntelliLabels[TM] are a self-adhesive UV resistant label that combines a unique serial number (linked to DDT‟s database) printed onto anti-tamper/tamper evident labels with the added security of DataTraceDNA[®] embedded in the Label. This creates a label that has multiple layers of security to defeat would-be package counterfeiters.

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DataDot Technolo - Awards & Reco nition gy g

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• NAB Agribusiness Award for Excellence – Technology & Innovation Award (2010)

• DuPont Innovation Award – Agriculture & Food Production (2010/11)

• Presenter at Danforth Innovation Centre,St. Louis, USA (May 2011)

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• Featured in Australian Technology Showcase

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