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DATADOT TECHNOLOGY LIMITED Regulatory Filings 2011

Jun 30, 2011

64764_rns_2011-06-30_174f05c3-8f0f-4561-823a-59d04e50cb2e.pdf

Regulatory Filings

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DataDot Technology Limited ABN 54 091 908 726

Securities Exchange Announcement

1[st] July 2011

Product Innovation and Technological Enhancements

The Directors of DataDot Technology Limited (ASX:DDT) advise on innovation and technological enhancements flowing from continued targeted investment in research and development on DataDot product. These enhancements are central to the company’s strategy of diversifying products and services offered to customers and improving the underlying quality of earnings in its revenue mix. The enhancements and developments are outlined below: -

Within the DataDot Technology Limited (DDT) product range:

The DDT product range caters to asset identification markets, the largest of which is the automotive sector where DDT’s flagship product, DataDotDNA[®] is used as a world leading anti-theft and anti-counterfeit solution. Enhancements in the product line noted below expand the markets (both geographically and by customer) where DDT offers these solutions:

Project Thor – next generation DataDots

Project Thor, announced at the AGM in 2010, has completed proof-of-concept for the production of next generation DataDots from multiple material types. The ability to select from a range of material types for DataDots is an important enhancement as it allows more customised applications for clients. One of the materials now available is stainless steel substrate DataDots with the capability to carry a 17 digit alpha numeric Vehicle Identification Number (VIN code).

Commercial scale production of new Thor DataDots will commence in Q1 2011/12. This product development will enable DataDots to be deployed in extreme heat and other challenging environmental conditions such as highly abrasive or saline environments that are currently unsuitable for polymer and nickel DataDots.

Beacon DataDot System

DDT has lodged patents and completed the production system enabling it to deploy the new Beacon DataDot asset protection system. The system employs an additional covert security layer that enables the DataDot to emit a beacon that is detectable using a small hand-held device that will be made available to Police so as to facilitate detection of the dots. The first Beacon DataDots will be commercially available from our Taiwan factory from a mid-to late September 2011 target.

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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 Dry-pod system

The development of the DataDot dry-pod system has been deployed with customers for the past year and significantly extends the shelf-stability of the traditional DataDot system. This is particularly targeted to customers where longevity of shelf-life is an important consideration in high humidity and/or constant high temperature environments.

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[TM] to home and small business valuables. The DataDot silicone tip pen applicator has been modelled on the earlier development of a DataTrace pen which has been on the market and used by selected high security clients since 2008. The new silicone tip application head gives much better flow control and cleaner application characteristics.

Within the DataTraceDNA Pty Limited (DataTrace) product range:

The DataTrace product range caters to authentication, verification and anticounterfeit markets, of which the largest is the brand protection sector where counterfeit consumer goods erode the margins and returns from investment in development of genuine goods and services.

DataTrace’s flagship product, DataTraceDNA[TM] is an invisible microscopic tracer particle that can be deployed into or onto goods to verify, via a hand-held reader, the authenticity of the item. Enhancements in the product line, application techniques and reader technology explained below expand the market in which DDT can offer these solutions:

TraceCoat[TM]

TraceCoat[TM] is the trade-marked product name for the technology produced through the Surface Technology Inc. and DataTrace joint manufacturing agreement announced in January 2011.

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.

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

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

Development of the “C1” reader further enhances the value proposition of DataTraceDNA[TM] . The “C1” detection device will service a niche market for clients needing higher numbers of authenticators in their manufacturing, warehousing and distribution systems. The reader will be deployed as an integral part of a wider service solution offered by DDT to provide detection and field authentication/policing solutions to brand owners.

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. AuthentiCable[TM] and assetDNA[1] in combination allow individual cables to be identified in the assetDNA[TM] database in three dimensions (latitude, longitude and altitude) in a customer’s electrical distribution network. This allows identified stolen cables to be replaced in the electricity utility’s network with minimum down-time, resulting in a much safer, more reliable and more efficient electricity infrastructure.

Development of new DataTraceDNA[TM] codes

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

Within the AgTechnix Pty Ltd (AgTechnix) product range:

The AgTechnix product range includes the multi-award winning patent-pending product IntelliSeed[TM] , micro nutrients and advanced new-generation seed coating polymers. IntelliSeed[TM] is the commercialised combination ofDataTraceDNA[TM] , DataDotDNA[®] and advanced polymers giving protection to seed intellectual property, preventing counterfeiting of seed, saving IP owners from false warranty and other fraudulent claims. AgTechnix is pleased to add to this “on-seed” protection of seeds an on-bag/packet anti-counterfeit protection, called IntelliLabel[TM] . Initial customers in Australia, India and China are continuing to use IntelliSeed[TM] to protect their intellectual property and enhance farmer’s returns from their investment in genuine production enhancing IP development.

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IntelliLabel[TM]

IntelliLabels[TM] are a self- a dhesive UV resistant label that combines a unique serial number (linked to D DT’s database) printed onto anti-tamper/tamper evident labels with the added security of DataTraceDNA[TM] embedde d in the Label. This creates a label that has multiple layers of security to def e at wouldbe package counterfeiter s . IntelliLabels[TM] are being trialled with cus t omers in India in the 2012 seed pr o duction season. The IntelliLabels[TM] are al s o available through DDT for non-agri c ultural package protection, targeted at fas t -moving consumer goods and the fashion industry.

Other Developments – Recognition for Technological Developments – Awards:

  • NAB Agribusiness Award for Product Innovation (2010) – AgTechnix - IntelliSeed[TM] ,

  • Australian Technology S h owcase – DataTrace – DataTraceDNA[TM] w as selected to be included in the Aus t ralian Technology Showcase,

  • DuPont Australia and Ne w Zealand Innovation Awards 2010/11 in th e category of Agriculture and Food P roduction - IntelliSeed[TM] by AgTechnix, an d

  • AgTechnix was selected t o present at the Donald Danforth Plant Sci e nce Centre, St. Louis Mo, US A at the Ag Innovation Showcase for innov a tions and commercial breakthroug h s (May 2011).

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  • DDT will continue to enhanc e and develop products to meet client speci f ic needs for asset identification, authentic a tion, protection and management. 1. assetDNA[TM] is a trademark owned by our Australian solutions partner Rel e gen Pty Ltd. assetDNA is a globally uniqu e number assigned and managed as an asset with a ttributes in the baseLINE asset management software. See Relegen’s web-site for details www.relegen.com.

Contact Information:

DataDot Technology Limited

Ben Bootle, CEO Phone: +61 (02) 8977 490 0 e-mail: [email protected] o m web site: www.datadotdna.c o m