U.S. Military Threatened by Counterfeit Microchips

Applied DNA Ramps Up Solution

STONY BROOK, NY--(Marketwire - September 15, 2010) - Applied DNA Sciences, Inc. (OTCBB: APDN), a provider of DNA-based security solutions, announced that it has developed a technology utilizing botanical DNA to forensically ID microelectronics as a weapon to foil counterfeiters. As a Department of Energy vetted technology, Applied DNA's marks offer a breakthrough solution to the "growing deluge of millions of counterfeit chips posing peril to the U.S. military and the general public."

On September 9, 2010, Homeland Security Newswire published an article "Fake chips from China threaten U.S. military systems" [http://homelandsecuritynewswire.com/fake-chips-china-threaten-us-military-systems] in which a U.S. Chamber of Commerce estimate finds that the global market for counterfeit electronics may be as large as $10 billion. While these references include daunting statistics, the underlying problem has not changed because there is no satisfactory technological solution. Currently, the ways to detect counterfeits are:

  1. Paperwork Review
  2. Visual Inspection
  3. Reliability Testing

These methodologies are inadequate: paperwork is often fraudulent as it is in the promulgation of fake drugs; visual inspection is superficial and lacks the resolution necessary to unveil a good counterfeit; reliability testing is expensive and demanding, and could never keep up with demand. For these reasons, APDN has been aggressively escalating the development of DNA markers that can forensically protect all electronic components -- semiconductors, microchips, printed circuit boards (PCBs), resistors, capacitors, routers, etc.

DNA-marking protects the consumer, the government, our service men and women. The manufacturers can ensure that only properly screened, original product goes to users. The same DNA marking can then protect the manufacturers themselves in the form of returned product which they must replace or repair. Broadly applicable, DNA marking could be disseminated as industry best practices and military standards.

APDN's President and CEO, Dr. James Hayward, has presented DNA-marking as a solution at several national meetings attended by industry and the military. On August 30, 2010, Dr. Hayward spoke at the IMAPS (International Microelectronics and Packaging Society) High-Reliability Microelectronics for Military Applications Conference in Bethesda, MD. Intense audience interest provoked follow-up meetings to demonstrate how the DNA marks can offer unparalleled solutions for government agencies and original component manufacturers.

"The military and circuit integrators can not be blamed for the poisoning of supply chains when chip manufacture is available in abundance by countries intent on stealing IP and riding the coattails of other's marketing investments. But DNA is an opportunity to draw a line in the sand, to stop the progress of this problem today," proclaimed Dr. Hayward.

About APDN
APDN sells patented DNA security solutions to protect products, brands and intellectual property from counterfeiting and diversion. SigNature DNA is a botanical mark used to authenticate products in a unique manner that essentially cannot be copied, and provide a forensic chain of evidence that can be used to prosecute perpetrators. To learn more, go to www.adnas.com where APDN routinely posts all press releases.

The statements made by APDN may be forward-looking in nature and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe APDN's future plans, projections, strategies and expectations, and are based on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of APDN. Actual results could differ materially from those projected due to our short operating history, limited financial resources, limited market acceptance, market competition and various other factors detailed from time to time in APDN's SEC reports and filings, including our Annual Report on Form 10-K, filed on December 23, 2009 and our subsequent quarterly reports on Form 10-Q. APDN undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date hereof to reflect the occurrence of unanticipated events.

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Janice Meraglia
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