APDN Applied DNA Sciences Inc

Applied DNA Sciences, Inc. (OTCBB: APDN), (Twitter: @APDN), a provider of DNA-based anti-counterfeiting technology and product authentication solutions, announced today that its SigNature DNA mark has been used to protect nearly 500,000 electronics parts in the combined outcome of its pilots and contracts, an effort driven by the U.S. Defense Logistics Agency ("DLA") against the infiltration of counterfeit electronic parts. Seventeen companies are actively marking microcircuits with SigNature DNA, a requirement set out by DLA for companies providing a class of microcircuits to the Agency. Overall, fifty-one companies are signed or in various stages of negotiation.

Company officials pointed out that the rate of new contract signings had increased significantly; of the companies actively using SigNature DNA marking, 35% had signed on in the last two months. As Dr. James A. Hayward, CEO and President of Applied DNA Sciences wrote in the July issue of Military and Aerospace Electronics, customers now include both authorized distributors and manufacturers, including the first two companies known as "QMLs," meaning that they are included on DLA's highly selective Qualified Manufacturers List.

APDN officials also pointed to other signs of momentum in the effort:

• In a June 20 updated FAQ, DLA eased and formalized the subsidy that participating customers receive from DLA for using the APDN SigNature DNA platform. DLA will issue reimbursement to its trusted sources using a basic ordering agreement (BOA). In order to be considered for reimbursement, the trusted source must obtain a BOA by replying to solicitation number SPM7MX-13R-0095.
• The FAQ reiterated information published earlier, including the announcement that certain "open contracts" with its suppliers could be modified or even canceled and reissued with the SigNature DNA requirement: "Open contracts judged to have the potential for significant future product deliveries or risk are likely to be modified, or possibly canceled in order to issue a new solicitation with the DNA marking requirement."

"We believe the impact of the current DLA requirement for SigNature DNA might be wider than some people think," commented Janice Meraglia, Vice President for Military and Government Programs, pointing out that "this includes prime contractors who sell directly to DLA."

The company has been gearing up for the growth in its electronics sector and other businesses, increasing its staff by 72% since the beginning of the year, and moving into new quarters almost four times the size of its former space. A "Technology Roadmap," issued by the firm, charts its plans for deployment of technology capable of higher volume, integration into laser etching and other production processes, and adding new layers of security.

"Our technology plans will allow us to accommodate every production process into the future," commented Dr. Hayward. "We are firm believers in continual improvement, which we believe will allow us to grow and consistently reach higher levels of excellence and reliability."

About Applied DNA Sciences

APDN is a provider of botanical-DNA based security and authentication solutions that can help protect products, brands and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion. SigNature® DNA and smartDNA, our principal anti-counterfeiting and product authentication solutions that essentially cannot be copied, provide a forensic chain of evidence and can be used to prevent crime.

The statements made by APDN may be forward-looking in nature. 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 20, 2012 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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