Applied DNA Sciences, Inc. Announces a Breakthrough in Anti-Counterfeit Chip Technology for Security and Product Authentication.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Jan. 23, 2003

Company launches a new DNA anti-counterfeit (AC) chip in North America 

and Europe that protects against hackers and counterfeiters

Applied DNA Sciences, Inc. (OTCBB:APDN), a provider of proprietary DNA-embedded biotechnology solutions that protect corporate and government intellectual property from counterfeiting and fraud, today announced the North American and European market launch of the new DNA anti-counterfeit (AC) chip. This biotechnology is essential for tagging, encrypting, and protecting confidential information from hackers and counterfeiters.

Applied DNA Sciences, Inc. (ADNAS) uses a patented and proprietary line of DNA-embedded biotechnology products through an exclusive licensing and partnership agreement with its Taiwan-based partner, Biowell Technology Inc. Biowell is the first company to combine DNA biotechnology and micro mechanisms to create a new security and authentication chip.

The DNA anti-counterfeit (AC) chip is a product in which DNA is embedded into a non-silicon based microchip. Proprietary production techniques are used to process DNA for the unique ability to integrate it with microchips. The AC chip also contains a 64K-byte EEPROM that holds any desired information to assist in anything from identity verification to product origin.

The traditional integrated circuit (IC) chip widely used today has not only become vulnerable to hacking in the decoding process, but encryption logic has also been by-passed. The structure of DNA is significantly more complex than electronic signals, and better suited for verification applications. Blank IC chips can be easily purchased in the market and used for counterfeiting and copying. The advantage of using the DNA AC chip is that if it is sabotaged or removed, the chip will cease functioning, thus preventing the data on the chip from being duplicated. The signal of a DNA chip is generated through an interaction between the DNA and a specially devised mechanism known as a DNA chip reader. The DNA chip generates unique signals and will not function properly once removed from the casing.

Combining biotechnology with microelectronics, ADNAS provides potential applications that include a complete card-chip system comprised of a DNA chip and proprietary reader module, providing ironclad security and protection from the most elaborate invasion attempts. In part, the system works by detecting a unique analog signal generated in the chip and converting the signal into a digital code, rendering the chip safe from digital decoding and hacking techniques. The identification data from other sensing methods (fingerprint, voiceprint, palm print, iris print, facial recognition, etc.) can be stored within each individual card. When there is an entry request, the access control system will first validate the DNA chip, and then relay the secondary personal identification data to the system control center to verify the identification of the person. The chip can be utilized in membership cards, ID cards, driver's licenses, bankcards, and other stored-value card applications.

"We are excited about the prospect of introducing the DNA biochip technology to our markets in North America and Europe. This biotechnology breakthrough could play a significant role in the U.S. homeland security, anti-counterfeit and anti-fraud markets," said Larry Lee, president of Applied DNA Sciences, Inc. "The applications for this technology have already generated enormous interest among U.S. airport security developers, nuclear industry safety experts, home entertainment providers, and petroleum chemical executives. We are penetrating these as well as other global markets that demand high security solutions."

About Applied DNA Sciences, Inc. (ADNAS)

Applied DNA Sciences, Inc. (OTCBB:APDN) provides proprietary DNA-embedded biotechnology solutions that confirm authenticity and protect corporate and government agencies from counterfeiting, fraud, piracy, product diversion, and unauthorized intrusion. ADNAS has an exclusive licensing and partnership agreement covering North America and Europe with Biowell Technology, Inc. (http://www.biowell.com.tw/eng/home.htm) of Taiwan. The company provides sales, marketing, and sub-licensing of the DNA products, which are accompanied by monitoring and enforcement support to identify, deter, and apprehend global counterfeiting organizations.

ADNAS' patented technology addresses the more than $350 billion of counterfeit products sold globally each year. Corporations spend approximately $6 billion annually on anti-counterfeit and anti-fraud solutions. DNA tagging provides an extremely high counterfeit barrier, because the unique DNA sequence that identifies a tagged object is virtually impossible for a counterfeiter to replicate. Industries benefiting from ADNAS solutions include: corporations, federal government, information technology, security and surveillance, entertainment, the arts, cosmetics, pharmaceutical and biometrics, and vertical retail markets.

The company is headquartered at 9255 W. Sunset Blvd., Los Angeles, CA 90069; Tel: [phone]DNA (1362); Fax: [phone] or visit www.ADNAS.com.

The statements made by Applied DNA Sciences, Inc. (the company) 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 the company'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 Applied DNA Sciences, Inc. Actual results could differ materially from those projected due to changes in interest rates, market competition, changes in the local and national economies, and various other factors. The company 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.