Managing Director's update - DataDot Technology

Managing
Director’s
update
2010 has seen significant and positive developments in DataDot's
operational performance, strategy, governance and shareholder
base, all contributing to a stronger platform on which to build our
future revenues.
Future Direction
The Board and management conducted a thorough review of
strategy from which emerged revenue growth and diversification
targets for the next five years. The fundamental strategic imperative
is to grow the top line and develop diversified revenue streams
at an even faster rate than growth in our traditional vehicle market.
The three strategies identified to accomplish these targets are:
1. Establish partnerships with other stakeholders, especially
insurers, in our key auto, marine, plant and equipment
markets in order to enhance the value of the DataDot
proposition to manufacturers, distributors, dealers and owners.
2. Establish strategic partnerships where the intellectual property
contributed by both parties can be used to provide innovative
and profitable solutions to the issues of product identification
and authentication in other markets.
3. Increase investment in strategic growth opportunities.
Initiatives
• We entered into an agreement with Carsales.com Limited.
Carsales.com will promote and sell DataDot marking into the
vehicle, motorcycle, bicycle, boat, truck, agricultural and
construction machinery and real estate markets on the
carsales.com website and through its several thousand
affiliated dealerships.
• We are forming a joint venture company with DataDot
Technology Taiwan that will be granted licences by both
DataDot and DataTrace DNA to commercialise their IP in
nominated markets in China.
• We have established a partnership with Crime Stoppers USA
to launch the DataDot copper cable theft prevention program
across US utility companies.
• Our overseas core vehicle business has grown with the addition
of four OE vehicle accounts:-
• Subaru Chile
• Mercedes Benz South Africa
• Renault South Africa
• Suzuki South Africa
These collectively account for more than 50,000 vehicles a year.
2011 is shaping up as a very exciting year for our company and
shareholders.
CONTENTS
Managing Director's update............................................................... 1
DataDot Update................................................................................... 2
DataTrace DNA Update....................................................................... 4
OEM Update......................................................................................... 6
AgTechnix Update................................................................................ 8
Appendix A - ASX announcements............................................... 10
Appendix B - Why DataDot Technology is ahead of the rest..... 11
1
DATADOT YEAR IN REVIEW 2010

GREG GOTHARD
General Manager
Business Development
E ggothard@datadotdna.com
Waste Tracker to help keep Australia
beautiful
Waste tracker is a chain-of-custody solution that identifies waste
in the demolition process with DataDotDNA ® .
How the program works
A demolition or waste site is registered online and allocated a
unique DataDot ID. The site is sprayed with 16000+ dots, 50% applied
with a visible blue adhesive and 50% with a clear, invisible
adhesive.
A win for the environment and councils
nationally.
The program not only promotes our product and its benefits but
will assist councils in the control of illegal dumping of waste,
particularly asbestos.
Waste “dumpers” will be deterred as illegal dumping will be easily
tracked to its origin, with DataDotDNA ® providing evidence that
councils can use to secure convictions.
While the individual dwelling cost is negligible, nationally this
will save councils millions of dollars in illegally dumped waste
remediation.
It’s a win-win result.
Bursting the Paslode theft bubble
Paslode is the leading manufacturer of the cordless pneumatic
nail guns preferred by professional trades people. Nail guns are
big-ticket items, retailing between $700 to $1000.
Paslode introduced DataDotDNA ® to add value to the end customer
and to assist retailers in the recovery of product that had been
stolen.
Before being delivered to retail outlets, each nail gun has hundreds
of DataDots applied in strategic locations by a trained DataDot applicator.
Once purchased, the customer registers the DataDot PIN
on the Paslode website thereby activating the DataDot in the global
database.
This program has been running for over 12 months and has been
a resounding success for Paslode with a significant increase in
product registrations in addition to increased sales for the retailer.
Crime Stoppers and DataDot building
a strong relationship
DataDot Technology recently re-signed for a further three years
the agreement with Crime Stoppers Australia as crime prevention
partners. Together, DataDot and Crime Stoppers Australia develop
crime prevention programs that include our copper, bicycle and
marine theft prevention programs.
Fighting a copper wire theft epidemic
Our copper theft prevention program has been running in Victoria
and New South Wales for the past two-and-a-half years and has
produced a 78% reduction in copper wire theft. We are now taking
our highly successful program into Queensland.
We’ve also signed an agreement with Crime Stoppers USA to
launch our copper wire theft prevention program - an Australian
company leading the way in new technology to help prevent theft.
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DATADOT YEAR IN REVIEW 2010

New rural property theft prevention program
Rural property theft is a highly lucrative industry and farmers are
losing valuable equipment, vehicles and materials from their
properties at an extraordinarily high rate.
In partnership with Crime Stoppers we are currently developing
our rural property theft prevention program to be launched in 2011.
Taking our technology to the world
We are also developing programs with Crime Stoppers
International through our worldwide distributor network to
address theft trends in each region.
Relegen and DataDot Technology
market "assetDNA"
Australian Customs takes control
By tagging all their weapons and equipment with assetDNA,
Australian Customs and Border Protection Service can now
track and trace all their armaments, protect them from theft,
and authenticate ownership across their whole asset lifecycle.
DataDot Technology website gets a
new look and feel
In July, DataDot launched a new website incorporating consistent
branding across all distribution points and marketing materials and
providing online purchasing facilities.
Make sure you visit us, take a look and follow us on facebook and
twitter.
www.datadotdna.com
www.datadotdna.com/au
www.datadotdna.com/us
www.twitter.com/DataDotDNA
DataDot Technology in association with Relegen, an asset
management solutions company, are working under the
combined brand "assetDNA".
It was a natural fit - combining DataDotDNA ® with assetDNA.
assetDNA uses a unique numbering system underpinned with
Relegen’s state-of-the-art software program, baseLINE.
The result is an end-to-end solution that will securely track, trace
and monitor individual operational assets through their complete
life cycle.
assetDNA improves the reliability, safety and performance of
each individual operational asset.
3
DATADOT YEAR IN REVIEW 2010

GREG TWEMLOW
General Manager
DataTrace DNA
E gtwemlow@datatracedna.com
New easy to use DataTrace DNA
Reader
DataTrace DNA security is now
available for the FMCG market
DataTrace DNA has developed specially formulated Tracer
materials that can be effectively incorporated into inkjet
printing inks.
DataTraceDNA ® can now be applied to the packaging of
manufactured products to deliver high level, covert
DataTraceDNA ® security to a brand new market.
Where it all started
The same size as your TV remote, the new easy to use
DataTrace DNA Reader, the C1 is available from December 2010.
It’s smaller, lighter and simpler to use than its predecessor.
Most importantly it’s also half the price.
It delivers the simplicity that makes it easy to use and removes the
need for specialised training. It can be used with confidence by
unskilled staff throughout a customer's supply chain and at border
control points.
The user simply points the C1 Reader to where the DataTraceDNA ®
is located, presses the button, and gets immediate authentication
with a flashing green light. And naturally, the red light flashes
when DataTraceDNA ® is not present.
A Hong Kong customer, a manufacturer of naturopathic
medicines, had a major problem with counterfeiting and
unauthorised diversion by distributors.
Using the customer's existing industrial inkjet printer, we
developed our breakthrough Tracer formulation.
The result
Using transparent ink, the printer seamlessly applies a covert
mark which can only be detected with our Reader.
Due to initial success with the pilot project in Hong Kong,
the opportunities in this market are looking very promising.
We are currently in discussions with distributors of industrial
inkjet printers in Turkey, Taiwan, Japan, Italy and the UK.
4
DATADOT YEAR IN REVIEW 2010

New uses for Laser Induced
Breakdown Spectroscopy
DataTrace DNA is developing new and innovative applications for
Laser Induced Breakdown Spectroscopy (LIBS) which have not
been traditionally considered.
New field of expertise for DataTrace DNA
The intellectual property developed by DataTrace DNA will take us
into new fields of authentication expertise.
Industries utilising natural or man-made materials can use LIBS to
identify the quality, purity and integrity of their product.
We lodged a patent application in the US in March 2010 for our
novel planned uses of LIBS.
DataTrace DNA awarded
Pharmaceutical contract
From a highly competitive field, DataTrace DNA was awarded
a prize contract with a well known European pharmaceutical
company.
The five year contract was signed in July 2010, after a two year
process.
The first with the new C1 Reader
The European pharmaceutical company will be the first to
use our new, smaller, lighter, simpler, low cost C1 Reader.
DataTrace DNA accepted into the
prestigious Australian Technology
Showcase Program
DataTrace DNA technology has passed the stringent membership
criteria of the Australian Technology Showcase (ATS) and is now
a member of the ATS program.
ATS, a national networking program managed by state government
departments, helps to promote and develop export markets for
innovative technology based products.
The program will provide financial support, access to an export
marketing network, assistance with international travel and
subsidies for direct marketing.
The benefits of membership also include product promotion
through the ATS website and newsletter and the support of
a dedicated business manager.
This is a great endorsement of the quality of our innovative
technology and of the genuine export potential of DataTraceDNA ® .
DataTraceDNA ® will be used to authenticate one of their more
successful drugs.
Final testing has now been completed and the implementation
rollout is underway.
Why DataTrace DNA
We were chosen because of DataTraceDNA ® 's high security, proven
protection, durability, flexibility of application and future proofing
against any sophisticated counterfeit attacks.
The DataTraceDNA ® forensic Tracers are invisible and can only be
detected and identified by the portable digital reader. They cannot
be removed, tampered with or duplicated.
5
DATADOT YEAR IN REVIEW 2010

CHRIS STOTT
Head of OEM & Automation
E cstott@datadotdna.com
Taking DataDot Technology to China
In a joint venture with DataDot Technology Taiwan, set to be
finalised in January 2011, DataDot Technology Australia is
expanding its presence into mainland China.
Our first stop will be Shanghai, China’s most populous city and
largest centre of commerce and finance.
We will be promoting and marketing DataDotDNA ® and
DataTraceDNA ® , including the innovative and groundbreaking
Whole-Of-Vehicle-Marking (WOVM) and parts marking system,
anti-counterfeit protection and brand authentication.
It is a new and significant development for DataDot Technology to
build a presence in the world’s fastest growing major economy.
Already many Taiwanese companies operate in China or work with
Chinese companies, making Taiwan a logical gateway to China
DataDot Technology Taiwan is an independent licensed
distributor and has had a long standing and highly successful
relationship with DataDot Technology Australia for over nine years.
IAATI and DataDot Technology
Australia to co-host the Asian
Auto Theft Prevention Symposium
in Taipei
Why Taipei
In 2007, Taiwan was first to
introduce compulsory
Whole-Of-Vehicle-Marking
with DataDotDNA ® . The
results have been impressive,
including a police bust of
stolen vehicles involving over
1000 stripped cars.
The best auto theft prevention testimonial
you’ll ever get
The conference will bring together law enforcement agencies,
insurance companies and transport departments from over 34
countries around the world.
They will hear first hand about the success and impressive results
of the Taiwan DataDotDNA ® WOVM initiative. The symposium will
provide delegates with an opportunity to network and gain insights
into the law enforcement initiatives of Asian law enforcement
agencies.
It will be a great opportunity to showcase the latest DataDot
technologies for the detection, prevention and investigation of
auto crimes.
DataDot Technology Australia in conjunction with the International
Association of Auto Theft Investigation, Australasia (IAATI) will be
co-branding partners for the Asian Auto Theft Prevention
Symposium.
The three day auto theft prevention symposium will be held in
Taipei, Taiwan in October 2011.
6
DATADOT YEAR IN REVIEW 2010

BRETT NIPPERESS
Business Development
Manager OEM
E bnipperess@datadotdna.com
Insurance House Group chooses
DataDotDNA ® security
Insurance House Group (IHG) clients are some of the most recognisable
names in Australia.
IHG is committed to innovation and change to benefit their clients
and constantly exploring ways to improve products and services.
Porsche and FPV sticker dimensions:
75mm Porsche width and x FPV 16mm sticker height dimensions: (shown actual size).
Porsche 75mm width and x FPV 16mm sticker height dimensions: (shown actual size).
Subaru 75mm width sticker x 16mm dimensions: height (shown actual size).
78mm Subaru width sticker x 25mm dimensions: height (shown actual size)
Subaru 78mm width sticker x 25mm dimensions: height (shown actual size)
78mm width x 25mm height (shown actual size)
The new DataDotDNA ® warning
stickers
Below are the new DataDotDNA ® warning stickers developed by our
in house graphic design team.
Protected by
Protected by
Protected by
It is this commitment to innovation and quality which led them to
choose DataDotDNA ® theft prevention products.
Why fit DataDotDNA ® to bicycles
Bicycles have been outselling cars for the past five years with
more than 1.2 million bicycles purchased in Australia annually.
Sticker side 1 - View from car exterior
Porsche Roadside Assist
Porsche 1800 Roadside 659 911Assist
Porsche 1800 Roadside 659 911Assist
1800 659 911
Sticker side 2 - View from car interior
And as bicycles become more and more a premium purchase they
are also becoming a target for theft.
To combat this trend IHG have purchased DataDotDNA ® kits to be
fitted to the frames of bicycles at bicycle outlets. The tangible
benefits are threefold - it reduces the possibility of theft, gives the
policy holder a reduced premium on their IHG bicycle cover and
removes the theft excess from their policy.
Sticker side 1 - View from car exterior
www.fpv.com.au
www.fpv.com.au
www.fpv.com.au
Sticker side 2 - View from car interior
Approved Sept 2010
Approved (Subaru Australia) Sept 2010
Approved (Subaru Sept Australia) 2010
(Subaru Australia)
Sticker side1 - View from car exterior
7
DATADOT YEAR IN REVIEW 2010

NEIL MULCAHY
Managing Director
AgTechnix Pty Ltd
E nmulcahy@agtechnix.com
AgTechnix
AgTechnix Pty Limited is the company formed as a joint venture
in late 2009 by DataDot Technology Ltd and IPECO Pty Ltd (seed
coating & materials specialists).
AgTechnix Launches at APSA 2009
AgTechnix launched IntelliSeed at the Asia Pacific Seed
Association (APSA) congress in Bangkok on November 8-12th
2009. IntelliSeed enables seed to be accurately identified with
brand and batch identification numbers. This provides both detection
of counterfeit seed and a means of tracking and tracing seed
in supply chain management.
APSA was specifically targeted as the most likely forum to gauge
industry interest in the Asia Pacific Region and the most likely
requiring seed applied IP protection.
Result
We were delighted with the resounding vote of confidence that
came from seed companies and genetics owners.
AgTechnix Co-Sponsors Indian Seed
Congress February 2010
Following the success of our product launch at APSA and at the
invitation of a number of Indian seed companies AgTechnix
attended the Indian Seed Congress in Bangalore from the
11th – 13th of February and did so as a silver sponsor.
AgTechnix Exhibits at the
International Seed Congress (ISF)
Calgary June 2010
In June, AgTechnix exhibited at the International Seed Congress in
Calgary, Canada. This forum has global significance and the biggest
cross section of decision makers in the seed industry.
AgTechnix announces first
IntelliSeed customer 23rd June
AgTechnix launched IntelliSeed with GlaxoSmithKline (GSK)
for use on poppy seed for the highly regulated industry based in
Tasmania.
From Tasmania, GSK supplies approximately 25% of the global
poppy market with opiate derived products from the cultivation of
poppies. The decision by GSK to use IntelliSeed will enhance the
value of this export product by adding supply chain security,
visibility, seed authentication, “in soil” identification and seeding
rate validation techniques that have been previously unavailable at
this level to the global seed industry.
Mr Rohan Kile, Crop Supply Manager of GSK, said that IntelliSeed
is a logical next step in extending the company’s already high
service levels to its Tasmanian network of contracted growers. It
will provide seed authentication at all levels of the supply chain
from seed production to final sowing.
Outcome
A significant number of industry leaders met with us during and
after the congress with several key companies requesting formal
trials and assessment of product performance on the seed as well
as in the field.
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DATADOT YEAR IN REVIEW 2010

AgTechnix wins NAB – Agricultural
Award for Excellence Innovation and
technology
The 2010 NAB Agribusiness
Awards for Excellence were held
on 28th October 2010. The awards
are run by Monash University and
National Australia Bank (NAB)
Agribusiness and are now in their
15th year.
AgTechnix won the Agribusiness
Technology & Innovation Award.
The award sponsored by the
Australian Institute of Agricultural
Science & Technology was for
AgTechnix’s highly innovative
authentication and identification
system, IntelliSeed.
AgTechnix’s first International
Customer – October 2010
In October 2010 AgTechnix confirmed its first international
customer for seed applied polymers, colours and finishing
powder. We were delighted that this customer is the first of
many anticipated from approaches during numerous congress
discussions in 2010.
AgTechnix exhibits at APSA and IRC
November 2010
AgTechnix rounded out twelve months of activity by again
exhibiting at APSA in Taiwan and also in Vietnam at the
International Rice Congress (IRC) which occurs every 4 years.
The significance of attending APSA this year was the launch of
the new IPECO “Seedworx” seed coating range vastly expanding
the global range of AgTechnix cash generating products.
TM
9
DATADOT YEAR IN REVIEW 2010

Appendix A:
Important Announcements to ASX
(Australian Securities Exchange)
• The formation of AgTechnix Pty Limited, with joint venture
partner IPECO Pty Limited, to track and trace agricultural and
horticultural seeds with both overt and covert authentication
technologies.
• Our partnership with Relegen Pty Limited, owner of a unique
asset management software system called baseLINE, to create
“assetDNA”, an asset management system that has already
been accepted by Customs to track and trace their firearms
in Australia.
• Joint development through DataTrace DNA Pty Ltd with South
African company Holomatrix in producing AuthentiCable, a
patent pending cable protection solution combining metallic dots
and DataTraceDNA ® in a linear asset management solution which,
when combined with the baseLINE software from Relegen, is a
powerful asset management system for utilities globally.
• Successful commercialisation of the Verifi TT technology,
incorporating DataTraceDNA ® , in a textile authentication project
for Elders New Zealand and Primary Wool Co-operative.
• AgTechnix Pty Ltd, entered into a commercial arrangement
with GlaxoSmithKline Australia Pty Limited (GSK) to use
IntelliSeed TM on a commercial quantity of poppy seed to be
sown by GSK in the 2010 season.
• Execution in July 2010 of a five year contract with a top three
European pharmaceutical company, under which DataTraceDNA ®
will be used to authenticate the entire production of one of its
most successful drugs.
• The announcement via our European subsidiary and Italian
distributor that DataDot has entered into an agreement with
Robert Bosch in Italy, increasing by 1,500 the number of service
centres that will be equipped to fit DataDots in our planned
expansion of vehicle aftermarket sales in that country.
• DataDot Technology Limited offered eligible shareholders the
opportunity to participate in a Share Purchase Plan by
subscribing for up to A$15,000 of DataDot’s ordinary shares
without any brokerage costs or other transaction costs. Total
capital raised under the Plan was $3 million, of which $2.098
million was subscribed by shareholders and the balance of
$902,000 funded under an underwriting agreement with KTM
Capital Pty Limited.
• DataDot Technology Limited placed 23,658,537 ordinary shares
with Mr Collin Hwang, owner of DataDot Technology Taiwan
Pte Limited (DDTw). DDTw has been the licensed distributor of
DataDot Technology IP in Taiwan since 2002.
• Further development funded by an Australian multi-national
company of the DataTrace product authentication process
announced in May, for which a patent application has been
lodged in the US. There will be a commercial pilot from
early 2011.
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DATADOT YEAR IN REVIEW 2010

Appendix B: Why DataDot Technology is ahead of the rest
• We are ISO 9001 accredited
• We are the manufacturer not just a reseller.
• We have our own in-house Research & Development team.
• We are constantly developing and improving our technology.
• We manufacture in five countries – Australia, USA, UK, Taiwan and South Africa.
• Key elements of our technologies are patented.
• We are a publicly listed company.
• DataDotDNA ® is fitted in 2 million cars worldwide and growing by more than half a million a year.
• DataDotDNA ® is a multi-layer security system.
• Our VIN microdots are unique.
A special character chosen by a propriety algorithm is etched onto the micro dot – it can’t be replicated.
The water based adhesive contains a UV trace only visible under black light.
The adhesive contains DataTrace DNA – the forensic marking system.
The identity of the DataDot is registered in a secure database.
We store a sample of every DataDotDNA ® manufactured for future reference and security purposes.
• The only micro dot company with certification compliance with the National Motor Vehicle Theft Reduction Council –
a joint initiative of all Australian governments and the insurance industry.
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DATADOT YEAR IN REVIEW 2010