University at Albany NanoCollege & Applied DNA Sciences, Inc. Partner on Nanochip Anti-Counterfeiting Program

ALBANY, NY and STONY BROOK, NY--01/17/12-The College of Nanoscale Science and Engineering (CNSE) of the University at Albany and Long Island-based Applied DNA Sciences, Inc. (OTC.BB: APDN.OB - News) today announced a partnership to enable nanotechnology-driven innovations that would play a critical role in preventing the counterfeiting of computer chips -- a collaboration in the groundbreaking area of “nanosecurity” that initially targets the $20 billion defense industry chip market and has the potential to impact nanoelectronics and aerospace markets well in excess of $300 billion.

Through joint research and development at CNSE’s Albany NanoTech Complex, CNSE and APDN will accelerate the development of APDN’s SigNature DNA® product. This will include the integration of new methods for DNA deposition on nanoelectronics wafers and computer chips both prior to, and including, final packaging to ensure the integrity and security of processed wafers.

The partnership between CNSE and APDN will support research, development and deployment of authentication protocols and procedures in established process flows, including CMOS, MEMS, photonics, and other device derivatives, as well as advanced packaging technologies, such as 3-dimensional wafer-to-wafer and die-on-wafer. When realized, these advances would enable comprehensive supply chain protection well into the foreseeable future.

The collaboration comes on the heels of the enacting of the 2012 National Defense Authorization Act. This law will significantly strengthen protections against the wave of counterfeit electronic parts coming into the defense supply system by requiring that military suppliers and government agencies create and implement counterfeit detection and avoidance systems, among many other strict anti-counterfeiting provisions. These new mandates could be enabled through a CNSE-APDN partnership.

And while the spotlight is justifiably on protecting the defense supply chain, the private sector would also reap significant and immediate rewards from CNSE-APDN efforts.

“It is critical that nanotechnology research and development is done right here in the U.S.,” said U.S. Senator Kirsten Gillibrand. “The partnership between the College of Nanoscale Science and Engineering and Applied DNA Sciences on Long Island will help keep our country competitive and combat nanochip counterfeiting.”

Dr. James A. Hayward, President and CEO of Applied DNA Sciences, said, “With this partnership between the UAlbany NanoCollege and APDN, we create the field of ‘nanosecurity.’ Both entities contribute leading-edge technology and proven success in its commercialization. We are confident of results and in our capacity for near-term deployment.”

Dean Fuleihan, CNSE Executive Vice President for Strategic Partnerships, said, “The UAlbany NanoCollege is delighted to enter into this partnership with Applied DNA Sciences to enable innovative anti-counterfeiting technology that is vital to protecting American troops and U.S. military interests, both at home and abroad. This collaboration will accelerate research, development and commercialization to ensure the security and integrity of computer chips that drive our nation’s most advanced weaponry and intelligence systems, and further demonstrates the success of public-private partnerships in positioning CNSE and New York state as a hub for 21st century military technologies driven by nanotechnology know how.”

The APDN system marks computer chips with uncopyable DNA codes, which can then be used to authenticate the originality of chips anywhere along the supply chain. The APDN technology can not only enhance inspection, but also goes much further to forensically verify originality, using botanical DNA to create “tags” to mark the product in a unique way.

As part of the collaboration, CNSE and APDN intend to establish a joint technology development partnership model -- engaging nanoelectronics device fabricators, leading aerospace and defense system integration companies, and state and federal government agencies -- to further advance the implementation of counterfeit protection measures. CNSE recently submitted a technology development proposal in partnership with APDN and other leading nanoelectronics companies in response to a Broad Agency Announcement issued by the Intelligence Advanced Research Projects Activity (IARPA), which invests in technology programs that have the potential to provide our nation with an overwhelming intelligence advantage over future adversaries.

About CNSE. The UAlbany CNSE is the first college in the world dedicated to education, research, development and deployment in the emerging disciplines of nanoscience, nanoengineering, nanobioscience and nanoeconomics. With more than $14 billon in high-tech investments, CNSE represents the world’s most advanced university-driven research enterprise, offering students a one-of-a-kind academic experience and providing over 300 corporate partners with access to an unmatched ecosystem for leading-edge R&D and commercialization of nanoelectronics and nanotechnology innovations.

CNSE’s footprint spans upstate New York, including its Albany NanoTech Complex, an 800,000-square-foot megaplex with the only fully-integrated, 300mm wafer, computer chip pilot prototyping and demonstration line within 85,000 square feet of Class 1 capable cleanrooms. More than 2,600 scientists, researchers, engineers, students and faculty work here, from companies including IBM, Intel, GlobalFoundries, SEMATECH, Samsung, TSMC, Toshiba, Applied Materials, Tokyo Electron, ASML and Novellus Systems.

An expansion now underway, part of which will house the world’s first Global 450mm Consortium, will add nearly 500,000 square feet of next-generation infrastructure, an additional 50,000 square feet of Class 1 capable cleanrooms, and more than 1,000 scientists, researchers and engineers from CNSE and global corporations.

In addition, CNSE’s Solar Energy Development Center in Halfmoon provides a prototyping and demonstration line for next-generation CIGS thin-film solar cells. CNSE’s Smart Systems Technology and Commercialization Center of Excellence (STC) in Rochester offers state-of-the-art capabilities for MEMS fabrication and packaging. CNSE also co-founded and manages operations at the Computer Chip Commercialization Center at SUNYIT in Utica and is a co-founder of the Nanotechnology Innovation and Commercialization Excelerator in Syracuse. For information, visit www.cnse.albany.edu.

About APDN. APDN sells patent-protected 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. 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 8, 2011 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.

Contact:

Steve Janack

Vice President for Marketing and Communications CNSE

(phone) 518-956-7322

sjanack@uamail.albany.edu

Mitchell Miller

Director of Communications

Applied DNA Sciences, Inc.

(phone) 917-573-3373

mitchell.miller@adnas.com

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