DLA Reimburses Trusted Suppliers for SigNature DNA Marking of High-Reliability Electronic Parts

STONY BROOK, NY--(Marketwire - Jan 28, 2013) - Applied DNA Sciences, Inc. ( OTCBB : APDN ), (Twitter: @APDN), a provider of DNA-based anti-counterfeiting technology and product authentication solutions, today welcomed the announcement by the U.S. Defense Logistics Agency (DLA) that the Agency would subsidize APDN's SigNature DNA marking for defense suppliers who provide designated high-reliability electronics to the Agency.The announcement, published as an "Update" on the DLA Bid Board System (DIBBS) web site on January 24, 2013, also emphasized that "effective immediately, only trusted sources who comply with Deoxyribonucleic Acid marking requirement in DLAD 52.11-9074 are eligible to receive FSC 5962 awards from DLA.There are no exceptions."

The text of the DIBBS announcement, which also appeared on DLA's on line Supplier Information Resource Center (SIRC), explains that the Agency will "reimburse trusted sources who receive awards for the direct costs of the annual DNA marking license that must be obtained from Applied DNA Sciences..."

The announcement also notes that "trusted sources will be reimbursed through a CLIN for 'Contractor DNA Marking' in the award document.Those companies will be reimbursed for one license per year."The acronym 'CLIN' pertains to the DLA Contract Line Item Number system.The "license" to which DLA refers includes the costs for the creation and archiving of an annual mark specific to a single trusted supplier.

Since November 15, 2012, SigNature DNA marking from APDN has been required for use by suppliers who are awarded contracts to provide electronic parts in the FSC 5962 category, a mandate written into the DLAD clause noted above.

The January 24 announcement is the first time that the subsidy and trusted sources details have been released.

Janice Meraglia, Vice President for Government and Military Programs at APDN, said, "By subsidizing the cost of the DNA program to those trusted suppliers who win awards, DLA continues to stand firm in its commitment to our service men and women."

Applied DNA Sciences CEO and President, Dr. James A. Hayward commented:

"DLA has lowered any barrier to compliance with the DNA mandate by implementing subsidized costs and safe procurement through trusted sources. It is a formula that could be powerfully applied to other high-risk categories of parts provided to DLA, and to other government agencies.

"For electronics businesses, the cost/benefit ratio is significantly enhanced. Return-on-DNA-investment will one day be measured in market share recovered by original manufacturers, and in equipment and lives saved from the hazards of counterfeit electronics."

High-risk categories in the military supply can include load-bearing parts like ball-bearings, and other critical parts such as O-rings, fasteners, and brake shoes. These parts are thought to be widely counterfeited.In the commercial sector, fake medical and automotive parts are reported to be common, creating a comparable threat.DLA addressed these issues in a press release on October 31, 2012, stating, in a FAQ about SigNature DNA marking:

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DLA Reimburses Trusted Suppliers for SigNature DNA Marking of High-Reliability Electronic Parts