new products and markets for datadot

extracts from the recent annual report,

The Group is also about to launch DataDot i Find, a security solution combining the DataDot Tracker, DataDotDNA and potentially a theft warranty – the tracker will locate and inform owners in real time of the location of their property and the DataDotDNA will verify ownership of the property.

DataDot i Find is expected to have application across the motor vehicle, insurance, boating, plant and equipment and motor cycle industries, in addition to home and business.

Our joint venture company, DataTraceDNA Pty. Limited, continues to develop commercial applications for
specific industries in the three market segments identified in 2007:

1. High Security Solutions - companies needing or offering a high degree of covert security for items
such as confidential documents and tax stamps.

2. Industry Solutions - especially in industries exhibiting a high degree of vertical integration across
product development and distribution.

3. Bulk Material Solutions - the traditional bulk industries of concrete, polymers, paints and explosives.

In each of these areas the company is in various stages of discussion or product testing with potential customers. In all cases the engagement timeframes are determined by the potential customers and without exception have proven to be more protracted than our earlier estimates due to extended product testing protocols.

In High Security Solutions, agreement has been reached with Gopsons, the largest security printer in India, to make DataTraceDNA their exclusive forensic tracer. Directors expect that applications will extend to include labels and tax stamps requiring a security feature.

In Industry Solutions the company has recently launched a new textile product, Verifi TT, with AgResearch of New Zealand, and expects to announce shortly a supply contract with a North American injection moulding company that will use DataTraceDNA in polymer products.

In Bulk Materials our joint research work with Orica is continuing, a quality control application for concrete mixing will soon be available to that market and paint manufacturers are subjecting DataTraceDNA to extended durability tests