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DataDot Technology Limited

ABN 54 901 908 726

Stock Exchange Announcement

2 October, 2007

DataTraceDNA Pty Ltd – Licence Fee

DataTraceDNA Pty Ltd, the joint venture company owned by DataDot Technology Ltd (DDT) and CSIRO, has a distribution agreement with DataDot Technology (Hong Kong and China) Limited, which is not a related party, under which DataTraceDNA Pty Ltd has been paid licence fees of $1 million and a further payment of $9 million was due by September 30, 2007. This further payment of $9 million was not received by the due date.

Under the terms of the distribution agreement, DataDot Technology (Hong Kong and China) Limited has 30 days after service of notice to remedy this material breach. Notice has been served. In the event that the further payment is not received within this period, the distribution licence will terminate under the terms of the agreement.

If the licence is terminated for this reason, then the valuable distribution rights for China, including Hong Kong and Macau, will revert to DataTraceDNA Pty Ltd and may be licensed to another entity.

In addition, the $1 million already received by DataTraceDNA Pty Ltd is expressly non-refundable under the distribution agreement.

For accounting purposes the $9 million distribution agreement licence fee has not previously been recognised as revenue in DataTraceDNA Pty Limited and accordingly there is no requirement to make a provision or book a write-off in that company’s accounts.

Mr Ian Allen, CEO of DDT, said that, should the further payment not be received within the additional 30 day period, the company will examine all options for recovery from DataDot Technology (Hong Kong and China) Limited and/or the directors of that company.

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About DataTraceDNA

DataTraceDNA is a joint venture partnership of the CSIRO and DataDot Technology. The Company offers a groundbreaking approach to counterfeit security protection through nanotechnology that is invisibly embedded within the molecular structure of a manufactured product. DataDot Technology Ltd is listed on the Australian Stock Exchange under the code ‘DDT’. The Commonwealth Scientific and Industrial Research Organisation (CSIRO) is backed by the Australian government, is one of the top ranked research institutions in the world and is a leader in the rapidly growing field of nanotechnology. The technologies are supported by our worldwide verification database.

About DataDot Technology Limited (DDT)

DDT is a leading asset identification company, with expanding global operations. DDT has invented, patented and commercialised an asset identification technology that provides greater asset security, proves authenticity of product, assists in proving ownership, and acts as a deterrent to thieves.

The DataDotDNA technology has gained acceptance around the world and is currently sold in Australia, UK/Europe, USA, Canada, South Africa, Indonesia, Taiwan, Thailand, Hong Kong, China, New Zealand, Russia, Romania and Poland. DataDotDNA customers include a number of major vehicle suppliers in various regions including Audi, Nissan, BMW, Subaru, Ford Performance Vehicles, Porsche, Holden Special Vehicles, Mitsubishi, Nissan, Toyota, VW and Yamaha.

For further information please contact:

Mr Ian Allen Chief Executive Officer DataDot Technology Limited Phone: +612 9975 4777 Fax: +612 9975 4700 Web: www.datadotdna.com

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