Strategic Alliance to Broaden Applied DNA’s Presence in Asia; To Enable Companies’ Clients’ and Prospects’ Adoption of CertainT Across Textiles, Footwear, Accessories and Component Value Chains

STONY BROOK, N.Y. January 24, 2019. Applied DNA Sciences, Inc. (NASDAQ:APDN) (“Applied DNA,” “the Company”), a leader in PCR-based DNA manufacturing for product authenticity and traceability solutions, announced today the signing of a non-binding Memorandum of Understanding (“MOU”) with the Sun Chemical Supply Company of Taiwan (“Sun Chemical Supply”). Under the terms of the MOU, Sun Chemical Supply will serve as a distributor of the CertainT platform in the heart of Asia’s textiles industry. Established for over 60 years as a chemicals, synthetic materials and equipment distributor in China, Taiwan and Vietnam, Sun Chemical Supply will provide deep industry knowledge, infrastructure and client base to expand Applied DNA’s reach to service its currently commercialized business and further build its pipeline. The MOU is expected to be followed by a definitive agreement.

The multi-dimensional, non-exclusive strategic alliance outlined in the MOU will also enable Sun Chemical Supply to provide value-added services, such as marketing, product stocking and customization, in-field testing, deployment and training. The ability to provide these services locally is imperative to Applied DNA’s commercial and prospective customer base currently manufacturing CertainT authenticated home textiles in China. At the same time, Sun Chemical Supply’s Asia customer base represents additional textiles verticals whose profiles make them strong candidates for adopting the CertainT authentication platform to differentiate and protect brands and supply chains with manufacturing locations in Asia.

Sun Chemical Supply offers 9 locations and 59 staff in Asia with highly-trained professionals in chemical analysis, innovative solutions, end-to-end manufacturing processes and equipment. Its product portfolio is complementary to Applied DNA’s, drawing synergy in customer solution sets for selling, marketing, and installing. For example, Sun Chemical Supply distributes finishing treatments, chemicals and oils used in textile manufacture that may act as efficient carriers for Applied DNA’s SigNature^® T molecular tags. Sun Chemical Supply distributes textiles manufacturing equipment which could be adapted for use in delivering SigNature T tags.

Dr. James Hayward, President and CEO of Applied DNA, said, “We are pleased to take these first steps toward a formal relationship with Sun Chemical Supply to facilitate our reach to Asian manufacturers that are central to many textile supply chains. Sun Chemical Supply is a leader in its field and we believe our collaboration will drive additional adoption of our physical traceability solutions in the global textiles markets.”

David Lai, Chairman and CEO of the Sun Chemical Supply Company, said, “Asian countries play a key role in global textile supply chains, and we are excited to deploy Applied DNA’s CertainT platform to protect our industries and consumers with reliable authentication and traceability solutions.”

Wayne Buchen, Vice President of Strategic Sales for Textiles at Applied DNA Sciences, added, “Partnering with Sun Chemical Supply enables us to drive adoption of our CertainT platform throughout the global textile supply chain, beginning at its origin in Asia. We believe that a CertainT-certified supply chain elevates customers’ brands and products by establishing the transparency and truth that consumers desire. We look forward to a long and mutually beneficial relationship with Sun Chemical Supply.”

About Sun Chemical Group
The Sun Chemical Group was established in 1957, when the textile industry, initiated in Taiwan, was small scale, poorly equipped and lacking technical experience. Sun Chemical focused on strengthening the textile industry and obtained information and technology for clients from Japan. In the 70s, the chemical fiber industry developed in Taiwan and Sun Chemical introduced advanced equipment and spin finishes from Japan, as well as after-sales service. The company gained a strong reputation domestically as well as from businesses in foreign countries. Goulston Technologies, Inc. chose to partner with Sun Chemical and the company formed an affiliate, Sincere Chemical, as a sales agent for Chang Chun Group of PVA, now in its 35th year, and for Dairen Chemical Corporation for EVA. With strong support from customers, Sun Chemical expanded its fields from textile, paper, glue stick connection and plastics to the electronics industry. The company established a branch office in Shenzhen in 2004, in Hangzhou in 2010, and in Vietnam in 2018 and also has offices in Beijing, Tianjin, Zhengzhou and Wuhan. Today, Sun Chemical remains determined to improve operational efficiency, reduce cost and maintain a competitive advantage, while providing excellent service to suppliers and clients.

About Applied DNA Sciences
Applied DNA is a provider of molecular technologies that enable supply chain security, anti-counterfeiting and anti-theft technology, product genotyping and DNA mass production for diagnostics, personalized medicine and therapeutics.

Applied DNA makes life real and safe by providing innovative, molecular-based technology solutions and services that can help protect products, brands, entire supply chains, and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion.

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Common stock listed on NASDAQ under the symbol APDN, and warrants are listed under the symbol APDNW.

Forward-Looking Statements
The statements made by Applied DNA in this press release may be “forward-looking” in nature within the meaning of the Private Securities Litigation Act of 1995. Forward-looking statements describe Applied DNA’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 Applied DNA. Actual results could differ materially from those projected due to its history of net losses, limited financial resources, limited market acceptance and various other factors detailed from time to time in Applied DNA’s SEC reports and filings, including our Annual Report on Form 10-K filed on December 18, 2018 and other reports we file with the SEC, which are available at www.sec.gov. Applied DNA 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, unless otherwise required by law.

Investor contact: Sanjay M. Hurry, 212-838-3777, LHA Investor Relations, shurry@lhai.com
Media: Meryl Rader, 781-639-4924, meryl@cgprpublicrelations.com
Program contact: MeiLin Wan, 631-240-8849, meilin.wan@adnas.com
Web: www.adnas.com
Twitter: @APDN

The CertainT Supply Chain Platform consolidates proven individual elements of the company’s portfolio with a business-specific lens. © Applied DNA Sciences

Applied DNA Sciences, a leader in PCR-based DNA manufacturing for product authenticity and traceability solutions, has signed a non-binding Memorandum of Understanding (MOU) with the Sun Chemical Supply Company of Taiwan (Sun Chemical Supply).

Under the terms of the MOU, Sun Chemical Supply will serve as a distributor of the CertainT platform in the heart of Asia’s textiles industry. Established for over 60 years as a chemicals, synthetic materials and equipment distributor in China, Taiwan and Vietnam, Sun Chemical Supply will provide deep industry knowledge, infrastructure and client base to expand Applied DNA’s reach to service its currently commercialised business and further build its pipeline. The MOU is expected to be followed by a definitive agreement.

The trade war between the U.S. and China, which has seen extra tariffs on a variety of consumer goods, has revealed the vulnerability of the apparel supply chain. For even the most agile companies, moving production would be a major disruption—one that would likely come with many unforeseen issues.

Wayne Buchen, APDN’s VP of Strategic Sales, spoke with Sourcing Journal about the challenges facing today’s apparel supply chain.

Cotton sensor alarm! Fridge temperature alarm! Compressed air low! Check nozzles!

These alerts—from an Industrial Internet of Things (IIoT) system developed by the company I serve as Chief Information Officer—may call to mind an ancient question: “If a tree falls in a forest and no one hears, does it make a sound?” To which some have replied: “It matters not, since the tree has fallen.”

This article is a compendium of lessons learned from implementing our IIoT process, people and technology in the most unlikely of environments: the cotton gin. While these lessons learned were from our first ventures with the cotton gin, they have been extremely helpful to us in our expansion to other applications, including legal cannabis which faces its own needs—both regulatory and economic—for traceability.

By: IFAI / Industry News, News

Results of a new study published in the September/October 2018 issue of the AATCC Review confirmed that DNA molecular tagging is an effective tool to authenticate denim and maintains its integrity even after exposed to the rigors of bleaching and abrasion.

GHCL is working towards carbon neutrality for its entire textiles business by 2021. It is also actively using sustainable raw material in textiles-more sustainable cotton (BCI/organic/Supima), cellulosic fibres (Tencel Lyocell) and recycled PET fibres. In keeping with the circular economy, GHCL is trying to reuse as much material as it can.

GHCL has launched Cirkularity, a new brand of eight lines of bedding supporting the circular economy. These lines centre on ‘reduce, reuse and recycle’. Rekoop, the inspiration behind Cirkularity, is a brand of bedding products made from recycled plastic (rPET) and is the first bedding product to use Applied DNA Sciences’ CertainT platform. Rekoop bedding products will debut in the New York Home Fashions Market Week in March 2019 and will be available for sale thereafter.

In order to identify counterfeit equipment and remove them from the supply chain, RDECOM ECBC scientists have developed a method to use DNA tags to identify counterfeit equipment.

Anyone who’s ever been burned by a knockoff pair of counterfeit designer sunglasses can tell you: counterfeit is never better than the real thing.The U.S. Army, after learning that counterfeit equipment entered the supply chain, is now developing a method for identifying counterfeit equipment by marking authentic equipment with DNA tags.

A few years ago, the U.S. Senate Armed Services Committee issued a report stating counterfeit components were frequently found in the supply chain, usually electronics. They noted that the equipment was generally of a lesser quality than required.

In response, the Defense Logistics Agency (DLA) funded a project researching the use of DNA tags to track components, a program conducted by the U.S. Army Research Development and Engineering Command Edgewood Chemical Biological Center. DNA was chosen for its stability: it’s robust and doesn’t degrade easily in different temperatures.

Leading manufacturer of home textiles GHCL is steadily increasing its presence in the home textiles segment, with the launch of its Rekoop brand on Amazon this March. GHCL launched Cirkularity brand of eight lines of bedding supporting the circular economy last year. These lines centre on “reduce, reuse and recycle”. Rekoop, the inspiration behind Cirkularity, is a brand of bedding products made from recycled plastic (rPET) and is the first bedding product to use Applied DNA Sciences’ CertainT platform.

GHCL is steadily increasing its presence in the home textile segment. Instead of operating in the commodity space, GHCL is offering innovative and sustainable solutions which have been very well received in the global market. Talking about the company’s presence in the home textile segment and its participating at Heimtextil 2019 at Frankfurt, Mr. Manu Kapur, President and CEO of GHCL Home Textile, said : 2018 was a good year for us at GHCL’s Home Textile Division. We very firmly laid out our 4 Pillar Strategy – Sustainability, Traceability, Innovation and Giving Back to Society.  The highlight for us was that we consistently demonstrated our passion on caring for the environment, thru the successful launch of two major brands REKOOP and CIRKULARITY.

“The interest in REKOOP, a concept that resonates very well with the millennial customer since it is both, sustainable and forensically traceable, has been overwhelming. We are in discussions with major retailers for the placement of REKOOP on a global scale.  This March will see the launch of REKOOP on Amazon in the United States”, says Mr. Manu Kapur.