PhotoSecure and DNA Technologies Team Up to Combat Counterfeiting
 
CrossOff Incorporated Awarded $1.8m from Atlantic Innovation Fund (AIF)

(Halifax, NS): CrossOff Incorporated reported today that they will receive funding of $1.8 million from the Atlantic Innovation Fund (AIF) to expand the capability and marketability of their existing DNA Matrix™. The announcement was made yesterday at a news conference in Halifax by The Honourable Robert G. Thibault, Minister of Fisheries and Oceans. http://www.acoa.ca/e/media/press/press.shtml?1960

The DNA Matrix™ is a patented technology that combines identifiable DNA (deoxyribonucleic acid) gene segments and an ink that may be applied as either a visible or covert security marker on any tangible surface. The mark, which is virtually impossible to decode, uses the DNA-laced ink to tag and protect valuable products, brands and intellectual property.

The funding will enable CrossOff to further enhance the DNA Matrix™ through two distinct projects. The first project will develop an automated DNA extraction and analysis system for the field. The development of an automated DNA extraction and analysis system will enable analysis to be undertaken in the field as opposed to a laboratory setting. This system, which will be a portable unit, will dramatically improve the overall processes of DNA extraction. Currently, the process requires DNA marked items to be sent to a central lab for "wet" testing. This is a manual process that is labour intensive and requires significant expertise. The development of a field system will also help create a standardized extraction technique applicable to a range of marking vehicles and amenable to automation.

The second aspect of the project involves developing DNA authentication markers that will remain stable for 100 years, thereby ensuring and extending the longevity of the DNA Matrix™. This second project, referred to as encapsulation, ensures the longevity of the DNA Matrix™. The Company has proven that detectable DNA marks can be incorporated into printing vehicles, which may be stable for years. However, by encapsulating the DNA protective matrix, the mark is protected from extreme conditions in the printing and curing process and is capable of surviving for up to 100 years.

"This funding will allow CrossOff's DNA Technologies division to pursue further research and development of the DNA Matrix™," says Donnie Snow, CEO of CrossOff Inc. "To stay ahead of advanced counterfeiting efforts around the world, continued investment in R&D is essential for ensuring the longevity and marketability of our product."

Illegal counterfeiting of products is one of the fastest-growing industries in today's global marketplace. The worldwide counterfeit market was valued at US$385 billion in 2001 (International Chamber of Commerce). Reputable suppliers and manufacturers lose millions in potential revenues every year to fraudulent activities and consumers lose trust in suppliers, brand names, and potentially channels of distribution.

About CrossOff
CrossOff Incorporated is a Canadian based services company with operating units focused in the areas of anti-counterfeiting and brand protection, technology training and consulting, and property management. CrossOff is traded on the Toronto Stock Exchange as OFF. More information is available on the company's website at www.crossoff.com.

For further information, please contact:
Moira MacDonald
Media Relations
902 209 3845
media@crossoff.com

              © 2001 - 2003. DNA Technologies, a Division of CrossOff Incorporated. All rights reserved. DNA MATRIX is a trademark of CrossOff Incorporated.