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 <a xmlns="http://www.w3.org/1999/xhtml" href="http://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fadnas.com%2F&amp;esheet=51580700&amp;newsitemid=20170627005455&amp;lan=en-US&amp;anchor=Applied+DNA+Sciences&amp;index=1&amp;md5=4ec7a56ef09b69b556a57a04c985e994" rel="nofollow" rel="nofollow">Applied 
 DNA Sciences</a>, Inc. ((("Applied DNA, " "the company, NASDAQ:<a class="ticker" href="/stock/APDN#NASDAQ">APDN</a>), has 
 completed initial work under a funded contract with <a xmlns="http://www.w3.org/1999/xhtml" href="http://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.lilyofthedesert.com%2F&amp;esheet=51580700&amp;newsitemid=20170627005455&amp;lan=en-US&amp;anchor=Lily+of+the+Desert&amp;index=2&amp;md5=e89a1549dfd9a149eb5ffabffc7a04c0" rel="nofollow" rel="nofollow">Lily 
 of the Desert</a>, a leading US-based producer of Aloe vera 
 products, whose offerings include nutritional drinks, topical crèmes and 
 gels. The pilot studies defined by the agreement are designed to 
 demonstrate the feasibility of molecular tagging to create the 
 industry's first traceable and authenticated Aloe vera juices, 
 from raw material to the manufacture of nutritional drinks and topical 
 consumer products. Applied DNA and Lily of the Desert are working 
 together to protect consumer supply lines, with Phase One expected to be 
 completed within the next month.
 
 
 Extracts of Aloe vera extracts represent a nearly $2 billion 
 market, with a total mass of more than 60,000 metric tons and are 
 expected to grow through 2026 at a compounded annual growth rate of 7.7% 
 (Future Market Insights, 2016). The clinical utility of Aloe vera 
 has been the subject of thousands of studies that document dermatologic 
 and digestive impact. In a November report last year, <a xmlns="http://www.w3.org/1999/xhtml" href="http://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2016-11-22%2Fno-evidence-of-aloe-vera-found-in-the-aloe-vera-at-wal-mart-cvs&amp;esheet=51580700&amp;newsitemid=20170627005455&amp;lan=en-US&amp;anchor=Bloomberg&amp;index=3&amp;md5=a6163aa8dbcbf902147644be5ac2956a" rel="nofollow" rel="nofollow">Bloomberg</a> 
 stated there was no chemical evidence of Aloe vera in gels 
 purported to contain the extract as a primary ingredient in products 
 sold at Target, Walmart and CVS. A class action <a xmlns="http://www.w3.org/1999/xhtml" href="http://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.truthinadvertising.org%2Fwp-content%2Fuploads%2F2016%2F06%2FBordenet-v-CVS-complaint.pdf&amp;esheet=51580700&amp;newsitemid=20170627005455&amp;lan=en-US&amp;anchor=suit&amp;index=4&amp;md5=9e398b07b9af61191288344300de4250" rel="nofollow" rel="nofollow">suit</a> 
 was filed in June of 2016 against CVS alleging there was no Aloe vera 
 extract in their Aloe vera gels.
 
 
 The challenge lies with traditional methods of verifying the content of 
 Aloe vera in finished goods, which can be misleading in complex 
 formulae - a problem that Applied DNA intends to resolve. Not only is Aloe 
 vera difficult to chemically identify once processed into finished 
 consumer products, but Applied DNA has demonstrated that manufacturing 
 processes damage Aloe vera's native DNA, making it impossible to 
 rely solely on the traditional Bar Code of Life (BCOL) DNA for 
 identification.
 
 
 The solution lies in the laboratory and pilot manufacturing trials 
 conducted by Applied DNA scientists in collaboration with Lily of the 
 Desert. The stability and persistence of the Company's Molecular 
 SigNature tags have been demonstrated from raw material to nutritional 
 supplements to fully-processed Aloe vera consumer products. With 
 the capability to authenticate real Aloe vera juices throughout 
 the supply chain based on a Molecular SigNatures, retailers and brands 
 may support their label claims, and provide reassurance and certainty to 
 consumers.
 
 
 Dr. Glen Gillis, Vice President of Research and Chief Science Officer 
 stated, "Proton NMR (Nuclear Magnetic Resonance), the current, accepted 
 analytical technique for a detection of Aloe quality, has proven 
 to be a powerful and accurate tool for detection of Aloe vera in 
 many products. But as it is with any analytical technique, NMR is not 
 without flaws. The application of &#39;molecular tagging&#39; to Aloe vera, 
 a new and cutting-edge technique used in tracking of the supply chain 
 from source to shelf, will add to the industry another layer of 
 protection for both branded products and end-user confidence."
 
 
 The same processes being employed in these pilot studies can be readily 
 used to provide ingredient verification and supply chain security to 
 other brands, using other natural extracts, who are seeking to reassure 
 customers about the quality of their products. &#34;Consumers are 
 increasingly demanding transparency and they want to know the origins of 
 the ingredients in the cosmetics they purchase. With our work in Aloe 
 vera, they are getting even more than this. They are getting 
 forensic proof of where the materials come from, giving them 
 transparency with certainty,&#34; said Dr. Barbara Brockway, Director of 
 Personal Care at Applied DNA.
 
 
 Dr. James A. Hayward, President and CEO of Applied DNA, said, "Since we 
 have previously documented the ability of our Molecular SigNatures to 
 authenticate Aloe vera, we look forward to receiving the results 
 of this pilot study which, if successful, have the potential to open up 
 new commercial markets for the Company. These tags function as the 
 equivalent of molecular certificates embedded in the Aloe vera, 
 documenting the extract content as the product is manufactured and 
 travels through the supply chain. A wide array of markets, from food to 
 supplements to pharmaceuticals to personal care, stand to benefit from 
 the specific advantages of this method of verification, literally at the 
 frontier of supply chain science."
 
 
 About Lily of the Desert
 
 
 Lily of the Desert owns the organic Aloe vera farms and 
 processing facilities for manufacturing the numerous unique aloe vera 
 products that carry our brand name. This is rare amongst Aloe vera companies 
 in the natural products industry. Our Aloe vera is grown and 
 processed in the Rio Grande Valley of Texas and the desert of Mexico. 
 Our corporate headquarters are in Denton, Texas. The Lily of the Desert 
 brand of Aloe vera products is the leader of the Aloe vera 
 category in the natural products industry, exceeding the next 6 
 competitors in total unit sales (ref. SPINS). As a company, Lily of the 
 Desert has maintained our commitment in ‘Retaining the Quality that 
 Nature Created' by making aloe vera products our customers can be 
 confident in buying.
 
 
 About Applied DNA
 
 
 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 and therapeutics.
 
 
 We make 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. The proprietary DNA-based "CertainT™" platform can be 
 used to identify, tag, test, and track products, to help assure 
 authenticity, origin, traceability, sustainability and quality of 
 products. SigNature® DNA describes the core technology 
 ingredient that is at the heart of a family of uncopyable, security and 
 authentication solutions such as SigNature® T and fiberTyping®, 
 targeted toward textiles and apparel, BackTrac™ and DNAnet®, 
 for anti-theft and loss prevention, and digitalDNA®, 
 providing powerful track- and-trace. All provide a forensic chain of 
 evidence, and can be used to prosecute perpetrators. Applied DNA 
 Sciences is also engaged in the large-scale production of specific DNA 
 sequences using the polymerase chain reaction.
 
 
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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 APDN 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 APDN'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 APDN. Actual results could differ 
 materially from those projected due to our short operating history, 
 limited financial resources, limited market acceptance, market 
 competition and various other factors detailed from time to time in 
 APDN's SEC reports and filings, including our Annual Report on Form 10-K 
 filed on December 6, 2016, and our subsequent quarterly reports on Form 
 10-Q filed on February 9, 2017, and May 11, 2017 which are available at <a xmlns="http://www.w3.org/1999/xhtml" href="http://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.sec.gov&amp;esheet=51580700&amp;newsitemid=20170627005455&amp;lan=en-US&amp;anchor=www.sec.gov&amp;index=9&amp;md5=f7ab6733e52f9c89e152a02ae8007ac6" rel="nofollow" rel="nofollow">www.sec.gov</a>. 
 APDN 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.
 
 
 
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