Dow Jones 12063.09 +34.03 3:37 am PDT, June 20, 2008 NASDAQ 2462.06 +0.00 For info, visit access.smallcapnetwork.com S & P 500 1342.83 +0.00 Change your subscription status here Russell 2000 737.83 +0.00 VOLUME 08 : ISSUE 57 Applied DNA Passes Final Supima Test Looks like this is the week to hear from companies we haven't heard from in a while. We got a dose of good news yesterday from Applied DNA (OTCBB: APDN)...some news that validates some work they've been doing, but more importantly, could open the door for much more revenue. What was the news? They've received the sixth and final R&D payment from the Supima growers association.  Just so this makes sense to everyone, let's back-track just a little bit.  The American Pima cotton growers association is designed to protect Supima cotton's integrity. Supima is a particular kind of quality cotton, superior to the common Upland cotton. Upland cotton, however, could possibly be passed off as Supima cotton by what are essentially product pirates or counterfeiters (since Supima commands a much higher price).  Though it may seem trivial in the surface, it's not. The risk of lower-quality cotton being sold as Supima cotton damages the integrity of the Supima name, which could cost these growers millions of dollars worth pricing power.  Historically, there's not been a lot that can be done about it. Applied DNA's technology, however, can distinguish between Supima and Upland cotton.  The receipt of the sixth payment from Supima represents a successful development of the tools and technology the Supima association wanted to see developed. See, Applied DNA would only receive payment for each stage of the development process if the Supima organization was satisfied with the prior stage's progress. The fact that they got paid the last of the six payments says the development has fully met the cotton grower association's expectations.  The potential impact for Applied DNA is two-pronged.  The first is a possible long-term relationship with the Supima organization. It's still not exactly clear to me what the Supima growers associations plans to do with the technology. If they want to apply Supima/Upland tests going forward though, they're going to need supplies and equipment to do it. Applied DNA - the test's developer - seems like the obvious supplier of choice  The second upside for Applied DNA is rooted in the research...the creation of products that are attractive to similar organizations or companies.  Based on the research done to develop the tests, the company came up with two specific fabric identification procedures - FiberTyping, and PimaTyping The first is the test that distinguishes between Supima and Upland cotton, while the latter can tell you which part of the world a particular strand of Supima came from.  Both are important tests in their present form, but I think either test could be tweaked or reworked to do similar jobs for other organizations. That's down the road, but still an interesting revenue possibility.  As for the stock, the strength we've seen the last couple of days makes sense now. At the same time, the area between 8 cents and 9 cents has been natural support a couple of times over the last few months. If the pattern holds up, APDN could get some mileage out of this news and at least revisit the 17 cent level.  By the way, if you're a shareholder, you may want to mark your calendar. The Annual Meeting of Stockholders will be held on Tuesday September 16, 2008 at 1:00 PM EDT at the Charles B. Wang Center in Stony Brook, New York. You have to be an owner as of the close of business on July 15th, 2008 if you wish to vote at the meeting.  Anyway, here's the press release...    Applied DNA Sciences Receives Final Payment from Supima Thursday June 19, 4:05 pm ET  Launches Authentication Services  STONY BROOK, N.Y.--(BUSINESS WIRE)--Applied DNA Sciences, Inc. (OTC Bulletin Board: APDN), a provider of DNA-based security solutions, today announced that it has successfully completed the feasibility study and received the final payment from Supima, the promotional organization of the American Pima cotton growers. The name "Supima(r)" is a licensed trademark owned by Supima and its members, used to promote textile and apparel products made of 100% American Pima cotton. The name "Supima" is an abbreviation for Superior Pima. Supima cotton is renowned for its superior fiber length, strength and natural luster. Because of the fineness of Supima cotton, more fibers can be spun into a yarn of a given count, which will enhance the feel and softness, drapeability and brilliance of color of a fabric. Supima products can be found at finer department and specialty stores nationwide.  Dr. Benjamin Liang, Chief Technology Officer of APDN stated, "We have been successful in developing a genetic assay to distinguish between Pima (including Supima) and Upland cotton in fiber and fabric. The proprietary, patent-pending methodologies are very specific and robust and similar to what has been used to track human lineage of archaeological remains. This test, being marketed as FiberTyping(tm), can now be used to authenticate products for Supima, distinguishing Pima cotton from Upland cotton." "We believe that the genetic assays developed by APDN to detect Pima cotton DNA in fiber as well as fabric are remarkable discoveries which will help us provide a higher level of quality assurance and authentication to all participants in the value chain, from the cotton grower to the end consumer. We are committed to preserving the reputation of Supima cotton as the finest cotton in the world," commented Jesse Curlee, President of Supima. "We believe that APDN's developments will alter the face of the global cotton industry and favorably affect the demand curve." Cotton classification and the authentication of cotton geographic origin are issues of global significance. As the world's largest consumer market, the United States is an attractive destination for products containing cotton. At the same time, domestic cotton and textiles are often exported to be processed by foreign apparel-makers. When these garments are imported back into the United States for sale, some of those made from US cotton, are allowed to re-enter with favorable tariff treatment. FiberTyping(tm), for the first time offers a means to determine the origin of the fibers and textiles in these finished goods which previously were impossible to trace. "Supima is to be commended for its commitment to ensuring quality and authenticity through innovation," commented James A. Hayward, President & CEO of APDN. "Along with FiberTyping(tm), APDN has also developed a genetic assay known as PimaTyping(tm), to differentiate between ELS cotton from different regions of the world. We believe that these assays will have important implications for U.S. cotton, both Pima and Upland, and for regulating international trade," Dr. Hayward continued. Pima cotton is a generic name for extra-long staple (ELS) cotton grown in the U.S., Australia, Peru and in very limited production in a few other locations around the world. Pima is from the Gossypium barbadense species, compared to Gossypium hirsutum to which Upland cotton belongs. The primary differences between Pima (ELS growths) cotton and Upland cotton are staple length and strength of the fiber. In the US, cotton is considered to be ELS or Pima if it is an inch and 3/8 or longer. Its strength and uniformity measurements are considerably higher than those of Upland cotton, which improves the durability and increases the lifespan of the textile and apparel products. About Applied DNA Sciences, Inc. Applied DNA Sciences markets and sells DNA encrypted and embedded solutions that are forensically authenticated by machine-readable devices. These solutions can be easily integrated with a range of inks, threads, varnishes, adhesives as well as thermal ribbon, inkjet and laser ink. Applied DNA Sciences' products can help protect the brands and intellectual property that can easily be eroded by counterfeiting, product diversion and fraud. APDN's common stock is listed on the Over-The-Counter Bulletin Board under the symbol "APDN". The statements made by APDN may be forward-looking in nature and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform 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-KSB, filed on January 15, 2008 and our subsequent quarterly reports on Form 10-QSB. 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.  Contact: Investor:  Applied DNA Sciences, Inc.  Debbie Bailey,  631-444-8090  fax: 631-444-8848  or  Media:  Cameron Associates  Deanne Eagle,  212-554-5463/  or  Web site: http://www.ADNAS.com Source: Applied DNA Sciences, Inc.    We Value Your Feedback   Got comments, questions or suggestions? 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