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object—in an unprecedentedly low cost and easy-to-use form factor. Their system recognizes approximately 700 colors that are NOT visible to the human eye.

More important, this breakthrough optical sensing and data capture technology called Spectral Pattern Matching (SPM) reads at the molecular level. We are aware of no other technology with this capability at field unit prices less than $10.

Most existing automated authentication technologies—RFID tags, retinal/fingerprint scanning—are significantly more expensive to implement, less accurate, or both.

SPM technology can be miniaturized and is easily integrated into a variety of hand-held or fixed-mount configurations, and can be combined in the same package as a bar-code or biometric scanner.

Visualant’s breakthrough spectral sensor technology has the very real potential, in our judgment, to become pervasive in the authentication and automated ID application marketplace.

In a global economy with growing threats to

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    Trade secrets/Access ControlChina and emerging markets espionage

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    Government Secrets/Access ControlWiki leaks et al

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    Intellectual Property Theftimitation/fake consumer products

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    Drug and Food Counterfeiting/ Tampering—from China and third world markets into G-20 countries

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    Currency/Document Forgeryrampant in every major country

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    Illicit Substance interdiction—in every major country

Visualant’s highly accurate and amazingly low- cost solution addresses a $20 billion market opportunity that is growing in cost and damage every single day.


Multiple Sector Application and Licensing Opportunities

Visualant’s transformative technology is not only applicable to the large security and authentication marketplace. Visualant’s SPM technology is also a powerful diagnostic tool that has applicability to the medical, agricultural, environmental and other markets.

The company just announced its first license focused on exploiting SPM technology for use in environmental diagnostics. We strongly believe that other licenses will follow over time. Indeed, an SPM license in a diagnostic field could provide potential revenues which could dwarf Visualant’s significant opportunity in the security and authentication market.

In medical diagnostics, for instance, an SPM-enabled hand held device appears to be capable of “seeing” blood sugar characteristics in the human body and thus able to read blood sugar levels without a blood sample. For 150 million people worldwide with Type 2 diabetes this would be a game changer. For health plans seeking compliance with blood sugar reducing medicines, taking a blood sugar reading and sending it to a database with “one-click” of a $10 VSUL reader is a game changer and a billion- dollar improvement in care.

This is just one application—we can imagine hundreds of other applications in medical treatment compliance and diagnostics alone.

The Javelin LLC License 2011

VSUL recently licensed their SPM technology with a leading Environmental Technology company Javelin LLC out of Seattle.

According to executives at Javelin, Visualant’s SPM technology, with its ability to map color at the photon level both within the humanly visible spectrum as well as in the near infra- red and near ultra-violet ranges, can be used as a diagnostic tool for a host of environmental


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