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Visualant Completes Delivery of First Product Run of ChromaID SDKs

January 30, 2014

Visualant, Inc., a provider of disruptive light-based technologies, announced it has completed the delivery of the first production run of its ChromaID software development kit (SDK), putting the new technology into the hands of some of the world's top inventors and engineers across multiple industries.

The Company said that ChromaID is a light-based identification and measurement technology with the potential to disrupt traditional spectral analysis and other costly methods of identification, authentication and diagnosis.

In a release, Visualant said the ChromaID system consists of software and a scanner (handheld or fixed mount) that uses Visualant's Spectral Pattern Matching (SPM) technology to direct structured light onto a surface, material, or through a liquid or gas, creating and capturing a "unique" marker or "ChromaID" that is invisible to the human eye.

This patented technology is disruptive because for the first time it is possible to effectively conduct identification, authentication and diagnostics in the field that could previously only be performed by large and expensive lab-based equipment and technicians.

The first production run of the ChromaID SDKs underwent extensive testing prior to shipment. After testing was complete, last fall development kits were initially shipped to Visualant's strategic partner, Intellectual Ventures (IV), and inventors in the IV Invention Network (IVIN). Visualant and IV have formed a strategic partnership to advance the commercialization of Visualant's patented ChromaID technology through product applications and IP development.

Then recently, the remaining SDKs produced from the first production run were shipped to several companies around the world. The recipients include an international plastics packaging company, a company that provides authentication for critical semiconductors, a pharmaceutical supply chain company, and a medical waste disposal company.

Each of the companies has their own potential specialized applications:

-The international plastics packaging producer is looking to use ChromaID signatures to match their customers' exact color requirements to a color library for the packaging and containers being produced. Their first attempt with traditional, "less sophisticated" spectrometry resulted in incorrectly colored containers, whereas initial tests with ChromaID have proven successful. The anticipated cost savings from this one manufacturer is more than $1 million annually in reduced waste.

-The authentication company working on semiconductor counterfeiting protection is exploring the use of ChromaID in combination with chemical coding for a two-step authentication application. This application would be much faster and more cost effective than using traditional verification methods. A recent Senate Armed Services hearing concluded there are more than 1 million counterfeit parts in critical Defense Department equipment and systems.

-The pharmaceutical supply chain company is working to apply ChromaID to its high speed pill sorting process in order to detect pills that should not be in the batch being processed and ensure a high level of quality control through the sorting and counting process. The potential health damage and liability from ingesting the wrong medicine is estimated to be $300 million annually in North America alone. Globally, counterfeit pharmaceuticals are more than a $75 billion industry causing one million deaths annually.

-The medical waste company is testing the use of ChromaID to confirm the authenticity of unused controlled substances that are required, by law, to be disposed of with verification. As much as 8 percent of controlled substance medications are diverted or stolen in hospitals. This application could significantly reduce that amount.

These and other markets provide opportunities for the deployment of potentially millions of Visualant ChromaID sensors across hundreds of applications.

"We've been realizing tremendous success in getting our revolutionary ChromaID technology into the labs of the world's most innovative companies and establish a strong pipeline of potential commercial applications," said Visualant's founder and CEO Ron Erickson. "As these companies confirm ChromaID's unique ability to identify, authenticate and diagnose more efficiently and affordably, we expect this to translate into licensing and sales over the coming months."

The next production run of ChromaID SDKs is currently underway, and the company plans to deliver more than 75 SDKs by year end. The demand for the SDKs currently exceeds supply, with Visualant focusing on delivering kits to global companies that have the capacity to develop large scale ChromaID applications.

Intellectual Ventures (IV) collaborates with inventors, partners with pioneering companies and invests both expertise and capital in the process of invention.

The Intellectual Ventures Invention Network (IVIN) is a collaborative community of scientific and technical experts, inventors and entrepreneurs who work together to create, improve and evaluate inventions.

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