DNAprint Genomics (DNAG)

[SlopsterSlasher]

DougS, I hope this helps; DNAPrint's approach to commercializing its products is unique. The Company
had originally adopted the "partner early and partner often" approach, and its relationship with Orchid is an example of this approach in action. While the Company may still take this approach, it has learned that maximum shareholder
value will in many cases be a function of its ability to develop, validate and market its own tests independently as a first step. For some products, the Company believes that marketing will be most economically and effectively
undertaken by those with established product development infrastructures who have done it many times before. Partnering a product with an expert organization
for market penetration, testing and validation is a good way for DNAPrint to free itself of these tasks so that its scientists can develop new products. In this way, the Company can increase the number of revenue generating products in
its portfolio at the maximum rate. Partners who agree to commercialize DNAPrint's products are taking much of the risk associated with the regulatory unknowns out of the Company's hands. DNAPrint is unwilling, however, to obtain
these advantages on terms that diminish the value its research brings to shareholders. Whether a test is partnered or retained for in-housecommercialization is decided on a product-by-product case.

If the Company is unable to reach suitable license terms with prospective partners, its shareholders would be best served if it holds its discoveries closely. In this case, the Company may exclusively provide services using its
products. Alternatively, the Company can mass produce its tests through an OEM partner, and license genetic service providers to perform the actual testing. Genetic service providers tend to be smaller companies than platform providers, and as a result, the Company believes the Company would have the opportunity to negotiate significantly higher royalty percentages. DNAPrint will attempt to strike a balance between the two types of license models in order to maximize shareholder value.