ADSX Applied Digital Solutions (MM)

Digital Angel Corporation Accelerates Plan to Integrate National Animal Identification Compliant Database Database to Work With All Electronic RFID Livestock Tags; Company Plans to Integrate Database as Standard Procedure Within Next Six Months SO. ST. PAUL, Minn., June 27 /PRNewswire-FirstCall/ -- Digital Angel Corporation (AMEX:DOC) an advanced technology company in the field of rapid and accurate identification, location tracking, and condition monitoring of high-value assets, announced today that it has accelerated its plans to introduce a national database system that will provide for the registration, tracking and source verification of all livestock tagged with electronic radiofrequency identification (RFID) tags throughout the United States. The Company's system has been in the planning stages since the first Mad Cow incident in late-December 2003. It is designed to work with all RFID livestock tags, which are compatible and/or compliant with the National Animal Identification System (NAIS) standards. A modest fee will be charged for the registration of each animal. Digital Angel currently sells approximately 30 million livestock tags per year in the United States (and another 20 million internationally), including an expected more than 3 million RFID tags this year. It is hoped by year end the Company will be able to provide access to the system for all new and installed RFID tags. The Company also plans to work with the USDA, NCBA (National Cattleman's Beef Association), the National Pork Producers Council and other industry leaders to make this database (and/or other complementary databases) a standard for the industry, said Digital Angel President and CEO Kevin N. McGrath. "The recent verification of a second cow in the United States with Mad Cow Disease reemphasizes the critical need for a system to track and source verify livestock," McGrath said. "What is lacking is a national database system that will allow any producer of livestock to RFID 'tag' an animal and easily and inexpensively enter information about that animal into the national database. Our system, backed by our nearly 60 years in the livestock tagging business and our international experience in building tagging and scanning technology, is intended to be universally compatible with a system which the United States Department of Agriculture will ultimately define and perhaps deploy as a national identification system for livestock." The database will be housed in the Company's South Saint Paul offices and will be accessible by livestock producers via the Internet. The Company is currently working with other companies that could participate in the deployment of the system. About Digital Angel Corporation Digital Angel Corporation develops and deploys sensor and communications technologies that enable rapid and accurate identification, location tracking, and condition monitoring of high-value assets. Applications for the Company's products include identification and monitoring of pets, humans, fish and livestock through its patented implantable microchips; location tracking and message monitoring of vehicles and aircraft in remote locations through systems that integrate GPS and geosynchronous satellite communications; and monitoring of asset conditions such as temperature and movement, through advanced miniature sensors. Digital Angel Corporation is majority-owned by Applied Digital Inc. (NASDAQ:ADSX). For more information about Digital Angel, please visit http://www.digitalangelcorp.com/. The statements in this press release that are not strictly historical, are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are intended to be covered by the safe harbors created by these sections. The forward-looking statements are subject to risks and uncertainties and the actual results that the Company achieves may differ materially from these forward-looking statements due to such risks and uncertainties, including, but not limited to, that the Company's majority stockholder, Applied Digital, Inc. owns 55.2% of the Company's common stock; that new accounting pronouncements may impact the Company's future results of operation; that the Company may continue to incur losses, that infringements by third parties on the Company's intellectual property or development of substantially equivalent proprietary technology by the Company's competitors could negatively affect the Company's business; that domestic and foreign government regulation and other factors could impair the Company's ability to develop and sell the Company's products in certain markets; that the Company relies on sales to government contractors of its animal identification products, and any decline in the demand by these customers for the Company's products could negatively affect the Company's business; that the Company depends on a single production arrangement for its patented syringe-injectable microchips; that the Company depends on principal customers; that the Company competes with other companies and the products sold by the Company's competitors could become more popular than the Company's products or render the Company's products as obsolete; that the Company's earnings will decline if the Company must write-off goodwill and other intangible assets; that the exercise of options and warrants outstanding and available for issuance may adversely affect the market price of the Company's common stock ;that currency exchange rate fluctuations could have an adverse effect on the Company's sales and financial results; and that the Company depends on a small team of senior management and the Company may have difficulty attracting and retaining additional personnel. A detailed statement of risks and uncertainties is contained in the Company's reports to the Securities and Exchange Commission, including in particular the Company's Form 10-K for the fiscal year ended December 31, 2004. Investors and stockholders are urged to read this document carefully. The Company can offer no assurances that any projections, assumptions or forecasts made or discussed in this release will be met, and investors should understand the risks of investing solely due to such projections. The Company undertakes no obligation to revise any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release. Contact: Allen & Caron Inc. Michael Lucarelli (investors) Len Hall (media) 212-691-8087 949-474-4300 DATASOURCE: Digital Angel Corporation CONTACT: Investors, Michael Lucarelli, +1-212-691-8087, , or Media, Len Hall, +1-949-474-4300, , both of Allen & Caron Inc., for Digital Angel Corporation Web site: http://www.digitalangelcorp.com/

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