ADSX Applied Digital Solutions (MM)

$680,000 Contract Covers Completion of Large RFID Antenna System for Tracking Fish in Columbia River Basin SO. ST. PAUL, Minn., Oct. 13 /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 had received a $680,000 contract extension from the Bonneville Power Administration to complete the development of a large RFID antenna detection system for tracking fish in the Columbia River basin. The new contract brings the total value of the antenna project to more than $1.4 million. The basin antenna system, with antennas being constructed at a minimum size of 16 feet by 16 feet, could be the largest RFID system in the world. It also includes the development of new readers and new implantable tag enhancements for tracking fish in the area. Digital Angel is a leader in developing large RFID antenna systems that, despite their size, can detect and read the standard fisheries encapsulated tags that are only 12 millimeters long, said Digital Angel Chief Executive Officer Kevin N. McGrath. "This new contract extension is another endorsement of the use of our RFID technology for tracking and reporting the movement and behavior patterns of fish in rivers throughout the northwestern portion of the U.S.," McGrath said. "When completed in the third quarter of 2006, this RFID antenna detection system will be an invaluable tool for the government, and the environmental community, for understanding the behavior of fish in one of the most important habitats in the world. We look forward to our continuing relationship with the Bonneville Power Administration and to completing this very significant project." Since the early 1990s, Digital Angel has been developing, manufacturing and installing implantable passive integrated transponders and reader systems for the federal Columbia and Snake River hydroelectric projects. For the past two years, the Company has been working on the development of large antenna systems, specifically for the Bonneville Corner Collector, located on the Columbia River in Oregon. 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 humans, pets, 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 55.4% 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) Brian Kennedy (media) 212-691-8087 212-691-8087 DATASOURCE: Digital Angel Corporation CONTACT: Investors, Michael Lucarelli, , or Media, Brian Kennedy, , both of Allen & Caron Inc, +1-212-691-8087, for Digital Angel Corporation Web site: http://www.digitalangelcorp.com/

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