Digital Angel Corporation Receives Government Approvals to Operate in Uruguay and Chile, Key Components of MERCOSUR Common Marke
December 12 2005 - 7:25AM
PR Newswire (US)
Initial Orders of 80,000 Tags Have Been Received SO. ST. PAUL,
Minn., Dec. 12 /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
received government approval from Uruguay and Chile to operate in
those countries, further expanding the Company's presence in the
rapidly expanding livestock markets of South America. Digital Angel
already has offices in Argentina and Brazil and there are currently
more than 200 million cattle raised in the region. "These countries
are significant not only because they are important areas for
livestock, but also because they are part of the MERCOSUR common
market, a trading block of six countries representing more than
two-thirds of South America's population and a GDP of more than $1
trillion," said Digital Angel President and CEO Kevin McGrath. The
MERCOSUR countries include Argentina, Brazil, Paraguay, Uruguay,
Chile and Bolivia. To date, Digital Angel has sold approximately
30,000 electronic RFID livestock tags in Chile and nearly 50,000
visual livestock tags in Uruguay. The Company, which announced last
month that it had sold more than 1.1 million livestock tags in
Argentina alone in 2005, including more than 400,000 in recent
weeks, exceeded its sales guidance for all of South America of 1
million livestock tags sold during the year. McGrath said the new
operations in Uruguay and Chile are important components in the
Company's global strategy as well as in its effort to be the
leading tag supplier throughout all of the Americas. The new
operations also complement the Company's existing operations in
Argentina and Brazil, he noted. "South America is an important and
rapidly growing livestock market, which makes these government
approvals significant milestones for Digital Angel," McGrath said.
"We have already had a very good year in the region and the
addition of our presence in Uruguay and Chile promises to make the
future that much better. With the move toward traceable beef in the
EU, Japan and the United States, South American beef producing
countries understand the importance of tagging, tracking and
identifying their animals, particularly if they want to sell into
the global market, which is one of the reasons why our products are
being so well received. Given our success to date, we intend to
manufacture livestock tags in the region in 2006." 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, poultry 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, +1-212-691-8087, , or Media,
Brian Kennedy, +1-212-691-8087, , both of Allen & Caron Inc for
Digital Angel Corporation Web site:
http://www.digitalangelcorp.com/
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