ADSX Applied Digital Solutions (MM)

Need for Complete Canine History Prompts Use of Microchips; 'Chipped' Team Deployed in Afghanistan, Pakistan SO. ST. PAUL, Minn., Jan. 18 /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 the United Network for Worldwide Disaster Aid (UNWDA), an internationally-known, EU-based team of experts deployed at catastrophic events throughout the world, has selected the Company's implanted electronic RFID microchips for its specially-trained canine search and rescue teams based in diverse countries. To date, a total of 49 of the group's 178 dogs have been implanted with the Digital Angel microchip and many of the "chipped" dogs have recently been deployed in emergency aid areas including Afghanistan, Pakistan, the Caribbean and China. The UNWDA organization, which has canine units connected to 22 countries around the world and has deployed dogs to catastrophes of the magnitude of the New York 9/11 disaster and last year's tsunami in Asia, had previously used tattoos to identify their dogs. UNWDA switched to the implanted microchips because of the need for access to a variety of information about the individual animals, said Dr. S. Eynn, spokesperson for the organization's coordination center in Brussels. The Digital Angel microchip was selected after a careful review of other similar microchips available on the international market, she added. "These dogs are typically deployed under extremely harsh conditions and we noticed that the chips worked well without encountering any kind of damage," said Dr. Eynn, adding that the Digital Angel chips' BioBond(R) anti-migration cap prevented the chips from migrating in an animal's body. "We also found very practical the Digital Angel syringe design and the fact that the company has global distribution. Perhaps most importantly, we also wanted a company that is continuing to research and develop new products and we are confident that Digital Angel will maintain its edge in technology into the future." The implanted microchip allows a handler access to the identification of the dog as well as such critical details as its age, medical information (vaccinations, wounds, surgical history), and other data such as training, previous missions, tendencies in behavior, the types of environments it prefers, how it reacts to emotional or physical rewards and even its psychological profile. "This is invaluable information to a handler who needs access to it at crucial moments," Dr. Eynn emphasized. Digital Angel CEO Kevin McGrath said the use of the microchips in the canine units is another demonstration of the value of noninvasive, implantable, electronic devices for identification, quick data access, clinical history and a variety of medical uses. "One of the significant values of these implantable chips lies in their unique ability to provide easy access to critical information anytime, but particularly in times of crisis," McGrath said. "Being selected by this organization is another validation of our technology and the faith the world has in our products and service. We look forward to working closely with the UNWDA and will continue to develop innovative, next generation products that will help them do the incredible work they do." About the United Network for Worldwide Disaster Aid Worldwide Disaster Aid, an international aid organization headquartered in Sweden, has its Worldwide Operations Coordination Center in Geneva, Switzerland and Resources Coordination Center in Brussels, Belgium. It operates the United Network for Worldwide Disaster Aid, a global network connecting and coordinating global, local and regional resources with the added support of international special missions, all with the sole purpose of preventing and assisting in any situation in which a large quantity of lives may be at risk, following the motto branded on the doors of the UNWDA Center for Missions Coordination: "At any place, at any time...". Since 2001, the United Network for Worldwide Disaster Aid has been integrated into the United Network for Universal Aid (UNNET) together with other international aid organizations. 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, , 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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