ADSX Applied Digital Solutions (MM)

Systematic Tracking and Sourcing of Livestock Can Help Restore Confidence After Growing International Pressure, Recent Mad Cow Confirmation in Canada SO. ST. PAUL, Minn., Jan. 24 /PRNewswire-FirstCall/ -- Digital Angel Corporation (AMEX:DOC) today reiterated its proposal for a comprehensive national electronic RFID solution to satisfy renewed interest in a program that will quickly identify and track animals of interest in an animal health incident such as an outbreak of Mad Cow Disease. The system includes electronic RFID (radiofrequency identification) tags and scanners which work in conjunction with various databases to register the livestock information. It can quickly isolate any problem discovered in an animal from birth through slaughter and distribution. In both 2005 and 2006, the United States Congress (through annual appropriations bills) acknowledged RFID technology and specifically Digital Angel's RFID technology as a viable and logical solution to the country's health concerns related to Mad Cow and other infectious diseases. Commenting on the system, Kevin N. McGrath, President and Chief Executive Officer of Digital Angel Corporation stated: "With growing international pressure stemming from Japan's overly cautious renewed ban on U.S. beef and yesterday's Mad Cow confirmation from Canada, it is clear that a technology solution to global animal health concerns is more necessary and more relevant than ever. We know that our system can immediately assist the industry and government in adopting standards satisfactory to all. We know this because of our involvement in numerous USDA-sponsored pilot projects over the past year as well as successful implementation of the system in real livestock environments in the United States and Canada. We urge the USDA to work with us, the industry and the National Cattleman's Beef Association toward rapid implementation of an RFID solution to satisfy global animal health concerns." Digital Angel, which has been in the livestock tagging business for nearly 60 years, currently sells approximately 30 million livestock tags per year in the U.S. (and another 20 million internationally). 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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