ADSX Applied Digital Solutions (MM)

System Transmits Key Helicopter Performance Data to Help Ensure Safety of Military Helicopters in Flight SO. ST. PAUL, Minn., May 11 /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 its OuterLink subsidiary was honored this week by the American Helicopter Society (AHS) for OuterLink's In-Flight Reporting System, a real-time, satellite-based data communications system being used by the U.S. Navy to help ensure the safety of its pilots, among other attributes. OuterLink was part of a team that received the prestigious Harry T. Jensen Award for 2005 at a ceremony Wednesday for creating a monitoring system for the U.S. military that records the mechanical performance of a helicopter, including its engine, rotors, driveshaft and other mechanical parts, and transmits that information to ground officials while the aircraft is in flight. The OuterLink In-Flight Reporting System is the communication link that transmits the mechanical data by satellite to the flight operations center so military officials can track how the helicopter is performing in the air and, if necessary, immediately ground the aircraft before any catastrophic event. The AHS noted that the overall system "added far-reaching capabilities to military health and usage monitoring systems." Paul F. Newcomb, President of OuterLink Corporation, said the In-Flight system is currently being used by commercial helicopters and fixed wing aircraft for tracking and flight following, but this is the first time it has been integrated into a mechanical monitoring system. The monitoring system is currently being used by the U.S. Navy on its SH-60B helicopters and the potential exists for implanting it on a fleet-wide basis throughout the military, Newcomb added. "This system has significant added value potential," Newcomb said. "It is an important monitoring system for several reasons and certainly in terms of safety while in flight. But there is also an economic payback in maintenance. It enables flight operations to monitor the performance of the aircraft and determine when proper maintenance should occur, not just base that decision on hours in the air." Newcomb added that four Navy helicopters have sent more than 5 megabytes of data -- representing 89,426 satellite messages -- through the OuterLink system in the past month alone. Other members of the team that created the system included Draper Laboratories, the systems integrator and Goodrich Aerospace, the supplier of the aircraft's mechanical monitoring system. About OuterLink Based in Lowell, MA, OuterLink, a Digital Angel subsidiary, provides satellite-based mobile asset tracking and data messaging systems. Used to manage the deployment of aircraft and land vehicles, these systems provide real-time location reporting, secure bi-directional data communication and comprehensive asset management software. They enable ground personnel to track the minute-by-minute movement of mobile assets, monitor on-board sensors and conduct bi-directional messaging with aircraft pilots and ground vehicle operators. For more information, visit http://www.outerlink.com/. 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 Applied Digital Inc. owns 55.4% of the Company's common stock; that new accounting pronouncements regarding expensing of share based compensation may impact the Company's future results of operations, the Company may continue to incur net losses, infringement by third parties on the Company's intellectual property or development of substantially equivalent proprietary technology by the Company's competitors could negatively impact the Company's business, domestic and foreign government regulation and other factors could impair the Company's ability to develop and sell its products in certain markets, the Company relies on sales to government contractors for its animal identification and search and rescue beacon products, and any decline in the demand by these customers for such products could negatively affect the Company's business, the Company depends on a single production arrangement for its patented syringe-injectable microchips, and the loss of or any significant reduction in the production could have an adverse effect on the Company's business, technological change could cause the Company's products to become obsolete, the loss of one of the Company's principal customers could negatively impact the Company's net revenue, the Company's earnings will decline if the Company writes off goodwill and other intangible assets, options and warrants outstanding and available for issuance may adversely affect the market price of the Company's common stock, currency exchange rate fluctuations could have an adverse effect on the Company's sales and financial results, the Company depends on a small team of senior management. 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, 2005. 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. Mike Lucarelli (investors) Len Hall (media) (212)-691-8087 (949)-474-4300 DATASOURCE: Digital Angel Corporation CONTACT: investors, Mike 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/ http://www.outerlink.com/

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