ADSX Applied Digital Solutions (MM)

SO. ST. PAUL, Minn., July 25 /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 SARBE(R) Division of its London-based subsidiary, Signature Industries, has received an additional order from the UK Ministry of Defense for high-performance replacement batteries for the SARBE 7 Search and Rescue Beacon. The order, valued at $350,000, followed the original $800,000 order announced in May and delivery is required during 2006. The SARBE Division of Signature Industries manufactures a complete line of military search and rescue beacons and has worked with the UK Ministry of Defense for more than 50 years. Signature, which made the strategic decision to move into battery manufacture in the fall of 2005, has created a specialized line of 406MHz lithium manganese dioxide batteries for search and rescue beacons that have a shelf life of five years and can operate continuously for 24 hours at temperatures as low as minus 20 degrees C. Digital Angel President and Chief Executive Officer Kevin N. McGrath said: "Our decision to manufacture specialized military batteries has already begun to pay off, based on the decision by the UK Ministry of Defense, one of our oldest and most treasured customers, to increase its recent order. In addition, our own innovative manufacturing process has led to reduced cost, increased productivity, certainty of supply for our customers and a better capability against competition. The expanding program to replace existing search and rescue beacons with our line of batteries by February 2009 provides us with major opportunities." 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 Michael Lucarelli (investors) Len Hall (media) 212-691-8087 949-474-4300 DATASOURCE: Digital Angel Corporation CONTACT: investors, Michael 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/

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