ADSX Applied Digital Solutions (MM)

Digital Angel Corporation Announces Launch of Its Proprietary RFID Cattle-Tracking Products in Canadian Market Through Distribution Agreement With Compass Animal Health, Company Addresses the Canadian Cattle Identification Agency's Announcement to Adopt RFID Technology for Their National Cattle Identification Program by January 1, 2005 SO. ST. PAUL, Minn., March 31 /PRNewswire-FirstCall/ -- Digital Angel Corporation , an advanced technology company in the field of rapid and accurate identification, location tracking, and condition monitoring of high-value assets, today announced that it will begin marketing a broad range of radio-frequency identification (RFID) cattle-tracking system products in Canada under its distribution arrangement with Compass Animal Health Inc., a private company based in Edmonton, Alberta. Highlighting its commitment to the Canadian market, Digital Angel will officially launch the full line of Destron(R) Technologies cattle and swine electronic identification products, including RFID (radio frequency identification) ear tags and scanners, to a select group of veterinarians and farm supply retailers at a trade show sponsored by Compass Animal Health to be held in Calgary, Alberta, Canada during April 3 and 4, 2004. Zeke Mejia, Digital Angel's Chief Technology Officer, commented, "Digital Angel has worked hard to get our RFID products validated in support of the initiative by The Canadian Cattle Identification Agency (CCIA) to make the transition to RFID ear tags for their national cattle identification program on January 1, 2005. We have been testing the retention, readability and overall functionality of our products and systems in tag trials and projects for the last four years in anticipation of the implementation of RFID technology. It has been a long-term investment of time, money and technical resources into this very important market, and we believe it has proved extremely worthwhile. Our RFID ear tag is one of two electronic ear tags available for use in 2004." Digital Angel's Chief Executive Officer, Kevin McGrath, stated, "This is a crucial time for Canada's beef industry, and we believe that Digital Angel's cattle-tracking systems can play an essential role in enhancing confidence in the international beef markets as Canada extends its trade with its international partners, and we hope to make a substantial contribution to the Canadian marketplace with our cattle-tracking systems." Julie Stitt, General Manager of CCIA, stated, "In addition to its RFID ear tags, Digital Angel's ISO-compliant scanners have demonstrated satisfactory performance in tag trials conducted at feedlots and at packing plants. Digital Angel has assured us that it is committed to developing a fullsuite of products to meet the scanning requirements of our marketplace in order to assure the success of CCIA's transition to RFID in January 2005." The CCIA is a not for profit industry-led agency which was established to implement a national cattle identification program in Canada. Since 2002, Canada has approximately 122,000 cattle producers, with a total cattle inventory of 14.7 million head and producing approximately 3.6 billion pounds of beef and beef products annually. According to Stitt, the CCIA has long recognized that RFID would be an important element in the overall success of its national cattle identification program. The CCIA's goal is to enhance its cattle traceback system featuring scanners with dependable performance and complete system compatibility to read CCIA approved electronic tags. About Compass Animal Health Inc. Based in Edmonton, Alberta, Canada, Compass Animal Health Inc. is a major wholesale distributor of animal health care and livestock related products. For further information, please visit: http://www.compass-ah.com/. About The Canadian Cattle Identification Agency The Canadian Cattle Identification Agency (CCIA) is a not for profit industry-led agency incorporated to establish a national cattle identification program in Canada and designed to promote beef consumption through assurance and efficient traceback and containment of serious animal health and food safety problems. For further information, please visit: http://www.canadaid.com/index.shtml. 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 pets, fish 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 Solutions, 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 recent changes in the Company's senior management could have an adverse effect on the Company's financial results that theCompany's stockholders will experience dilution if certain debt owned by the Company is converted into common stock; the risk of foreclosure on substantially all of the Company's assets; that the Company's majority stockholder, Applied Digital Solutions, Inc. is able to completely control the board of directors and may support actions that conflict with the interests of other stockholders; that the Company's earnings will decline if it writes off additional goodwill and other intangible assets; that exercises of the Company's options and warrants outstanding and available for issuance may adversely affect the market price of the Company's common stock, the Company's inability to generate income, the Company's Wireless and Monitoring segment's ability to achieve profitability, the Company's ability to maintain patent and trade secret protection, domestic and foreign government regulation, the Company's sales to government contractors of animal identification products, dependence on a single production arrangement for its patented syringe-injectable microchips, dependence on principal customers, competition in the visual and electronic identification markets, foreign currency rate fluctuation, dependence on a small team of senior management and the Company's ability to develop, integrate, miniaturize and market the Digital Angel(TM) technology. 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, 2003. 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. For further information please contact: investors, Jay F. McKeage, +1-212-691-8087, , or media, Len Hall, +1-949-474-4300, , both of Allen & Caron Inc, for Digital Angel Corporation. DATASOURCE: Digital Angel Corporation CONTACT: investors, Jay F. McKeage, +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.compass-ah.com/ http://www.canadaid.com/index.shtml http://www.digitalangelcorp.com/

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