ADSX Applied Digital Solutions (MM)

Order for $550,000 in RFID Tags, Scanners to Assist Tracking of Infected Animals with Chronic Wasting Disease in Captive Cervid Herds SO. ST. PAUL, Minn., Oct. 4 /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 it had received another order from the U.S. Department of Agriculture (USDA) for the Company's proprietary RFID (radiofrequency identification) traceability system to help the government's ongoing effort to eradicate Chronic Wasting Disease (CWD) in captive cervids. The latest order, valued at more than $550,000, covers the purchase of electronic tags and scanners and brings the total value of orders for the programs to more than $750,000. The tags and scanners are designed to identify individual animals in the national captive cervid (deer and elk) population. The Digital Angel system is similar to the one the Company is currently using in the companion pet, livestock, and salmon industries in the U.S., Canada and other parts of the world. Digital Angel competed for a contract to supply electronic identification devices for the USDA CWD program. The USDA contract was previously announced by Digital Angel in October 2003 but was postponed after competitors protested the award. The protests were overturned by the USDA and Digital Angel received its first order for its RFID system in December 2004. "We are very pleased to have secured another purchase order from the USDA and to continue working closely with the agency," said Digital Angel Chief Executive Officer Kevin McGrath. "We believe our technology will be useful in this effort to eradicate Chronic Wasting Disease as well as other economically significant diseases. A significant number of our scanning products in 2005 have been acquired by local state, USDA and Canadian government agencies to identify animals for disease monitoring and identification initiatives." About Chronic Wasting Disease Chronic wasting disease is a fatal neurological disease found in deer and elk. It belongs to a family of diseases known as transmissible spongiform encephalopathies or prion diseases. The disease attacks the brains of infected deer and elk, causing the animals to become emaciated, display abnormal behavior, lose bodily functions and die. Besides being found in captive deer and elk, the disease has also been found in wild deer and elk in 10 states and two Canadian provinces. 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 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) 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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