ADSX Applied Digital Solutions (MM)

First Shipments of Tags to World's Largest Processor of Pig Products Has Begun SO. ST. PAUL, Minn., Dec. 15 /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 has received a purchase order from Smithfield Foods Inc., the world's largest pork producer, for 1.1 million visual ear identification tags for Smithfield's swine operations in Poland. The first shipments of the visual tags to Smithfield began this month and the remainder will be shipped on a monthly basis. The order calls for Digital Angel's Denmark-based subsidiary, Daploma International, to deliver the tags to the various farms Smithfield owns and operates throughout Poland. Digital Angel is working with PPA POLNET, Poland's largest tag distributor, on the Smithfield account. European Union regulations require that all pigs, cattle and livestock throughout Europe, including Poland, be tagged for identification and traceability purposes. While the requirements allow tattooing of pigs, Smithfield has chosen to use visual tags to insure better traceability. "This is a significant order from Smithfield and obviously a very important milestone for Digital Angel," said Digital Angel CEO Kevin McGrath. "Smithfield is a respected and innovative leader in meat processing throughout the world and is known for the quality of their products. We are proud they have chosen us as a supplier to help them in that effort. We look forward to working closely with them and demonstrating our ability to provide the best in identification and traceability services." McGrath added that the order from Smithfield demonstrates the value of Digital Angel's recent purchase of Daploma and the importance of the Company's global reach. "Livestock tagging and tracking is a global business and we are working diligently to capture significant portions of the market all over the world," McGrath said. "There is no question that Eastern Europe, in addition to North and South America, is an important market and we believe this new relationship with Smithfield bodes well for our future in that part of the world." 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, +1-212-691-8087, , or Media, Brian Kennedy, +1-212-691-8087, , both of Allen & Caron Inc for Digital Angel Corporation Web site: http://www.digitalangelcorp.com/

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