ADSX Applied Digital Solutions (MM)

First RFID Microchip to Determine Animal's Temperature Currently on Sale in UK, Japan, and South Africa SO. ST. PAUL, Minn., April 10 /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 U.S. Patent and Trademark Office has granted the Company a patent for its Bio-Thermo(R) (temperature-sensing) implantable RFID microchip, a syringe-implantable microchip designed for non-laboratory applications that uses RFID technology to determine the body temperature of its host animal. Potential applications for the BioThermo chip include non-invasive monitoring of temperatures in cats, dogs, livestock and horses and early detection of infectious diseases such as Avian Bird Flu in poultry. Patents covering the same Bio-Thermo RFID technology are also currently pending in several other countries. The patented technology covers a passive transponder, a sensor and integrated circuit that together make it possible for someone with a scanner to determine the body temperature of an animal implanted with the Bio-Thermo RFID microchip. The Bio-Thermo microchips are currently being sold in the companion pet market in the United Kingdom, Japan, and the Philippines. The Company is currently in discussions with South Africa, Israel and Australia as well. In the equine market the Bio-Thermo microchips are currently being sold in South Africa and the Company is currently in discussions with Japan as well. "The Bio-Thermo microchip represents an important advance in the field of animal health," said Digital Angel President and CEO Kevin N. McGrath. "The technology allows veterinarians and animal owners to quickly, simply and accurately monitor changes in the temperature of an animal, which is often a reliable indicator of wellness. The chips are already being well-received in markets around the world and we look forward to introducing the chip in the pet and other animal markets in the U.S." Digital Angel has begun marketing the chips in the US equine market, and is preparing to launch sale of the Bio-Thermo microchips for the US companion animal market. In connection with planned launch for the companion animal market, the Company is planning to sponsor a study to test and document the correlation between the temperature measured by the subcutaneous microchip with other common forms of temperature measurement. This study is being discussed with the University of Minnesota College of Veterinary Medicine. The patent, No. 7,015,826, was granted in March and is titled "Method and Apparatus for Sensing and Transmitting a Body Characteristic of a Host." 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, Applied Digital Inc. owns 55.4% of the Company's common stock, 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 assts, 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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