Digital Angel Market Opportunity for Cattle Tagging Expands With Decision By Canadian Government
June 15 2006 - 9:40AM
PR Newswire (US)
Company Receives Approval for New Reader and Antenna as Canada
Extends, Expands Funding of RFID Scanning Equipment for Livestock
Tracking SO. ST. PAUL, Minn., June 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 the market opportunity for its Radio Frequency
Identification (RFID) tags (e.Tags(TM)) and scanning systems has
grown significantly due to the Canadian government's recent
decision to extend a national program through December 2007 for the
funding of livestock RFID readers and scanning systems. The
government-backed program is part of Food Safety and Quality within
Agri-Food Canada to reimburse eligible participants by defraying a
part of the cost of RFID equipment used to scan electronically
identified animals as they move from farm to market. Canada is
moving towards electronically tracking cattle and livestock. Cattle
are identified in a mandatory industry-led program instituted in
January 2001. Canada is attempting to revitalize the country's
struggling beef industry that had been damaged by its first case of
Mad Cow Disease. Digital Angel, a pioneer in animal RFID products,
is one of a few companies with electronic RFID ear tags approved
for the program after testing by the Canadian Cattle Identification
Agency (CCIA). The government's decision to extend this funding
initiative should bolster an already robust electronic cattle
tagging business in Canada, said Digital Angel President and CEO
Kevin N. McGrath. The Company announced in January that it had
delivered more than 265,000 e.Tags to its Canadian distributors
during the months of November and December 2005. Digital Angel just
received CCIA Conditional Approval of a new reader and antenna for
use in scanning livestock predominantly in an auction market
facility. This new system provides auto-tuning, synchronization,
high speed data transfer, memory backup, portability and
customization to exiting facilities. "This is a meaningful move by
the Canadian government and tremendous news for Digital Angel and
our e.Tag system business," McGrath said. "We experienced very
strong sales in Canada last fall thanks in large part to this
government and industry backed program. This program extension
should mean an increase in demand for electronic ear tags and
scanning systems in the months to come as the industry adapts to
this evolving technology. The Canadian government clearly sees the
need for a national cattle identification and traceability program
that can help ensure the quality of their beef products." A
database of Canada's approximately 122,000 cattle producers, which
has a total cattle inventory of 14.7 million head of cattle that
produce approximately 3.6 million pounds of beef and beef products
annually, is already in place. The full line of Destron
Technologies cattle electronic identification products manufactured
by Digital Angel were approved by the CCIA. Under the new program,
eligible participants are reimbursed up to 50 percent of the cost
of eligible RFID readers, up to $1,000 for hand-held models and
$3,000 for panel readers. 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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