Digital Angel Electronic RFID Livestock Tag Sales for 2006 Exceed Total Sales for Full Year 2005
September 14 2006 - 7:35AM
PR Newswire (US)
Sales Expected to Reach Approximately 1.9 Million Tags by End of
September SO. ST. PAUL, Minn., Sept. 14 /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 sales of its electronic RFID (radio frequency
identification) livestock tags in Canada and the U.S. are expected
to surpass 1.9 million tags by the end of September which, after
only nine months, is nearly 12 percent higher than the total of 1.7
million sold in all of 2005. The increased sales are generally due
to a greater awareness of the value that electronic tags (e-tags)
provide for livestock traceability, which is fueled in part by the
federal government-sponsored National Animal Identification System,
said President and CEO Kevin N. McGrath. McGrath noted that while
the national system is not due to be fully implemented until 2009,
cattle ranchers are beginning to make the move toward electronic
tagging which allows beef purchasers the ability to know where the
cattle have been throughout their lives. "We are seeing an
evolution in the cattle ranching industry, particularly among the
sophisticated, large cattle buyers, toward electronic tagging,"
McGrath said. "The full adoption of the NAIS program is still in
the future, but beef producers and the general public are much more
aware today of the importance of traceability, particularly given
the issues surrounding Mad Cow Disease and other potential animal
health issues such as Hoof and Mouth Disease. We believe this
general awareness is a trend that is here to stay." The sales
increases are generally coming from Digital Angel's larger U.S. and
Canadian distributors who have traditionally been leaders in
driving the adoption of advances in cattle tagging in the industry,
McGrath added. Canada is also working toward implementing a
national livestock identification system and is further along in
the process than the U.S. McGrath also noted that sales of visual
tags, another key element in Digital Angel's livestock tagging
business, remain strong along with the increase in electronic tag
sales. Many ranchers have both tags on their cattle, he said.
Digital Angel also recently announced that it had begun selling
electronic livestock tags in Brazil, the largest beef exporting
country in the world and home to nearly 200 million cattle. Digital
Angel currently has a livestock tag sales presence in six Latin
American countries including Argentina, Brazil, Chile, Ecuador,
Mexico and Uruguay. 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. 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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