ADSX Applied Digital Solutions (MM)

iChip Corporation to distribute the full VeriChip product line in South Africa DELRAY BEACH, Fla., Dec. 8 /PRNewswire-FirstCall/ -- Applied Digital Solutions, Inc. (NASDAQ:ADSX) and its subsidiary, VeriChip Corporation ("VeriChip"), announced today that iChip Corporation has acquired the distribution rights for all VeriChip radio frequency identification (RFID) products in South Africa, including VeriMed for patient identification, Roam Alert for wander prevention, HUGS for infant protection, and ToolHound. The three-year agreement is valued at US$750,000 and represents the first international deployment for the patient identification and medical information system. Erich Taljaard, President of iChip Corporation commented, "Although RFID was originally designed to streamline supply chain management, its utility has gained widespread acceptance in many industries, especially within healthcare." Citing a recent study from BCC Research titled 'RFID: Technology, Applications and Market Potential,' Taljaard added, "The global market for RFID hardware, middleware and IT reached US$640 million in 2005. In 2006, the global market is projected to grow to more than US$713 million, and is forecasted to reach $1 billion by 2011, an average annual growth rate of 8.0 percent." Taljaard believes the South African market is well suited for a wide variety of RFID solutions and thus acquired the distribution rights for all VeriChip products. Taljaard continued, "We have already had our first success with Afri-Tool South Africa, a division of AMECO, the fleet management and construction support unit of Fluor Corporation. We will be implementing VeriChip's Toolhound system at a Fluor site in Madagascar. The cost of the system will be quickly recovered by reducing losses due to theft, duplication, hoarding and misplaced tools. ToolHound will help maximize utilization of business tools and equipment, making workers more accountable and productive." iChip Corporation will also be distributing the VeriMed Patient Identification System in the South African market. The VeriMed patient ID system had a positive response at the 11th International Convention of Telemedicine held in the Cape International Convention center on the 27th and 28th of November with more than 200 delegates attending the convention. The benefits of theVeriMed system have been received favorably when introduced to the leading healthcare organizations representing hospitals, health insurers and physicians. "Given the unique issues and challenges in the South African healthcare market, the VeriMed system has the ability to make a meaningful difference in lives of many South Africans," Taljaard said. About iChip Corporation iChip Corporation, headquartered in Moreleta Park, Pretoria, South Africa develops, markets and sells active and passive radio frequency identification, or RFID, systems used to identify, locate and protect people and assets. iChip Corporation, by acquiring the distribution rights for all RFID products manufactured by VeriChip Corporation, intends to become the leading provider of RFID systems for people in South Africa. More information on iChip Corporation can be found online at http://www.ichipcorp.co.za/. Contact the corporate office of iChip Corporation in Pretoria at T +27 12 997-4549 or online at . About Applied Digital - "The Power of Identification Technology" Applied Digital develops innovative identification and security products for consumer, commercial, and government sectors worldwide. The Company's unique and often proprietary products provide identification and security systems for people, animals, the food supply, government/military arena, and commercial assets. Included in this diversified product line are RFID applications, end-to-end food safety systems, GPS/Satellite communications, and telecomm and security infrastructure, positioning Applied Digital as the leader in identification technology. Applied Digital is the owner of a majority position in Digital Angel Corporation (AMEX:DOC). About VeriChip Corporation VeriChip Corporation, headquartered in Delray Beach, Florida, develops, markets and sells radio frequency identification, or RFID, systems used to identify, locate and protect people and assets. VeriChip's goal is to become the leading provider of RFID systems for people in the healthcare industry. VeriChip sells passive RFID systems for identification purposes and active RFID systems for local-area location and identification purposes. VeriChip recently began to market its VeriMed(TM) Patient Identification System for rapidly and accurately identifying people who arrive in an emergency room and are unable to communicate. This system uses the first human-implantable passive RFID microchip, the implantable VeriChip(TM), cleared for medical use in October 2004 by the United States Food and Drug Administration. For more information on VeriChip, please call 1-800-970-2447, or email . Additional information can be found online at http://www.verichipcorp.com/. Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and the Company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Contact: Investors: Nick Laudico The Ruth Group 646-536-7030 Media: Jason Rando The Ruth Group 646-536-7025 DATASOURCE: Applied Digital Solutions, Inc. CONTACT: Investors - Nick Laudico, +1-646-536-7030, , Media - Jason Rando, +1-646-536-7025, , both of The Ruth Group Web site: http://www.verichipcorp.com/

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