ADSX Applied Digital Solutions (MM)

Tags Manufactured at European Subsidiary Now Registered in Chile as Official Identification Devices SO. ST. PAUL, Minn., April 18 /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 both its visual and electronic RFID (radiofrequency identification) livestock tags have now been approved for sale in Chile. President and Chief Executive Officer Kevin N. McGrath stated: "Chile is an important part of our overall strategy of expanding our business in Latin America and we will be launching a strong push with both visual and electronic RFID tags to gain a significant share of this growing market. Chile and other parts of South America such as Argentina, Brazil and Uruguay have joined the European Union, Japan and the United States in recognizing the value of traceable beef. We are excited about this opportunity to expand our operations in the southern cone of South America and believe Chile will become an important market for us." The approval of Digital Angel's visual Snaptag and electronic Digitag with FDX-B radio frequency technology was granted earlier this month in decree No. 1629 issued by the Chilean Agricultural and Cattle Service agency (Servicio Agricola y Ganadero de Chile). The tags, which are manufactured by the Company's Daploma subsidiary in Denmark, are now registered in Chile as Official Individual Identification Devices (DIIOs), a mandatory requirement in the Chilean cattle registration system. Since launching its business in Chile in mid-2005, Digital Angel has sold to date more than 35,000 electronic tags in that country and over the same period it has sold or received firm orders for approximately 2.4 million livestock tags in Argentina and 44,000 tags in 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 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, , or Media, Brian Kennedy, , both of Allen & Caron Inc, +1-212-691-8087, for Digital Angel Corporation Web site: http://www.digitalangelcorp.com/

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