ADSX Applied Digital Solutions (MM)

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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