Digital Angel Corporation Awarded Patent for Breakthrough Glucose-Sensing RFID Microchip

  
    
  
  
    
      The U.S. Patent and Trademark Office has granted Digital Angel 
      Corporation (AMEX: DOC) a patent for its syringe-implantable 
      glucose-sensing RFID microchip, Digital Angel announced today. The RFID 
      microchip measures the glucose concentration levels of diabetic patients 
      and will be marketed and distributed by Digital Angel’s 
      sister company, VeriChip, as an extension to the company’s 
      products benefiting people.
    
    
      “A glucose-sensing microchip could profoundly 
      impact the 230 million people worldwide living with diabetes,” 
      said Digital Angel CEO and President, Kevin McGrath. “Patent 
      approval for this RFID microchip is a major step in bringing this 
      life-altering technology to market. It also underscores Digital Angel’s 
      commitment to innovation, product development and rapid growth.”
    
    
      Checking blood glucose levels regularly is critical to properly managing 
      diabetes. The conventional method – a finger 
      prick – is invasive, painful and often 
      inaccurate. The implantable bio-sensor chip has a passive transponder, 
      glucose sensor and integrated circuitry that allow anyone implanted with 
      the microchip to painlessly scan it to determine their level of glucose 
      concentration. The RFID microchip quickly and accurately transmits the 
      glucose data back to a wireless scanner that displays the glucose level. 
      The RFID microchip is powered by the scanner signal, avoiding the need 
      for a battery in the microchip.
    
    
      “This is a landmark development in the world 
      of diabetes management,” said Dr. Joseph 
      Feldman, Chairman of the Emergency/Trauma Department of Hackensack 
      University Medical Center. “The current 
      process for monitoring blood sugar levels is painful, cumbersome and 
      discouraging, and especially burdensome for the young and the elderly. 
      By having this technology, the process becomes effortless. This 
      glucose-sensing RFID microchip is the next great step in implantable 
      microchip technology.”
    
    
      Digital Angel, a leading producer of electronic tags for livestock, 
      pets, fish and humans, foresees expansion beyond the human market for 
      the glucose-sensing RFID microchip. According to the company, diabetes 
      is a major disease issue in animal livestock today. As a result, the 
      glucose-sensing RFID microchip could have an equally significant impact 
      in monitoring the glucose levels in livestock animals.
    
    
      “We recognize that extensive work is required 
      to commercialize this product, including the time and investment 
      required for development, clinical trials and FDA approval,” 
      said McGrath. “Still, we view this as an 
      incredibly important advancement in the world of diabetes management.”
    
    
      Digital Angel is seeking international patent protection covering the 
      same glucose-sensor RFID technology. The company, in conjunction with 
      VeriChip Corporation, its exclusive licensee in the area of human 
      implantable identification products, is in the process of naming this 
      product.
    
    
      The patent, No. 7,125,382 was granted on October 24, 2006 and is titled 
      "Embedded Bio-Sensor System."
    
    
      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 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.
    
  
The U.S. Patent and Trademark Office has granted Digital Angel
Corporation (AMEX: DOC) a patent for its syringe-implantable
glucose-sensing RFID microchip, Digital Angel announced today. The
RFID microchip measures the glucose concentration levels of diabetic
patients and will be marketed and distributed by Digital Angel's
sister company, VeriChip, as an extension to the company's products
benefiting people.

   "A glucose-sensing microchip could profoundly impact the 230
million people worldwide living with diabetes," said Digital Angel CEO
and President, Kevin McGrath. "Patent approval for this RFID microchip
is a major step in bringing this life-altering technology to market.
It also underscores Digital Angel's commitment to innovation, product
development and rapid growth."

   Checking blood glucose levels regularly is critical to properly
managing diabetes. The conventional method - a finger prick - is
invasive, painful and often inaccurate. The implantable bio-sensor
chip has a passive transponder, glucose sensor and integrated
circuitry that allow anyone implanted with the microchip to painlessly
scan it to determine their level of glucose concentration. The RFID
microchip quickly and accurately transmits the glucose data back to a
wireless scanner that displays the glucose level. The RFID microchip
is powered by the scanner signal, avoiding the need for a battery in
the microchip.

   "This is a landmark development in the world of diabetes
management," said Dr. Joseph Feldman, Chairman of the Emergency/Trauma
Department of Hackensack University Medical Center. "The current
process for monitoring blood sugar levels is painful, cumbersome and
discouraging, and especially burdensome for the young and the elderly.
By having this technology, the process becomes effortless. This
glucose-sensing RFID microchip is the next great step in implantable
microchip technology."

   Digital Angel, a leading producer of electronic tags for
livestock, pets, fish and humans, foresees expansion beyond the human
market for the glucose-sensing RFID microchip. According to the
company, diabetes is a major disease issue in animal livestock today.
As a result, the glucose-sensing RFID microchip could have an equally
significant impact in monitoring the glucose levels in livestock
animals.

   "We recognize that extensive work is required to commercialize
this product, including the time and investment required for
development, clinical trials and FDA approval," said McGrath. "Still,
we view this as an incredibly important advancement in the world of
diabetes management."

   Digital Angel is seeking international patent protection covering
the same glucose-sensor RFID technology. The company, in conjunction
with VeriChip Corporation, its exclusive licensee in the area of human
implantable identification products, is in the process of naming this
product.

   The patent, No. 7,125,382 was granted on October 24, 2006 and is
titled "Embedded Bio-Sensor System."

   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 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.