Digital Angel Corporation Reports Record Sales Month for Visual Livestock ID Tags in U.S.

SO. ST. PAUL, Minn., April 11  /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 gross U.S. sales of its visual identification ear tags for livestock in the month of March 2006 exceeded $1 million, the first million-dollar month since the Company began selling visual livestock tags in 1945.  The new monthly record surpassed the former record, set in 2004, by more than $100,000.

"The $1 million month is a historic milestone for Digital Angel and it is a testament to the hard work of our employees and business partners and the increasing acknowledgement among ranchers and consumers of the importance of properly tagged livestock," said President and Chief Executive Officer Kevin N. McGrath.  "Sales increases were reported across all regions of the U.S. and across all market sectors, including dairy, beef and hogs.  We are also experiencing increases in visual tag purchases from our electronic tag customers who understand the need for visual tags as an augment to their e-tags."

McGrath noted that the expanding move toward electronic RFID tagging by ranchers, prompted primarily by the need to verify the sources and history of livestock from birth to the processing plants, has also increased demand for visual tags, a product which Digital Angel pioneered more than 60 years ago. While ranchers need the electronic system to create a permanent history and database for livestock, visual tags also play a role in easily identifying the animals, particularly in the early years of their lives.

"Even as the demand for electronic tagging increases, it appears like visual tags will continue to play an important role," McGrath said.  "Ranchers often need to be able to identify livestock visually and these tags play a vital role in the processing system.  The visual identification tag business is a foundation of our business and remains so."

Digital Angel's U.S. Visual Identification Products Division sells visual tags under several brand names, including the Company's primary brand, Fearing Duflex.

Digital Angel notes that the monthly sales figure reported above is one component of its animal applications segment sales figure and that this figure may not necessarily be indicative of the Company's consolidated results of operations for the three month period ended March 31, 2006.  Digital Angel presently expects to release its first quarter results in May 2006.

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, Applied Digital Inc. owns 55.4% of the Company's common stock, 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 assts, 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, [phone],

, or Media, Len Hall, [phone],

, both of Allen & Caron Inc, for Digital Angel Corporation



Web site:  http://www.digitalangelcorp.com/ 

Copyright