Digital Angel Donates Implantable RFID Microchips, Scanners to Aid in the Pet Identification Effort Following Hurricane Katrina

Gulf Coast Animal Shelters Using Scanners to Identify Previously 'Chipped' Pets, Microchips to Link to Database of Information on Lost Pets 


SO. ST. PAUL, Minn., Sept. 20  /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, today announced that the Company and its distributor, Schering-Plough (NYSE:SGP), are donating implantable RFID (radio-frequency identification) microchips and scanners to animal shelters along the Gulf Coast to help in the extensive pet identification effort following Hurricane Katrina.  To date, Digital Angel has provided 2,000 microchips and 28 scanners that Schering-Plough is distributing to various animal shelters along the coasts of Louisiana, Mississippi and Alabama.

The scanners are being used by the shelters to read microchips in pets that were previously "chipped" but were dislocated from their owners by the hurricane.  The shelters are also implanting lost pets with microchips that link the pets to a database being compiled containing important information about the lost animals, including breed, size, weight, and where and when they were found, that could help them eventually be reunited with their owners.

Digital Angel Chief Executive Officer Kevin McGrath said the Company and Schering-Plough will continue donating the microchips and scanners as the rebuilding effort in the damaged area continues.  Schering-Plough markets and distributes the microchips and scanners as part of its HomeAgain(R) Pet Recovery Service.

"We are pleased to be part of this nationwide effort to come to the aid of the people and the companion pets affected by Hurricane Katrina," McGrath said.  "Tragedies such as this underscore the importance of permanent pet identification through the use of implantable microchips.  Thankfully, because of the usefulness of the HomeAgain pet recovery system, many lost pets are being united with their owners every day in the Gulf Coast area."

The HomeAgain Pet Recovery Service includes microchips, readers, non- surgical injection systems and a national database.  The system involves the insertion of a microchip with a unique 10-digit number in the animal allowing electronic readers at animal shelters, veterinary clinics and other locations throughout the country to access the number and link it to a database containing the name of the animal's owner and other information.

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 pets, fish, livestock, and humans 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 a majority-owned subsidiary of Applied Digital (NASDAQ:ADSX).

For more information about Digital Angel, visit the company's website at 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 substantiallyequivalent 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
             Joe Allen (investors)            Brian Kennedy (media)
             212-691-8087                     212-691-8087
                            

DATASOURCE: Digital Angel Corporation



Contact:  investors, Joe Allen, , or media, Brian

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