Digital Angel Reports 1.9 Million Electronic RFID Livestock Tags Sold During 2005 - An Increase of 73 Percent Over 2004

Upward Sales Trend Accelerates in 2006 With Orders for 1 Million Electronic Tags Already Received 


SO. ST. PAUL, Minn., Feb. 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 that the total sales of its electronic RFID (radiofrequency identification) livestock tags increased by 73 percent in 2005 -- to 1.9 million -- compared to 2004.  The Company also announced that the upward sales trend is accelerating to date in 2006 and that it had already received orders for approximately 1 million RFID livestock tags.

Commenting on the increased electronic tag sales, President and CEO Kevin N. McGrath said: "The significant increase in e-tag sales is a result, in part, of the livestock industry's growing use of Digital Angel's RFID as a technology of choice in the U.S., Canada and around the world.  As we get closer to full implementation of a National Identification Program in the U.S., retailers, producers and cattlemen, in general are preparing for the evolution into RFID technology as a standard in the livestock tracking industry.  Both in the U.S. and internationally, the use of RFID in livestock tracking continues to grow.  We believe that Digital Angel, with our more than 60 years of history in the livestock tracking business, is well positioned to be a major participant in the evolution and implementation of this technology worldwide."

McGrath noted that the Congress has appropriated more than $34 million for the National Identification Program in 2006.  In particular McGrath observed, "The whole industry is encouraging the U.S. Department of Agriculture to make 2006 the year of implementation."

Digital Angel sold almost 50 million visual ear tags in 2005, up from 26 million in 2004, as a result of growth in the U.S. market, the acquisition of Daploma in Europe and the launch of the business in South America.

Digital Angel will report its complete 2005 fourth quarter and year-end results on March 8, 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, 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)           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