Digital Angel to Market Electronic RFID Livestock Tagging Systems in Brazil, World's Largest Beef Exporter

Company Also Begins Manufacturing Livestock Tags in Argentina 


SO. ST. PAUL, Minn., Aug. 10  /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 it signed a distribution agreement with a Brazilian company to begin selling electronic RFID (radio frequency identification) livestock tags, antennas and readers throughout Brazil, the largest beef exporting country in the world and home to nearly 200 million cattle, which is twice the size of the U.S. market.  Digital Angel also announced that it has begun manufacturing livestock tags in Argentina.

Digital Angel has signed an agreement with Digitaltronic, a Brazilian company located in the cattle rich state of Sao Paolo.  Reflecting the impact of this new agreement, Digital Angel now has a sales presence in six Latin American countries including Argentina, Brazil, Chile, Ecuador, Mexico and Uruguay.

Digital Angel President and Chief Executive Officer Kevin N. McGrath said the Company had already received two orders whose combined valued is more than $200,000 from Digitaltronic, a company whose executives have strong ties to the cattle industry.

"We continue to make steady progress penetrating the rapidly expanding South American market," McGrath said.  "We believe Digitaltronic provides us a very strong footprint in Brazil, which is moving quickly toward electronic tagging as a means to eliminate Hoof and Mouth Disease and enhance cattle traceability, which should help bolster their already strong beef export industry.  Furthermore, our manufacturing facility in Argentina will help us be much more competitive throughout the region.  Since we have the superior technology in the livestock tagging industry, we believe an entrance into Brazil and our stronger presence throughout South America are important milestones for Digital Angel."

The two Brazilian livestock regulatory agencies, Embrapa (Brazilian Agriculture and Research Corporation) and SISBOV (Brazilian System of Identification and Certification of Origin for Bovine and Buffalo) are working together to develop and promote electronic traceability to help eradicate disease in Brazil.  According to the IBGE (Brazilian Institute of Geography and Statistics), the area devoted to the cattle industry in Brazil covers more than 1.8 million square miles.

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, [phone],

, or Media, Len Hall, [phone],

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



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

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