Royal Malaysian Air Force Places Order for SARBE Rescue Beacons from Digital Angel

  
    
  
  
    
      Digital Angel Corporation (AMEX: DOC) announced today that the SARBE 
      Division of its London-based subsidiary, Signature Industries, has 
      signed a new contract with Royal Malaysian Air Force (RMAF) to provide 
      SARBE G2R Personal Locator Beacon (PLB) for use by fast jet and 
      helicopter aircrew. RMAF has placed an initial order of more than 
      $115,000 and the Company believes that additional orders approximating 
      $2.5 million for such equipment will be made by the Royal Malaysian Air 
      Force in 2007. Training, support and spares will be ongoing and are 
      expected to generate significant future revenue.
    
    
      “After a rigorous selection process, we’re 
      delighted the Royal Malaysian Air Force has chosen our SARBE G2R 
      Personal Locator Beacon,” said Kevin McGrath, 
      CEO of Digital Angel. “The Malaysian Air Force 
      has used SARBE beacons for more than 30 years. We look forward to a 
      continued partnership by providing RMAF with products that will perform 
      in the most demanding environments.”
    
    
      PLBs are routinely carried as standard survival equipment by aircrews of 
      fixed and rotary wing aircraft and are used to summon assistance 
      following an ejection or other events resulting in crew evacuation. The 
      new beacons offer significantly improved alerting capabilities with much 
      higher levels of accuracy leading to the prospect of faster rescues and 
      better survival prospects. A change in the satellite monitoring of PLB 
      distress transmissions has resulted in the need for military 
      organizations to replace older style analogue equipment with more 
      advanced digital beacons. As a result, SARBE G2R will eventually replace 
      the widely deployed SARBE 6 PLB.
    
    
      Signature Industries is working with customers around the world to help 
      ensure SARBE beacons retain their position as market leader for this 
      type of equipment. The SARBE Division of Signature Industries 
      manufactures a complete line of military search and rescue beacons and 
      has worked with RMAF for more than 30 years and the UK Ministry of 
      Defense for more than 50 years.
    
    
      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.
    
  
Digital Angel Corporation (AMEX: DOC) announced today that the
SARBE Division of its London-based subsidiary, Signature Industries,
has signed a new contract with Royal Malaysian Air Force (RMAF) to
provide SARBE G2R Personal Locator Beacon (PLB) for use by fast jet
and helicopter aircrew. RMAF has placed an initial order of more than
$115,000 and the Company believes that additional orders approximating
$2.5 million for such equipment will be made by the Royal Malaysian
Air Force in 2007. Training, support and spares will be ongoing and
are expected to generate significant future revenue.

   "After a rigorous selection process, we're delighted the Royal
Malaysian Air Force has chosen our SARBE G2R Personal Locator Beacon,"
said Kevin McGrath, CEO of Digital Angel. "The Malaysian Air Force has
used SARBE beacons for more than 30 years. We look forward to a
continued partnership by providing RMAF with products that will
perform in the most demanding environments."

   PLBs are routinely carried as standard survival equipment by
aircrews of fixed and rotary wing aircraft and are used to summon
assistance following an ejection or other events resulting in crew
evacuation. The new beacons offer significantly improved alerting
capabilities with much higher levels of accuracy leading to the
prospect of faster rescues and better survival prospects. A change in
the satellite monitoring of PLB distress transmissions has resulted in
the need for military organizations to replace older style analogue
equipment with more advanced digital beacons. As a result, SARBE G2R
will eventually replace the widely deployed SARBE 6 PLB.

   Signature Industries is working with customers around the world to
help ensure SARBE beacons retain their position as market leader for
this type of equipment. The SARBE Division of Signature Industries
manufactures a complete line of military search and rescue beacons and
has worked with RMAF for more than 30 years and the UK Ministry of
Defense for more than 50 years.

   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.