VeriChip Corporation Completes Installations of Three Hugs Infant Protection Systems in Portugal

Company Looks to Expand International Sales Opportunities 


DELRAY BEACH, Fla., Feb. 21  /PRNewswire-FirstCall/ -- VeriChip Corporation (NASDAQ:CHIP), a provider of RFID systems for people in the healthcare industry, announced today the completion of its first three Hugs(R) infant protection systems in Portugal. These installations also represent the Company's first sales in continental Europe for the Hugs system. Overall, VeriChip has now sold 15 Hugs infant protection systems in international markets.

The Hugs systems were installed in Hospital da Luz - Lisbon, Hospital Sao Joao de Deus - V.N. Famalicao and Hospital de Sao Teotonio -Viseu by SAFESIS, the Iberian partner of Austco Communication Systems. The Hugs system is CE-marked, a prerequisite for selling product in Europe.

"This is a significant step of our expansion into the continental European market, following the introduction of Hugs to the UK market," said Daniel A. Gunther, President of VeriChip Corp. "VeriChip is a market leader for infant protection in North America, and we are positioning ourselves for growth overseas. Working with international partners such as Austco, we will continue to pursue opportunities in the global market for infant protection systems as awareness of the infant abduction threat grows."

VeriChip's partnership with Austco, a company with an established presence in international healthcare, began in 2002. Austco is the primary international distributor for VeriChip in all markets outside the USA.

Robert E. Grey, President and CEO of Austco Communication Systems, commented, "Austco is very proud to partner with VeriChip and bring the proven security of the Hugs system to the European market. These sales demonstrate that the heightened demand for infant protection is a global phenomenon. We believe that there is considerable opportunity to introduce Hugs throughout Europe."

"In light of two recent infant abductions in Portugal, we believe that the hospitals which received the Hugs systems in Portugal will benefit from the technology and security it offers parents," stated Joao Lago, CEO of SAFESIS.

For more information on VeriChip's healthcare security products, please contact 1-866-559-6275 or email . Additional information can be found online at http://www.verichiphealthcare.com/.

About Austco

Australian-based Austco Communication Systems has been a world leader since 1986 in the highly specialized field of electronic communications for healthcare and secure accommodation environments. Austco designs and manufactures dedicated microprocessor based and computer based nurse call systems for the hospital, long-term care, and dementia care markets. There are over 4,200 Austco call systems installed throughout 47 countries worldwide. For more information on Austco, visit the company's website at http://www.austco.com/.

About SAFESIS

SAFESIS is a specialist engineering company headquartered in Maia, Portugal, with a focus on infant protection, nurse call and security systems for the healthcare market. Its selection of reliable products and systems partners, coupled with advanced engineering skills, has resulted in strong and steady growth in the healthcare market. For more information on SAFESIS, visit the company's website at http://www.safesis.com/

About VeriChip Corporation

VeriChip Corporation, headquartered in Delray Beach, Florida, develops, markets and sells radio frequency identification, or RFID, systems used to identify, locate and protect people and assets. VeriChip's goal is to become the leading provider of RFID systems for people in the healthcare industry. VeriChip sells passive RFID systems for identification purposes and active RFID systems for local-area location and identification purposes. VeriChip recently began to market its VeriMed(TM) Patient Identification System for rapidly and accurately identifying people who arrive in an emergency room and are unable to communicate. This system uses the first human-implantable passive RFID microchip, the implantable VeriChip(TM), cleared for medical use in October 2004 by the United States Food and Drug Administration.

VeriChip Corporation is majority-owned by Applied Digital Inc. (NASDAQ:ADSX). For more information on VeriChip, please call 1-800-970-2447, or email . Additional information can be found online at http://www.verichipcorp.com/.

Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and the Company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.

  Contact:
  VeriChip Corporation         The Ruth Group
  Allison Tomek                Nick Laudico (investors)
  561-805-8000                 [phone]
                

                               Jason Rando (media)
                               [phone]
                               

DATASOURCE: VeriChip Corporation



CONTACT:  Allison Tomek of VeriChip Corporation, [phone],

; or for investors, Nick Laudico, [phone],

, or for media, Jason Rando, [phone],

, both of The Ruth Group, for VeriChip Corporation



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

http://www.verichiphealthcare.com/

http://www.safesis.com/

http://www.austco.com/

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