VeriChip Corporation ships 15,000th Active RFID Asset Tag; Active, Attachable RFID Asset Tag Used for Asset Tracking Solutions f

VeriChip Corporation, a subsidiary of Applied Digital
(NASDAQ:ADSX), announced today the shipment of its 15,000th radio
frequency identification (RFID) asset tag within the past five months,
as it nears completion of its third hospital asset-tracking system
installation during this period.
   "By incorporating RFID-based asset location and tracking into
healthcare environments, hospitals gain control of their medical
equipment, resulting in improved patient care and a better bottom
line," stated Kevin McLaughlin, Chief Executive Officer of VeriChip
Corporation.
   VeriChip Corporation believes that its asset tag is the smallest,
longest-lasting active RFID tag on the market, making it ideal for the
protection and tracking of even small pieces of medical equipment.
Once the tags are attached to desired items, hospital staff can
quickly locate what they need when they need it on an easy-to-use
electronic floor plan. This tagged equipment is also protected from
theft by triggering alarms if items are taken from designated areas,
and helps the hospital with its regulatory compliance and prevention
of infection through the accidental use of "dirty" equipment.
   For more information on VeriChip's RFID-based asset tracking
solutions, please visit www.verichipcorp.com or contact 1-800-970-CHIP
or [e-mail].

   About VeriChip - "RFID for people"

   VeriChip is a subsidiary of Applied Digital and provides
state-of-the-art RFID security solutions that identify, locate, and
protect people, their assets, and their environments. From the world's
first and only FDA-cleared, human-implantable RFID microchip to the
only active RFID tag with patented skin sensing capabilities,
VeriChip's technology ensures the safety and security organizations
are looking for. Its market-leading infant protection, wander
prevention, asset tracking, and patient identification applications
make VeriChip the predominant RFID solutions provider in the
healthcare industry. And today, VeriChip systems are installed in over
4,000 locations worldwide in healthcare, security, industrial, and
government markets making it the world's premier RFID company for
people. For more information on VeriChip, please visit
www.verichipcorp.com.

   About Applied Digital - "The Power of Identification Technology"

   Applied Digital develops innovative identification and security
products for consumer, commercial, and government sectors worldwide.
The Company's unique and often proprietary products provide
identification and security systems for people, animals, the food
supply, government/military arena, and commercial assets. Included in
this diversified product line are RFID applications, end-to-end food
safety systems, GPS/Satellite communications, and telecomm and
security infrastructure, positioning Applied Digital as the leader in
identification technology. Applied Digital is the owner of a majority
position in Digital Angel Corporation.

   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.