VeriChip Infant Protection Product Now Used in One-In-Three U.S. Hospitals and Birthing Centers

Over 1,100 Installations To-Date in the United States 


DELRAY BEACH, Fla., Dec. 13  /PRNewswire-FirstCall/ -- Applied Digital (NASDAQ:ADSX), through its VeriChip Corp. subsidiary, announced today that it has passed an important milestone in the sale and use of VeriChip's infant protection systems, with one-out-of-three Hospitals and Birthing Centers in the United States now using systems manufactured by VeriChip.  This includes systems sold under both the Hugs and HALO brand names.

VeriChip believes that it has the largest installed base of infant protection systems of any company in the industry. Revenues from sales of VeriChip's infant protection systems increased by 28% during the first three- quarters of 2006 as compared to pro forma revenue from such systems during the comparable period in 2005.

"This important achievement is reflective of VeriChip's leadership in RFID products for healthcare security solutions," said Daniel A. Gunther, President of VeriChip Corp.

For more information on VeriChip's infant protection systems, please contact 1-866-559-6275 or email . Additional information can be found online at http://www.verichiphealthcare.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 (AMEX:DOC).

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. 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:

   Investors:
   Nick Laudico
   The Ruth Group
   646-536-7030
   

   Media:
   Jason Rando
   The Ruth Group
   646-536-7025
   

DATASOURCE: Applied Digital



CONTACT:  Investors: Nick Laudico, [phone],

, or Media: Jason Rando, [phone],

, both of The Ruth Group



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

http://www.verichiphealthcare.com/ 

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