CHIP Verichip (MM)

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 has been awarded a $400,000 contract to design and develop the Harness Activation System that connects to the United States Air Force Jet Pilot Recovery Radio (URT 33). The Company won the initial contract in December 2006 to design and develop the URT 33 replacement radio. The URT 33 radio needs to be replaced because of a frequency change for the related satellite system that is scheduled to be implemented in 2009. Digital Angel will combine the harness development with the radio development program in order to provide a complete system by June 2007. Following successful trial and testing of the system, the U.S. Air Force replacement requirement for an estimated 15,000 systems will go to open tender. Digital Angel President and Chief Executive Officer Kevin McGrath commented, �We are delighted to be selected for this follow-on development contract and provide the fully integrated system to the U.S. Air Force. We believe that the second award is a reflection of our performance to date on the URT 33 contract. Furthermore, these two contracts will play a key role in providing us the opportunity to bid on future contracts with the U.S. military.� About Digital Angel Corporation Digital Angel Corporation (www.DigitalAngelCorp.com) 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), which also owns a majority position in VeriChip Corporation (NASDAQ:CHIP). This press release includes forward-looking statements, including statements regarding the Company�s belief that the two URT 33 contracts will provide it opportunities to bid on future contracts with the U.S. military. These forward-looking statements may be affected by the risks and uncertainties in the Company�s business. The Company wishes to caution readers that certain important factors and various risks may have affected and could in the future affect the Company�s actual results and could cause the Company�s actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company. With respect to the Company's expectations expressed in this press release, such risk factors include, but are not limited to, the Company�s ability to successfully perform under its current U.S. military contracts. This information is also qualified in its entirety by cautionary statements and risk factor disclosures contained in the Company�s Securities and Exchange Commission filings, including the Company�s annual report on Form 10-K for the fiscal year ended December 31, 2006 and its quarterly reports. 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.