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 the U.K. Civil Aviation Authority (CAA) has reported they will follow the U.S. Federal Aviation Administration (FAA) in allowing the use of Personal Locator Beacons (PLBs) by pilots flying under General Aviation (GA) rules. The change will permit the use of PLBs such as those manufactured by Digital Angel�s McMurdo division. Kevin McGrath, Digital Angel�s President and Chief Executive Officer, stated, �We expect this change to drive additional revenues at McMurdo, an acquisition that is performing beyond our expectations.� Previously the FAA and CAA demanded the use of an expensive fixed piece of equipment known as an ELT to locate the site of a crashed aircraft. Consequently most GA pilots chose not to carry any form of emergency locator device. The general exemption covers light aircraft engaged on non-public transport flights, stating that a PLB is permitted to be carried in lieu of an ELT. The original Air Navigation Order stated only �approved� equipment should be carried instead of �suitable� equipment. A PLB is considered suitable by many aviation professionals, as well as thousands of private flyers. The benefits of a PLB with a reliable signal, which is not attached to the plane but to the pilot, are obvious in the event of ditching at sea. This change is an interim measure while the final legislation goes through consultation. Meanwhile PLBs are �exempt� and aviators are free to choose to use them. PLBs have been approved for use in Australia for some time. Following this legislative change, the Company expects a significant increase in the number of PLBs used by pilots in both the U.S. and Europe. 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 Solutions Inc. (NASDAQ: ADSX), which also owns a majority position in VeriChip Corporation (NASDAQ: CHIP). This press release contains forward-looking statements, including statements regarding our expectation that the regulatory change by the UK CAA will drive additional revenues at McMurdo and increase the number of PLBs used by pilots in both the U.S. and U.K These forward-looking statements may be affected by the risks and uncertainties in the Company�s business. This information is 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 year ended December 31, 2006 and its quarterly reports. The Company wishes to caution readers that certain important factors 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 regarding all of these statements, such risk factors include, but are not limited to (i) the willingness of pilots to utilize PLBs and (ii) the ability of the Company to successfully compete with other Companies that provide PLBs and to capture any increased demand for PLBs. 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.