CHIP Verichip (MM)

Digital Angel Corporation (the ๏ฟฝCompany๏ฟฝ) (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 retained Korn/Ferry International to initiate a search for a new chief executive officer of the Company. Lee J. Artimovich, Office Managing Director and Senior Client Partner, and Ann Quackenbush, Client Partner, will spearhead the search. On August 9, 2007, Digital Angel announced it appointed current Board member Barry M. Edelstein its interim Chief Executive Officer while it conducts a comprehensive search for a new CEO. The Company expects to be in a position to announce a new CEO by the end of the year. Digital Angel๏ฟฝs Board of Directors seeks a small-to-mid-cap strategist with an ability to articulate the Company๏ฟฝs corporate positioning and vision, while improving the Company๏ฟฝs financial position. About Korn/Ferry International Korn/Ferry International, with more than 70 offices in 40 countries, is a premier global provider of talent management solutions. Based in Los Angeles, the firm delivers an array of solutions that help clients to identify, deploy, develop, retain and reward their talent. For more information on the Korn/Ferry International family of companies, visit www.kornferry.com. 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๏ฟฝs 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 but not limited to statements regarding the outcome of the Company๏ฟฝs search for a new chief executive officer. This information is also qualified in its entirety by cautionary statements and risk factor disclosures contained in the Company๏ฟฝs Securities and Exchange Commission filings, including the Company๏ฟฝs 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. Additional Information and Where to Find It In connection with the Merger, Applied Digital intends to file with the Securities and Exchange Commission (๏ฟฝSEC๏ฟฝ) a Registration Statement on Form S-4 that will contain a Joint Proxy Statement/Prospectus of Applied Digital and Digital Angel. Investors and security holders are urged to read the Registration Statement and the Joint Proxy Statement/Prospectus carefully when they become available because they will contain important information about Applied Digital, Digital Angel and the proposed transaction. The Joint Proxy Statement/Prospectus and other relevant materials (when they become available), and any other documents filed with the SEC, may be obtained free of charge at the SEC๏ฟฝs web site (www.sec.gov). In addition, investors and security holders may obtain a free copy of other documents filed by Applied Digital or Digital Angel by directing a written request, as appropriate, to Applied Digital at 1690 South Congress Avenue, Suite 200 Delray Beach, Florida 33445, Attention: Investor Relations, or to Digital Angel at 490 Villaume Avenue, South St. Paul, Minnesota 55075, Attention: Investor Relations. Investors and security holders are urged to read the Joint Proxy Statement/Prospectus and the other relevant materials when they become available before making any voting or investment decision with respect to the proposed transaction. Applied Digital, Digital Angel and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in connection with the proposed transaction. Information regarding the interests of these directors and executive officers in the proposed transaction will be included in the Joint Proxy Statement/Prospectus referred to above. Additional information regarding the directors and executive officers of Applied Digital is also included in Applied Digital's proxy statement (Form DEF 14A) for the 2007 annual meeting of the Company๏ฟฝs stockholders, which was filed with the SEC on May 4, 2007. Additional information regarding the directors and executive officers of Digital Angel is also included in Digital Angel's Form 10-K/A, which was filed with the SEC on April 30, 2007. These documents are available free of charge at the SEC๏ฟฝs website (www.sec.gov) and by contacting Investor Relations at the addresses above.