SO. ST. PAUL, MN and HVIDORE, DENMARK (March 9, 2006) ... 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 its Denmark-based subsidiary, Daploma International A/S, has signed an exclusive four-year distribution agreement with UK-based Ritchey PLC, a well known manufacturer and distributor of ear tags and equipment for livestock. The agreement calls for Daploma to produce its full range of visual and electronic RFID ear tags, scanners and other related equipment that Ritchey will distribute through its established channels in the United Kingdom and Ireland.

The agreement provides Digital Angel entry into the UK and Ireland, with an estimated market size of 17.5 million livestock, and 40 million sheep and goats, most of which require more than one tag. These two potentially lucrative markets are significant barriers for new companies where Ritchey is a known and respected distributor. Ritchey, which has been in the livestock tagging business for more than 30 years, is considered the leading distributor of cattle tags in the UK market and the leader in the tagging markets for sheep and goats in both the UK and Ireland. The Digital Angel tags and equipment will also be sold in the swine markets in both countries.

"This is a significant milestone for us because there is no better partner in the UK and Irish livestock industry than Ritchey," said Digital Angel CEO Kevin N. McGrath. "We have been working for years to penetrate these substantial markets, which are difficult because they are so fragmented. But Ritchey gives us a respected partner with established and prosperous distribution channels that will provide us new markets for our tags. I'd like to thank and congratulate our Daploma team, including Lasse and Torsten Nordfjeld, for working so diligently to make this happen and we look forward to working with the Ritchey team."

Digital Angel purchased Daploma, a company that has been in the livestock tagging business for 30 years, in March 2005. Daploma has also successfully established markets in Europe, the Middle East, Japan and Australia.

About Ritchey PLC
Ritchey has been designing and manufacturing livestock ear tags for more than 30 years and works closely with government departments on national identification schemes worldwide. Ritchey offers customers an extensive range of livestock, equine and pet healthcare and grooming products plus unparalleled service and after sales support through its exclusive partnership with agricultural merchants throughout the country.

About Digital Angel Corporation
Digital Angel Corporation 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). For more information about Digital Angel, please visit http://www.digitalangelcorp.com/.

The statements in this press release that are not strictly historical, are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are intended to be covered by the safe harbors created by these sections. The forward-looking statements are subject to risks and uncertainties and the actual results that the Company achieves may differ materially from these forward-looking statements due to such risks and uncertainties, including, but not limited to, Applied Digital Solutions, Inc. owns 55.4% of the Company's common stock, new accounting pronouncements regarding expensing of share based compensation may impact the Company's future results of operations, the Company may continue to incur net losses, infringement by third parties on the Company's intellectual property or development of substantially equivalent proprietary technology by the Company's competitors could negatively impact the Company's business, domestic and foreign government regulation and other factors could impair the Company's ability to develop and sell its products in certain markets, the Company relies on sales to government contractors for its animal identification and search and rescue beacon products, and any decline in the demand by these customers for such products could negatively affect the Company's business, the Company depends on a single production arrangement for its patented syringe-injectable microchips, and the loss of or any significant reduction in the production could have an adverse effect on the Company's business, technological change could cause the Company's products to become obsolete, the loss of one of the Company's principal customers could negatively impact the Company's net revenue, the Company's earnings will decline if the Company writes off goodwill and other intangible assts, options and warrants outstanding and available for issuance may adversely affect the market price of the Company's common stock, currency exchange rate fluctuations could have an adverse effect on the Company's sales and financial results, the Company depends on a small team of senior management. A detailed statement of risks and uncertainties is contained in the Company's reports to the Securities and Exchange Commission, including in particular the Company's Form 10-K for the fiscal year ended December 31, 2005. Investors and stockholders are urged to read this document carefully. 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.