DIGITAL ANGEL CORPORATION ENTERS SOUTH AFRICAN LIVESTOCK TAGGING MARKET Partnership with IdAfrica Provides Digital Angel Products Entry into Cattle, Sheep Markets in South Africa, Neighboring Countries

SO. ST. PAUL, MN and HVIDORE, DENMARK (March 29, 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 three-year distribution agreement with South Africa-based IdAfrica Ltd. to provide Digital Angel products in the cattle and sheep markets in South Africa. The agreement, which includes an initial order for 100,000 visual ear tags and a minimum order of 2 million tags during the first year, allows IdAfrica to also sell the Company’s visual and electronic RFID ear tags and related products on a non-exclusive basis in neighboring African countries such as Namibia, Lesotho and Madagascar, all of which have significant cattle populations.

South Africa is home to an estimated 8 million cattle and 24 million sheep. Namibia, Lesotho and Madagascar have approximately 1.5 million, 2.5 million and 15 million cattle, respectively.

“This agreement is important strategically for us because it opens up an entire new continent for our livestock tagging business,” said Digital Angel President and CEO Kevin N. McGrath. “We are now selling our livestock products in North America, South America, Europe and Africa. Furthermore, it extends our relationship with a respected company that we have previously worked with in the pet and wildlife tagging business. We believe this agreement offers us a tremendous potential to expand our business throughout Africa, a virtually untapped market.”

Currently, South African cattle and sheep ranchers tag their animals for herd management purposes only, not for source tracking for disease management. But most livestock experts predict that the export competition between South Africa, Australia and South America for the lucrative European markets will quicken the evolution to electronic RFID tagging that major importers are starting to demand.

“We believe more stringent tagging demands will soon fall upon African ranchers so it is very important for us to get a foothold in the African continent now and be represented and known in the local industry as the tagging market begins to take off,” McGrath added.

IdAfrica is a sister company to Identipet, a South African supplier of animal identification equipment that Digital Angel has worked closely with in the pet and wildlife tagging business for the past seven years. This agreement calls for IdAfrica to now focus solely on the livestock market in Africa.

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.
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Digital Angel Corporation is majority-owned by Applied Digital Inc. (Nasdaq:ADSX). For more information about Digital Angel, please visit 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.