SO. ST. PAUL, MN (May 15, 2007) -- 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 it entered into a non-exclusive distribution agreement with Milburn Equine, the leading equine veterinary distributor in the United States.

“With its strong distribution capabilities, Milburn Equine provides a link to equine veterinary practitioners and veterinary suppliers across the country,” said Kevin McGrath, Digital Angel president and chief executive officer.

“The agreement ensures Digital Angel’s state-of-the-industry equine ID microchip and equine ID microchip with Bio-Thermo will be readily accessible to equine veterinarians. Our highly accurate, temperature-sensing microchip can help veterinarians and horse owners track, manage and monitor health in horses with a microchip that meets all ISO standards,” McGrath said.

About Milburn Equine
Milburn Equine, a division of Webster Veterinary Supply, Inc., a Patterson Company, is the leading distributor of veterinary supplies to equine practitioners in the USA. One of the most respected names in the veterinary supply industry, Milburn is a value-added, full-service distributor of consumable supplies, equipment, diagnostic products, vaccines and pharmaceuticals

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 accuracy and efficacy of the microchip in addressing animal illnesses. 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 performance of the product according to Company expectations. 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.