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DIGITAL ANGEL MARKET OPPORTUNITY FOR CATTLE TAGGING EXPANDS WITH
DECISION BY CANADIAN GOVERNMENT
Company Receives Approval for New Reader and Antenna as
Canada Extends, Expands Funding of RFID Scanning Equipment for Livestock
Tracking
SO. ST. PAUL, MN (June 15, 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 the market
opportunity for its Radio Frequency Identification (RFID) tags (e.Tags™)
and scanning systems has grown significantly due to the Canadian
government’s recent decision to extend a national program through December
2007 for the funding of livestock RFID readers and scanning systems. The
government-backed program is part of Food Safety and Quality within
Agri-Food Canada to reimburse eligible participants by defraying a part of
the cost of RFID equipment used to scan electronically identified animals
as they move from farm to market.
Canada is moving towards
electronically tracking cattle and livestock. Cattle are identified in a
mandatory industry-led program instituted in January 2001. Canada is
attempting to revitalize the country’s struggling beef industry that had
been damaged by its first case of Mad Cow Disease. Digital Angel, a
pioneer in animal RFID products, is one of a few companies with electronic
RFID ear tags approved for the program after testing by the Canadian
Cattle Identification Agency (CCIA).
The government’s decision to
extend this funding initiative should bolster an already robust electronic
cattle tagging business in Canada, said Digital Angel President and CEO
Kevin N. McGrath. The Company announced in January that it had delivered
more than 265,000 e.Tags to its Canadian distributors during the months of
November and December 2005. Digital Angel just received CCIA Conditional
Approval of a new reader and antenna for use in scanning livestock
predominantly in an auction market facility. This new system provides
auto-tuning, synchronization, high speed data transfer, memory backup,
portability and customization to exiting facilities.
“This is a
meaningful move by the Canadian government and tremendous news for Digital
Angel and our e.Tag system business,” McGrath said. “We experienced very
strong sales in Canada last fall thanks in large part to this government
and industry backed program. This program extension should mean an
increase in demand for electronic ear tags and scanning systems in the
months to come as the industry adapts to this evolving technology. The
Canadian government clearly sees the need for a national cattle
identification and traceability program that can help ensure the quality
of their beef products.”
A database of Canada’s approximately
122,000 cattle producers, which has a total cattle inventory of 14.7
million head of cattle that produce approximately 3.6 million pounds of
beef and beef products annually, is already in place.
The full line
of Destron Technologies cattle electronic identification products
manufactured by Digital Angel were approved by the CCIA. Under the new
program, eligible participants are reimbursed up to 50 percent of the cost
of eligible RFID readers, up to $1,000 for hand-held models and $3,000 for
panel readers.
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, that Applied
Digital Inc. owns 55.4% of the Company’s common stock, that 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
assets, 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.
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