SO. ST. PAUL, MN (October 30, 2006) … Digital Angel Corporation (Amex: DOC) today announced it has hired Rae Powell as Vice President of Sales and Marketing for its North American Animal Applications business, reinforcing its commitment to expand its animal applications efforts. Powell will report directly to Lasse Nordfjeld, President – Animal Applications Division.

With more than a decade of industry experience, Powell’s appointment is further evidence of Digital Angel’s commitment to building a world-class executive team capable of implementing a diverse, global business plan and driving shareholder and market value.

“Digital Angel has made significant progress in a number of critical areas, including; electronic tags for livestock, implantable pet I.D. chips and, most recently, a landmark patent for a glucose-sensing RFID technology that we hope some day will revolutionize how diabetics manage their disease,” said Digital Angel CEO and President Kevin McGrath. “Rae’s industry expertise will help us continue this momentum and further establish our leadership position in advanced RFID microchips.”

Powell joins Digital Angel from Merial Limited, where he served as Regional Director, managing the company’s Western U.S. operations. In this position, Powell oversaw more than $40 million in annual sales, frequently exceeding sales goals in the company’s most customer-diverse region. Additionally, Powell successfully launched several new product lines and significantly revamped the marketing programs for existing products. He is an active member of the Texas Cattle Feeders Association and has worked closely with farmers and ranchers throughout the country.

“We believe Rae’s sales and marketing experience will prove invaluable as Digital Angel continues to enter new markets and explores the full applications of its technologies,” said Lasse Nordfjeld, Digital Angel’s President, Animal Applications Division. “Animal Applications remains an essential component of Digital Angel’s business model, and Rae has proven his ability to successfully communicate the need for responsible innovation within the livestock industry.”

“Digital Angel is the recognized leader in the RFID market,” said Powell, adding “From the perspective of a sales and marketing executive, Digital Angel’s commitment to developing highly practical technologies that appeal to sensible, cost conscious, consumers, has allowed the company to build a solid reputation and uncover the full potential of its products. Producers do not buy what they don’t need; Digital Angel’s continued growth represents a distinct shift in the way the livestock community perceives RFID technology.”

Additionally, the company announced last month that its 2006 sales of electronic RFID livestock tags have exceeded full-year 2005 sales of the tags. The increased awareness of potential animal health issues and the importance of livestock traceability fueled the record-breaking sales. In addition to the United States, Europe and Canada, Digital Angel now sells electronic tags in Central America and South America.

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.