SO. ST. PAUL, Minn., Nov. 14 /PRNewswire-FirstCall/ -- 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 it has developed and will soon begin selling a new and significantly improved scanner that can electronically read or detect any implanted RFID microchip currently used for pet identification and ownership purposes in the U.S. companion pet market. The new scanners are now in production and are expected to be available for purchase by veterinarians, animal shelters and clinics in late November.

The new scanner was designed to read the vast majority of chips in the nation's expanding companion pet marketplace that use a 125 kHz radio frequency including chips that are encrypted. The new scanner can also detect the presence of a 134 kHz radio frequency chip, also called an ISO chip, which is commonly used outside the country but is present in a small number of pets in the U.S.

The new scanner was developed in response to recent Congressional action calling for a more universal microchip reader and to accommodate veterinarians, pet clinics and pet advocacy groups concerned that a lost pet could unnecessarily be harmed or euthanized if an implanted microchip could not be detected by older scanner models. In the case of the ISO chip, the new Digital Angel scanner will now indicate that a microchip is present in the pet, which will allow the necessary steps to be taken to insure identification of the animal and its ownership.

"Our desire is to improve the capabilities of the microchip scanner product considerably and, at the same time, respond to valid concerns that a pet might be euthanized or lost to its family permanently if a scanner failed to detect an implanted chip," said Digital Angel CEO Kevin McGrath. "We believe this new product again demonstrates that we are the leaders in the national pet identification market and that we are agile enough to adapt to any changes or new needs in the marketplace. We look forward to working closely with all members of our country's companion pet industry to help ensure that any lost pet can be quickly identified and returned to its owners."

Of the approximately 135 million dogs and cats in the United States, it is estimated that as many as 10 million have been implanted with a microchip. More than 7,000 pets per month are recovered in the U.S. using the related registration and recovery systems.

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 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 the Company's majority stockholder, Applied Digital Inc. owns 55.4% of the Company's common stock; that new accounting pronouncements may impact the Company's future results of operation; that the Company may continue to incur losses, that infringements by third parties on the Company's intellectual property or development of substantially equivalent proprietary technology by the Company's competitors could negatively affect the Company's business; that domestic and foreign government regulation and other factors could impair the Company's ability to develop and sell the Company's products in certain markets; that the Company relies on sales to government contractors of its animal identification products, and any decline in the demand by these customers for the Company's products could negatively affect the Company's business; that the Company depends on a single production arrangement for its patented syringe-injectable microchips; that the Company depends on principal customers; that the Company competes with other companies and the products sold by the Company's competitors could become more popular than the Company's products or render the Company's products as obsolete; that the Company's earnings will decline if the Company must write-off goodwill and other intangible assets; that the exercise of options and warrants outstanding and available for issuance may adversely affect the market price of the Company's common stock ;that currency exchange rate fluctuations could have an adverse effect on the Company's sales and financial results; and that the Company depends on a small team of senior management and the Company may have difficulty attracting and retaining additional personnel. 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, 2004. 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.