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U.S. SENATE URGES DEPARTMENT OF AGRICULTURE TO CONSIDER DIGITAL ANGEL RFID TECHNOLOGY IN NATIONAL ANIMAL IDENTIFICATION PROGRAM
Senate Version of 2006 Agriculture Appropriations Bill
Makes Specific Reference to Digital Angel Technology and Allocates $33.3
Million for Projects Related to National Animal ID Program SO. ST. PAUL, MN (November 30, 2005) ... 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 U.S. Congress has set aside
$33.3 million for projects related to the national animal identification
program. The Senate version of the Bill urges the U.S. Department of
Agriculture (USDA) to consider Digital Angel’s RFID technology in
developing that program. Language in the Senate version of the recently approved FY2006
Agriculture Appropriations Bill noted that Digital Angel RFID technology
has already proven its value to the federal government during the
Company’s 15-year relationship with the U.S. Department of Energy and its
work in the salmon fishing industry. Digital Angel provides the government
with electronic tags and scanners to track salmon in fisheries throughout
the Northwest. Since the December 2003 incident of Mad Cow Disease (Bovine Spongiform
Encephalopathy) in the state of Washington, the USDA has initiated the
development of a national animal identification program for cattle, with a
target completion date of 2008-2009. “Digital Angel has a proud history of leadership in animal
identification, specifically related to cattle, pigs and other livestock,
as well as fish and poultry, and our inclusion in the senate version of
this bill shows that the U.S. Senate has recognized that,” said Digital
Angel CEO Kevin McGrath. “Significant amounts of money have been spent for
several years in pilot programs to understand what technologies will work
in animal identification programs. We believe the information that has
been gathered is now advanced enough that a significant portion of the
money appropriated this year should be spent on the implementation of a
national ID program and we hope the USDA, through its Animal and Plant
Health Inspection Service (APHIS), agrees.” Digital Angel’s proprietary and comprehensive RFID traceability system
includes electronic tags and scanners as well as a database system that
can provide for the registration, tracking and source verification for the
animals tagged in the national identification program. The Company expects
to sell more than 3 million electronic RFID tags in the U.S. this
year. 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 or circumstances
that may arise after the date of this press release. | |||||||||||||||
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