SO. ST. PAUL, MN (December 5, 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 it will introduce its patented Bio-Thermo™ (temperature-sensing) implantable RFID microchip and related identity system to international poultry/bird markets with the initial geographic emphasis in Asia. The comprehensive identity system includes the implantable Bio-Thermo microchip and related identity and temperature-sensing scanners that allow early identification of temperature increases in individual birds which may permit rapid identification and control of an outbreak of bird flu or other avian diseases.

Until now the Company has focused its implantable RFID temperature sensing system on the companion pet and equine marketplace. The system is in testing phases for other livestock such as cattle and swine. "As disease and bio-terrorism increasingly threaten the global food chain and the health of humans and livestock, the Company has targeted new applications in this area" said Kevin McGrath, President and CEO of Digital Angel. He also noted that the Company's identity microchips have already been used in avian identification applications.

"Just as we made our identification products available to Gulf Coast communities in the aftermath of Hurricane Katrina, we believe that our proprietary technology should be made available to threatened countries and researchers working to control the spread of avian flu", said McGrath. "We have had 200,000 bio-thermo chips manufactured for this and companion pet applications and we are immediately prepared to work with research institutions and government entities on any further research necessary to control avian flu."

"Our decision to target the poultry markets is an extension of the success we've had in implantable microchips in Asia and elsewhere. Clearly we have sold more implantable microchips for animals than anyone in the world," McGrath said. "As the only provider of temperature sensing RFID microchips in the world for livestock, the detection of elevated temperatures in avian populations represents a new yet natural application of our technology. Since early detection of temperature increases could be important to identifying and controlling bird flu outbreaks, our Bio-Thermo identity system may prove instrumental in dealing with the disease in a cost effective manner within the confines of a poultry farm.

McGrath said Leo Ortenblad, Managing Director of Digital Angel's International Animal Applications sales activities, will lead the initiative.

"Leo is an eight year veteran of Digital Angel and, because he has broad experience in Asia and other international markets, he is ideally suited to leading this effort," McGrath said.

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 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.