DIGITAL ANGEL'S DESTRON FEARING UNIT RENEWS DISTRIBUTION AGREEMENT WITH ANIMALCARE LIMITED

SO. ST. PAUL, MN (March 1, 2010) - Digital Angel (NASDAQ: DIGA), an advanced technology company in the field of animal identification and emergency identification solutions, announced today that its Destron Fearing unit has renewed its distribution agreement for a further two-year period with Animalcare Limited, a leading distributor of companion animal and equine products in the United Kingdom and the Republic of Ireland.

Joseph J. Grillo, Chief Executive Officer of Digital Angel, commented, "Destron Fearing has been providing Animalcare with products for companion animals since 1989, and we're very pleased to continue this great relationship. Animalcare was the first company to distribute our Bio-Thermo® microchip, branded there as Identichip®, and not only provides products to the marketplace but also manages a database for companion pets, with over two million animals currently registered, making them an especially strong partner for us in this key territory."

Stephen Wildridge, Managing Director of Animalcare Limited, said, "We value very highly the relationship that we have built over the years with Destron Fearing and are delighted that this is strengthened by the continuation of this agreement. We look forward to continuing to provide the veterinary market and pet owners in the UK and Ireland the high quality identification products and services they have come to expect from Animalcare and Identichip."

About Animalcare Limited

Based in North Yorkshire, UK, Animalcare Limited since 1988 has offered a broad range of companion animal health products in the UK and the Republic of Ireland. Animalcare Limited is a subsidiary of Animalcare Group plc, a long-established manufacturer and supplier of premium-quality livestock products to agricultural retailers for onward sale to farmers. For further information please visit www.animalcare.co.uk/home/default.aspx.

About Digital Angel

Destron Fearing is a subsidiary of Digital Angel (NASDAQ: DIGA), an advanced technology company in the field of animal identification and emergency identification solutions. Digital Angel's products are utilized around the world in such applications as pet identification, using its patented, FDA-approved implantable microchip; livestock identification and herd management using visual and radio frequency identification (RFID) ear tags; and global positioning systems (GPS) search and rescue beacons for army, navy and air force applications worldwide. For further information please visit www.destronfearing.com and www.digitalangel.com.

This press release contains certain "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Forward-looking statements included in this press release include, without limitation, those concerning expectations regarding the expected benefits of the agreement on the Company's financial results. These forward-looking statements are based on the Company's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions. Additional information about these and other factors that could affect the Company's businesses is set forth in the Company's Form 10-K under the caption "Risk Factors" filed with the Securities and Exchange Commission ("SEC") on March 31, 2009, and subsequent filings with the SEC. The Company undertakes no obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this statement or to reflect the occurrence of unanticipated events, except as required by law.