LETTER TO DIGITAL ANGEL STOCKHOLDERS FROM CEO JOSEPH J. GRILLO

SO. ST. PAUL, MN (June 7, 2010) - The following is a letter to the stockholders of Digital Angel Corporation (NASDAQ:DIGA) from CEO Joseph J. Grillo:

Dear Fellow Stockholders,

As we approach mid-year, I wanted to update our stockholders on our activities to date, as well as to provide perspective on what we are looking to achieve in the second half of the year.

Since I joined Digital Angel in 2008, my goal as CEO has been to turn the company around both financially and strategically. My first order of business was to develop a focused, long-term plan to serve as our guide to profitability. We began executing against this roadmap in late 2008, and since then we have demonstrated measurable progress against these efforts.

We have reduced our debt burden from $33 million to under $10 million, significantly cut our expenses and overhead to improve our margins and increased cash flow. Our financial performance continues to improve, and our progress has prepared us to capitalize on the recovery we are seeing in the Animal Identification markets, where our core business, Destron Fearing, is an established market leader.

As I discussed in our first quarter conference call back in May, the recovery we see in the livestock market is being enhanced by specific government regulations and industry mandates. We see significant opportunities in Latin American and Asia. In Brazil, to comply with the import regulations of the EU, the government is requiring electronic tagging for cattle. We have been building out and increasing our presence and resources in the area and are prepared to meet this increased demand. In addition, members of the Destron Fearing management team just returned from an extended trip to the Asia Pacific region, including China, where we had extremely positive meetings with a number of future business partners that want to do business with Destron Fearing. These opportunities are exciting and a signal that the market is improving and that we are continuing to establish our strong competitive position.

Maintaining our NASDAQ listing is as important to management as it is to our shareholders. We have recently met with NASDAQ officials to discuss this situation. Based on our conversation, I believe we have worked out a plan that is reasonable and realistic. We expect to be granted a short term extension in June, providing that certain market criteria are met, that should allow us to continue making the progress in our business that, in turn, has been driving improvement in our financial performance.

We believe in time the financial markets will begin to reflect these positive attributes and we have taken steps to garner greater awareness of our "new" story with investors. Management has been doing a series of coordinated roadshows and public relations activities to increase awareness of our investment potential with institutional investors. The investor meetings thus far have been encouraging and reinforce our optimistic outlook. An updated corporate presentation is available on our website that I recommend all investors to review.

In short, the Digital Angel that you own today is now in a much better position to capitalize on growth opportunities going forward. The steps we have taken and progress we have made stems from our commitment to achieve net income profitability on a GAAP basis and to grow Digital Angel to increase shareholder value. We are moving closer to this goal and are optimistic that the plans we have implemented will be reflected in future financial results.

The entire Digital Angel management team remains focused and committed to achieve our goals, and would like to thank our employees, investors, and supporters.

Sincerely,

Joseph J. Grillo
President & Chief Executive Officer

About Digital Angel

Digital Angel (NASDAQ: DIGA) is 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.digitalangel.com and www.destronfearing.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 future of our business in current economic conditions, our ability to comply with listing requirements, and expected benefits of the restructuring program. 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 April 1, 2010, 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.

Contact:

Todd Fromer / Rob Fink
212-896-1215 / 212-896-1236
digitalangel@kcsa.com

Jay McKeage
(651) 554-1564
jmckeage@digitalangel.com

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