Digital Angel to Supply UK Ministry of Defence

SO. ST. PAUL, MN--(BUSINESS WIRE)--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 its United Kingdom-based subsidiary, Signature Industries, has signed a $1.5 million contract with the UK Ministry Of Defence to supply search and rescue beacon equipment (SARBE). The contract calls for deliveries to start immediately and will run over a maximum 21 months from contract award.

The Company will supply its high-performance SARBE 6-406G personal locator beacons to be used in an undisclosed application in the UK armed forces. The SARBE 6-406G PLB offers digital distress transmissions with GPS and fully automatic activation. The equipment supplied replaces older equipment that will soon become obsolete due to changes in satellite monitoring.

Kevin McGrath, president and chief executive officer of Digital Angel, said, "This sale marks the fourth contract between the UK MoD and Signature Industries to supply our latest generation 406MHz survival distress beacons into the armed forces of the UK, and illustrates the confidence that exists in SARBE branded equipment. As importantly, our SARBE business unit continues to build momentum with new orders which bodes well for 2007 and 2008."

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), which also owns a majority position in VeriChip Corporation (NASDAQ:CHIP).

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