Applied Digital's Wholly-Owned Subsidiary, Thermo Life Energy Corp., Completes Development of Next Generation, More Powerful Thermo Life(R).

DELRAY BEACH, Fla. -- New Version Generates 3.6 Times More Power Than Predecessor, Expanding Alternative Energy Applications

Applied Digital (NASDAQ:ADSX), a leading provider of identification and security technology, announced today that its wholly-owned subsidiary, Thermo Life Energy Corp., has developed a next generation, lower impedance Thermo Life(R) that has an electrical power output of 100 uW (38uA) at a 5 degree C temperature gradient. This power output is more than 3.57 times greater than the power output of the previous Thermo Life, which was able to achieve a power output of 28 uW at a 5 degree C temperature gradient. The enhanced power capabilities are expected to expand the number of alternative energy applications available for the technology.

Thermo Life is a micro-technology device that produces power (currently 3V, 100 uW, 38uA) by converting heat into electrical energy, and is the culmination of eight years of research and development. The next generation, lower impedance, round-shaped Thermo Life measures 9.6 mm in diameter and is 35% smaller, by volume, than the previous version. The next generation Thermo Life also offers a more efficient low power output while contributing to a higher conversion efficiency.

Commenting on the achievement, Marc Poulshock, President of Thermo Life Energy Corp., stated, "By achieving a much greater power output level, Thermo Life has become a viable power source for numerous additional low-power, real-world applications, including active RFID tags, sensor networks and ZigBee enabled devices. Now, a small temperature gradient between two sources can create an even greater everlasting power source for these low-power devices. The fact that it can recharge a capacitor, thin film battery or similar power storage component at a rate that is more than 3 1/2 times faster than its predecessor is a remarkable achievement that should create more opportunities as an alternative energy source. This new achievement should permit Thermo Life to play a greater role in removing the enormous hurdle of changing batteries presented by the deployment of thousands of ZigBee enabled devices in a network."

About Thermo Life Energy Corp. - "Powered By Thermo Life" (TM)

Thermo Life(R) is a revolutionary micro-technology device that is the culmination of eight years of research and development. Thermo Life is a new, unique, small and compact Low Power Thermoelectric Generator ("LPTG") and viable energy source for low-powered devices such as micro sensor systems, ZigBee chipsets, wearable electronics, implantable medical devices, active RFID tags and numerous other applications. Wherever a temperature difference exists in any environment, Thermo Life is capable of producing an output power. Even small temperature differences of less than 5 degrees Celsius can provide a source of thermal energy.

Thermo Life converts heat to electrical energy through its thermopile couples using the thermopile principle (known also as the Seebeck effect). When both heat couple plates are thermally connected with a heat source and a heat sink, heat flows through thermopiles and is converted directly into electrical energy. For further information please visit www.PoweredByThermoLife.com.

About Applied Digital - "The Power of Identification Technology"

Applied Digital develops innovative identification and security products for consumer, commercial, and government sectors worldwide. The Company's unique and often proprietary products provide identification and security systems for people, animals, the food supply, government/military arena, and commercial assets. Included in this diversified product line are RFID applications, end-to-end food safety systems, GPS/Satellite communications, and telecomm and security infrastructure, positioning Applied Digital as the leader in identification technology. Applied Digital is the owner of a majority position in Digital Angel Corporation.

Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and the Company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.