Applied Digital's Government Telecommunications -GTI- Unit Wins Multiyear Contract from the US Air Force.

DELRAY BEACH, Fla. -- $2.26 million contract is for maintenance and support of telecommunications facilities at the Rome NY Experimental Research Center.

Applied Digital (Nasdaq: ADSX), a provider of security through innovation(TM), today announced that its wholly owned subsidiary, Government Telecommunications, Inc. (GTI), has been awarded a contract, from the United States Air Force, valued at approximately $2.26 million to install, maintain and support telecommunications facilities at the Air Force Experimental Research Center in Rome New York. The order is for 1 base year plus four, 1-year options.

"This contract is an excellent example of the diverse array of services we provide the federal government," said Scott R. Silverman, Chairman and CEO of Applied Digital. "The opportunities for GTI are significant, and the recent contract modification from the Federal Supply Service of the General Services Administration to add 11 categories of professional services to the information technology equipment, services and software already on the contract is expected to result in significant new projects in program management, engineering, network design and installation."

GTI is headquartered in Chantilly, Virginia. GTI specializes in designing, deploying and maintaining voice, data and video telecommunications networks for agencies of the federal government. Key customers include US Postal Service, the Departments of Defense, Justice and Agriculture, and the Social Security Administration.

About Applied Digital

Applied Digital develops innovative security products for consumer, commercial, and government sectors worldwide. Our unique and often proprietary products provide security 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 of Security Through Innovation. Applied Digital is the owner of a majority position in Digital Angel Corporation (AMEX:DOC - News). For more information, visit the company's website at http://www.adsx.com.

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