Applied Digital's VeriChip Corporation, an RFID Company for People, Introduces New Product Offerings; Improved Patient Wander Protection to Be Unveiled at National Event This Week.

DELRAY BEACH, Fla. -- VeriChip Corporation, a wholly owned subsidiary of Applied Digital (NASDAQ:ADSX), today announced the release of its improved patient wander protection solution in conjunction with its recent acquisition of eXI Wireless Inc. With the integration of eXI Wireless' external security solutions for people, VeriChip Corporation now provides leading edge security solutions utilizing both implanted and external RFID products for people. The company now, through the introduction of improved external products, offers a complete wander protection system in the healthcare industry.

"This product offering continues VeriChip's evolution, as we are now able to offer RFID-related products to enhance our existing medical and security portfolio of products," said Kevin McLaughlin, Chief Executive Officer, VeriChip Corporation. "The improvements we've made to our RoamAlert patient wander protection system ensure our customers the best possible protection and cost savings when it comes to the people they care about."

RoamAlert, the external next-generation patient wandering protection system utilizing wearable and attachable RFID tagging technology, now offers increased levels of patient safety and freedom while saving time and money associated with the tedious task of locating patients that have wandered, equipment that has been misplaced or stolen, and staff that may need immediate assistance. The new functionality already in use with RoamAlert Integrity product installations throughout North American nursing homes and assisted living facilities, extends beyond the standard automatic alerting when patients leave or enter pre-defined exits or areas and includes:

--Real-time location of patients and residents,

--Facility-defined containment zones for different classes of patient wanderers,

--One-touch distress alerting for staff or patients enabling a quick call for help,

--Equipment tracking for the protection and locating of such common assets as wheelchairs, IV stands, or expensive multimedia equipment.

For more information, please contact VeriChip at 800-667-9689 or [e-mail]. The new RoamAlert modules will be on display at the Assisted Living Federation of America's National Conference in Atlanta, Georgia running May 4-6.

About VeriChip

VeriChip is a wholly owned subsidiary of Applied Digital and the only company to provide both implanted and external RFID security solutions for people, their assets, and their environments. From the world's first and only FDA-cleared, human-implantable RFID microchip to the only patented active RFID tag with skin-sensing capabilities, VeriChip leads the way in next-generation RFID technologies. Today, over 3,000 installations worldwide in healthcare, security, industrial, and government markets benefit from both the protection and cost savings VeriChip's innovation delivers. For more information on VeriChip, please visit www.verichipcorp.com.

About Applied Digital

Applied Digital develops innovative security products for consumer, commercial, and government sectors worldwide. The Company's 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 telecom 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).

For more information, visit the company's website at http://www.adsx.com.

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.