Applied Digital Anticipates in Excess of $1.5 Million in Annual Savings Through Consolidation of Canadian Operations at VeriChip Corporation.VeriChip to consolidate all Canadian HealthCare Security Operations in Ottawa while closing its operations in Vancouver DELRAY BEACH Delray Beach, resort city (1990 pop. 47,181), Palm Beach co., SE Fla., on the Atlantic coast; settled 1895, inc. 1911. Mostly residential, Delray Beach is also the trade center for a citrus-fruit and vegetable-growing region. , Fla. -- Applied Digital Solutions (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ADSX ADSX Applied Digital Solutions, Inc. (stock symbol) ) announced today that its subsidiary, VeriChip Corporation VeriChip Corporation, a wholly owned subsidiary of Applied Digital (Nasdaq: ADSX), markets a line of Radio Frequency Identification (RFID) Devices (including VeriChip) used in security, financial, emergency identification, and other applications. , will consolidate its Canadian healthcare security operations into an existing facility located in Ottawa, Ontario, Canada. The consolidation will entail the closing of operations in Vancouver, British Columbia. The consolidation will eliminate duplicative functions and should improve operating efficiencies, positioning VeriChip to execute on strategic initiatives to become the leading provider of RFID (Radio Frequency IDentification) A data collection technology that uses electronic tags for storing data. The tag, also known as an "electronic label," "transponder" or "code plate," is made up of an RFID chip attached to an antenna. systems for the healthcare industry. Applied Digital believes the consolidation will result in annual savings in excess of $1.5 million and will have no effect on revenue growth. Applied Digital expects to accrue one-time charges for the consolidation in the range of $0.8 million to $1.4 million, approximately $0.2 million of which are related to non-cash charges. The Company anticipates that $0.6 million to $1.2 million of these charges will be taken in the fourth quarter of 2006. About Applied Digital - "The Power of Identification Technology" Applied Digital is the parent company of VeriChip Corporation. Applied Digital develops innovative identification and security products for consumer, commercial, and government sectors worldwide. Through Applied Digital's affiliates, the company offers 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 a leader in identification technology. Applied Digital is the owner of a majority position in Digital Angel Corporation (AMEX AMEX See: American Stock Exchange :DOC). About VeriChip Corporation VeriChip Corporation, headquartered in Delray Beach, Florida Delray Beach is a city in Palm Beach County, Florida, USA. As of the 2000 census, the city had a total population of 60,020. As of 2004, the population estimated by the U.S. Census Bureau is 64,150. , develops, markets and sells radio frequency identification See RFID. , or RFID, systems used to identify, locate and protect people and assets. VeriChip's goal is to become the leading provider of RFID systems for people in the healthcare industry. VeriChip sells passive RFID systems for identification purposes and active RFID systems for local-area location and identification purposes. VeriChip recently began to market its VeriMed[TM] Patient Identification System used to rapidly and accurately identify people who arrive in an emergency room and are unable to communicate. This system uses the first human-implantable passive RFID microchip, the implantable VeriChip[TM], cleared for medical use in October 2004 by the United States Food and Drug Administration United States Food and Drug Administration (FDA), n.pr a unit of the Public Health Service created to protect the health of the nation against impure and unsafe foods, drugs, and cosmetics. . For more information on VeriChip, please call 1-800-970-2447, or email info@verichipcorp.com. Additional information can be found online at www.verichipcorp.com. Statements about Applied Digital'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 Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and Applied Digital'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. |
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