Applied Digital Completes Development of Next-Generation Thermo Life That Creates More Efficient Power Output; Thermo Life is a Viable Energy Source for ActiveRFID Tags, ZigBee Chipsets, Wearable Electronics and Medical Devices.

DELRAY BEACH, Fla. -- Applied Digital (NASDAQ:ADSX), a provider of Security Through Innovation(TM), announced today that it has completed development of the next- generation Thermo Life(TM).

Thermo Life(TM) produces power (currently 3V) by converting heat energy into electrical energy. The next-generation round-shaped Thermo Life(TM) is a micro-technology device that is the culmination of 8 years of research and development. The new round Thermo Life(TM) measures 9.3 mm in diameter, and weighs 230 mg, nearly 50% lighter and smaller than the original Thermo Life(TM).

The new Thermo Life(TM) design creates a more efficient power output and contributes to higher conversion efficiency. The new design also increases potential applications for Thermo Life(TM) such as a viable energy source for active RFID tags, ZigBee Chipsets, wearable electronics, medical devices and micro-sensor systems.

With the recent acquisition of eXI wireless, VeriChip Corporation now offers active RFID tags in a healthcare-security environment. As VeriChip - an RFID Company for People - evolves, Thermo Life(TM) can be used as an alternative power source for external RFID tags in a healthcare environment providing a lifetime power source and negating the need for a change of batteries.

The new wireless standard of 802.15.4, called ZigBee, offers, for the first time, a standards-based wireless platform optimized for the unique needs of remote monitoring and control applications including simplicity, reliability, low-cost, and above all, low-power. The new low-power requirement of ZigBee can be supported by Thermo Life(TM) negating the need for replacement of batteries. Consumer, commercial, industrial, and government markets can deploy new ZigBee-enabled devices without the concern of changing batteries in multiple devices.

With the ability of a ZigBee enabled network to include (currently) up to 65,000 devices, the deployment hurdle created by the requirement to change batteries is removed when Thermo Life(TM) is used as the ZigBee power source.

Commenting on this development, Chairman and CEO of Applied Digital, Scott R. Silverman stated, "This next-generation Thermo Life(TM) is a direct result of VeriChip's acquisition of eXI Wireless. Knowing that the acquisition was in the process, our research and development personnel aimed to improve the Thermo Life(TM) product to provide a potential power source for an active RFID tag for People."

Marc Poulshock, the President of Thermo Life(TM) Energy Corp., a wholly owned subsidiary of Applied Digital, commended the achievement of the technology development team on the Next-Generation Thermo Life(TM). He also stated, "Thermo Life(TM) is now positioned to become an integral part of the power supply requirements for many real world applications including active RFID tags and ZigBee enabled devices. With the recent acquisition of eXI Wireless by VeriChip, we have the ability to move forward in an aggressive fashion to establish Thermo Life(TM) as the power source for the active RFID tags presented by VeriChip. We also have a strong ZigBee ally that stems from eXI's involvement, since 2001, in the establishment of the 802.15.4 ZigBee wireless standard. Since Thermo Life(TM) has greater access to this expansive technology team at VeriChip, we will be working to develop a power supply for ZigBee enabled devices in a more expeditious fashion. Ultimately, Thermo Life(TM) can play a leading role in removing the enormous hurdle presented after deploying thousands of ZigBee enabled devices... the requirement to change the batteries."

For more information on ZigBee and the ZigBee Alliance see www.ZigBee.org

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 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).

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.