Beth Israel Deaconess Medical Center, Boston, Agrees to Implement VeriChip Technology; Beth Israel Deaconess Will Employ Readers in Emergency Department.

DELRAY BEACH, Fla. -- VeriChip Corporation, a wholly owned subsidiary of Applied Digital (NASDAQ: ADSX), announced today that CareGroup Healthcare Systems, the parent company of Beth Israel Deaconess Medical Center, a Harvard Medical School affiliate, will install a VeriChip(TM) System in the Emergency Department of the Beth Israel Deaconess Medical Center (BIDMC) for clinical use. The facility will now be able to access VeriChip identification numbers and retrieve previously entered healthcare information entered in the CareGroup's "CareWeb" electronic medical record system.

Commenting on the BIDMC's decision to enable its ER physicians and staff to utilize the VeriChip Reader, Dr. Richard Seelig, Vice President of Medical Applications for VeriChip commented, "We are pleased that this progressive and prestigious institution recognizes that the VeriChip technology can enhance the effectiveness of its CareWeb electronic medical record, providing the capability of linking unconscious or confused patients with their medical record system. BIDMC's decision means Boston area patients will know that this facility is enabled to read their VeriChip and can access their important healthcare information. Area physicians can now recommend the placement of a VeriChip knowing that a major Boston regional facility has the capability of both reading the VeriChip and accessing electronically medical information. It is anticipated that the result will be more rapid and accurate access to crucial medical information when patient communication is diminished or absent."

CareGroup, with 3,000 doctors, 12,000 employees and 2 million patients, has been named both one of the "Most Wired" and one of the "Most Wireless" health and hospital systems in the nation according to the 2004 Most Wired Survey and Benchmarking Study. Beth Israel Deaconess Medical Center is a 556-bed patient care, teaching and research affiliate of Harvard Medical School, and ranks third in National Institutes of Health funding among independent hospitals nationwide. BIDMC is clinically affiliated with the Joslin Diabetes Center and is a research partner of Dana-Farber/Harvard Cancer Center. BIDMC is the official hospital of the Boston Red Sox. For more information, visit www.bidmc.harvard.edu.

About VeriChip

VeriChip Corporation is a wholly owned subsidiary of Applied Digital. The VeriChip product is a sub dermal RFID micro transponder that can be used in a variety of security, financial, emergency identification and healthcare applications. About the size of a grain of rice, each VeriChip device contains a unique verification number that is captured by briefly passing a proprietary scanner over the VeriChip. In October 2004, the U.S. Food and Drug Administration (FDA) cleared VeriChip for medical applications in the United States. VeriChip is not an FDA-regulated device with regard to its security, financial, personal identification/safety applications and is MRI compatible.

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).

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