VeriChip Announces Wireless Integration with Advanced Ricoh Camera and Introduces New VeriTrace Application at 58th Annual American Academy of Forensic Sciences (A.A.F.S.) Meeting on February 21st in Seattle, WA.

DELRAY BEACH, Fla. -- VeriTrace Is the Only End-to-End Implantable Tagging Solution for Accurate Tagging and Identification of Remains and Associated Evidentiary Items

VeriChip Corporation, a subsidiary of Applied Digital (NASDAQ: ADSX), announced today that it will introduce its new VeriTrace system at the 58th Annual American Academy of Forensic Sciences (A.A.F.S.) for medical examiners, forensic scientists, criminalists and related organizations in Seattle, WA, on Tuesday, February 21st. VeriChip implantable microchips were initially used in a forensic application to assist in the identification of Hurricane Katrina victims that were recovered in the aftermath of Hurricane Katrina.

VeriTrace includes a unique RFID implantable microchip, an advanced Ricoh digital camera and a web-enabled data base for gathering and storing information and images. The system allows the user to accurately tag, track, inventory and capture the images of human remains and evidentiary items associated with small casualties, mass disasters or crime scenes. The features of VeriTrace reveal a complete end-to-end solution for medical examiners, coroners, forensic scientists, sheriff's departments, police organizations, criminalists, crime scene investigators and the like.

The VeriChip RFID implantable microchip is inserted in the remains at the onset of processing. Subsequent to the insertion, a VeriChip scanner is waved over the insertion area and "reads" the VeriChip 16 digit identifier. The Ricoh digital camera has the ability to read the VeriChip ID number via a wireless Bluetooth(R) connection to the VeriChip scanner. Once the VeriChip ID is captured by the camera, it is embedded into every subsequent image taken and permanently associated with those images. The data and images gathered are then uploaded or entered into a proprietary web-enabled database or an existing database system at the intended facility. The database functionality ensures the precise collection, storage and inventory of all data and images related to the remains and evidentiary items.

This VeriTrace application feature not only provides the user with the ability to inventory and track all remains, associated evidentiary items and images, but it also presents the user with an efficient, accurate and reliable solution to the daily needs of their facility.

A full demonstration of the VeriTrace application will be scheduled at multiple times throughout the A.A.F.S. Meeting at the VeriChip exhibit booth #213 in the Washington State Convention & Trade Center, Seattle, WA. It will also supplement the dialogue presented by Gary Hargrove, Coroner of Harrison County, MS, and the coroner in charge of FEMA's DMORT (Disaster Mortuary Operational Response Team) facility in Gulf Port, MS, during the aftermath of Hurricane Katrina. Mr. Hargrove will be discussing, among other items, his experience using the VeriChip implantable microchip, its advantages, how it worked, the information he used the VeriChip to track and his opinion of the cost benefit of using the VeriChip.

About VeriChip Corporation

VeriChip Corporation, headquartered in Delray Beach, Florida, develops, markets and sells radio frequency identification, 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 system for local-area location and identification purposes. VeriChip recently began to market its VeriMed(TM) patient identification system which is used to rapidly and accurately identify people who arrive in an emergency room and are unable to communicate. VeriChip's VeriMed(TM) patient identification 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.

About Applied Digital - "The Power of Identification Technology"

Applied Digital develops innovative identification and security products for consumer, commercial, and government sectors worldwide. The Company's 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 the leader in identification technology. 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.

About Ricoh Corporation

Ricoh Corporation, headquartered in West Caldwell, N.J., is a subsidiary of Ricoh Company Ltd., the 70-year-old leading supplier of office automation equipment and electronics, with fiscal year 2004 sales in excess of $17 billion, a 1.9 percent increase over the previous year.

Ricoh Corporation is a leading provider of document solutions. Ricoh's fully integrated hardware and software products help businesses share information efficiently and effectively by enabling customers to control the input, management and output of documents.

Ricoh Corporation directly or through its subsidiaries markets and distributes products in North, Central and South America.

Information about Ricoh's complete range of products and services can be accessed on the World Wide Web at www.ricoh-usa.com.

About Ricoh's Advanced Camera

The Ricoh advanced digital camera is specifically designed to meet the needs of businesses and provides for complete end-to-end automated workflow solutions. For information contact the Ricoh camera solution office at 909-890-9039.