VeriChip Corporation's VeriMed Patient Identification System Now Has 140 Hospitals and Approximately 300 Physicians as Part of Its Network.

DELRAY BEACH, Fla. -- VeriChip Corporation:

VeriChip Trains Nearly 400 FEMA Employees on Its VeriTrace Emergency Management/Disaster Recovery Application

VeriChip Corporation, a subsidiary of Applied Digital Solutions (NASDAQ: ADSX), announced today that its Implantable Division, consisting of the patient ID and personal health information system called "VeriMed", the security application called "VeriGuard", and the emergency management system called "VeriTrace" achieved important milestones. VeriMed, the first and only FDA-approved microchip for patient identification and access to medical information has advanced adoption in key areas of hospital and physician acceptance.

Since early August, 26 new healthcare facilities have agreed to adopt the VeriMed system. This brings the total to approximately 140 emergency departments, of which 36 - located in seven states and Washington, D.C. - have fully implemented the technology and will use the VeriMed reader as standard protocol to scan patients that present unconscious, delirious or confused. The Company continues to provide readers to hospitals at no charge as part of its efforts to "seed" the infrastructure for the VeriMed patient identification system.

The expansion of the VeriMed physician network has increased nearly six-fold in 2006, indicating increasing acceptance of VeriMed by primary care and specialty physicians.

"We are optimistic that we will see a significant increase in the number of physicians in our physician network as we enhance our efforts to educate physicians about the benefits of VeriMed through participation in several large medical conferences scheduled over the next few months," stated Kevin McLaughlin, CEO of VeriChip Corporation. "We are further encouraged that our clinical study program with Blue Cross Blue Shield of New Jersey, which commences in September, will lead to increased adoption by physicians and health insurers."

VeriChip's VeriTrace application is designed to assist state and federal agencies to plan for and manage emergency situations and disaster recovery using implantable RFID technology. VeriChip has now trained nearly 400 FEMA employees on this technology including the Disaster Mortuary Operational Response Teams (DMORT) involved in the recovery efforts during the aftermath of Hurricane Katrina and responsible for Weapons of Mass Destruction recovery efforts. VeriChip continues to work with federal and state agencies on full implementation of this technology.

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 systems 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. 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. For more information on VeriChip, please call 1-800-970-2447, or email [e-mail]. Additional information can be found online at www.verichipcorp.com.

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 - News).

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.