VeriChip Corporation and Austco Communication Systems Bring the Hugs and MyCall Systems to Australia.

DELRAY BEACH, Fla. -- VeriChip Corporation, a subsidiary of Applied Digital (NASDAQ: ADSX), announced today the first sales of its Hugs(R) infant protection system and MyCall(R) emergency response system in Australia.

In partnership with Austco Communication Systems, its dealer outside North America for these products, VeriChip will install Hugs systems at St. John of God Hospital, in Berwick, Victoria and Gympie Hospital, in Gympie, Queensland; and MyCall systems at Alice Springs Hospital, in Alice Springs, Northern Territory, and for the Uniting Care group in Sydney, New South Wales.

"We are very pleased with the rapid adoption of Hugs and MyCall in Australia, with four major system sales in the space of only a few months," said Kevin McLaughlin, Chief Executive Officer. "This is a clear sign that the features and ease-of-use that have made Hugs a leading infant protection system in North America are just as compelling in international markets."

The Hugs system provides hospital with protection against infant abduction and mother/infant mismatches, while the MyCall system offers staff the means to call for assistance from anywhere within the system coverage area.

Speaking for Austco Communication Systems, Robert E. Grey, President and CEO, commented, "Our Australian health care customers are demanding cutting-edge solutions to protect their infants and staff. The Hugs and MyCall systems deliver the value and security they require. We expect more sales of these products in the coming months."

For more information on the Hugs or MyCall systems, please contact 1-866-559-6275 or email [e-mail]. Additional information can be found online at www.verichipcorp.com.

About AUSCTO

Australian-based Austco Communication Systems has been a world leader since 1985 in the highly specialized field of electronic communications for healthcare and secure accommodation environments. Austco designs and manufactures dedicated microprocessor based and computer based nurse call systems for the hospital, long-term care, and dementia care markets. There are over 3,000 Austco call systems installed throughout 27 countries worldwide. For more information on Austco, visit the company's website at www.austco.com.

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.

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.