VeriChip Corporation's VeriGuard Security Suite Chosen as Finalist For `Excellence in Product Innovation' Award

DELRAY BEACH, Fla.--(BUSINESS WIRE)--May 25, 2006--VeriChip Corporation, a subsidiary of Applied Digital (NASDAQ:ADSX), announced today that its VeriGuard(TM) Security Suite has been selected as one of three finalists for an "Excellence in Product Innovation" award recognizing "superior innovation or discovery in an advanced technology". The award is part of the B.C. Technology Industries Association's annual Technology Impact Awards to be presented on June 8, 2006, where VeriChip will join other technology companies.

"We're honored to have VeriGuard recognized as a finalist for such an exciting award and in such a competitive category," said Kevin McLaughlin, Chief Executive Officer, VeriChip Corporation. "With our human-implantable, Radio Frequency Identification (RFID) microchip technology at the heart of this product, this marks the third time we've received such recognition for our identification method and the applications we build around it."

“We're honored to have VeriGuard recognized as a finalist for such an exciting award and in such a competitive category”

The VeriGuard Security Suite offers RFID security by providing access control, personnel security, visitor management, and asset location in one, modular solution. It is also the first product to support implantable, wearable, and attachable RFID tag technologies and easily integrates with existing security systems. Once installed, facilities can:

-- Control access to designated areas

-- Protect personnel with real-time distress alerting

-- Track and record visitors within desired areas

-- Locate and protect assets

With these real-time monitoring choices and access control capabilities, multiple security applications are possible giving organizations the peace of mind, cost-effectiveness, and flexibility they need in their security systems.

For more information on VeriGuard, please contact 1-800-970-CHIP or email info@verichipcorp.com. Additional information can be found online at www.verichipcorp.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.

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