About the size of a grain of rice, VeriChip(TM) is the world's first subdermal, radio frequency identification (RFID) microchip that can be used in a variety of security, financial, emergency identification and other applications.
The VeriPay announcement came just a few days after a USA Today article (November 17, 2003) about emerging technologies highlighted one of the major limitations of using RFID technology for payment and credit transactions. After discussing various potential formats for RFID payment systems, including cards, earrings or pens, the USA Today article stated: "Still, experts note that one big hurdle remains for RFID systems: security. Lose your RFID-enabled card or earring, and someone else could easily use it to run up charges - especially if no signature is required."
In that same article, an executive with a major credit card company said this about his company's RFID payment technology: "Ultimately, it could be embedded in anything - someday, maybe even under the skin."
At ID World 2003 in Paris, Mr. Silverman made the point that the subdermal RFID VeriPay technology specifically addresses the security issue. VeriPay's unique, under-the-skin format offers a much more secure, tamper-proof, and loss-proof solution. VeriPay brings to consumers the benefits of fast and reliable RFID technology along with the security of a subdermal format.
In announcing VeriPay to ID World delegates, Mr. Silverman expressed his belief that VeriPay has enormous marketplace potential and invited banking and credit companies to partner with VeriChip Corporation in developing specific commercial applications, beginning with appropriate pilot programs and other market tests, for the VeriPay subdermal RFID solution.
About ID World 2003
ID World is organized by Wise Media, S.p.A., based in Milan, Italy. This year special attention will be given to the future of security systems. The modern security infrastructure relies on specialized systems, software applications and technical standards built on different foundations for the physical world (i.e. access control to buildings) and the virtual world (i.e. IT security). With industrial spies, terrorists, hackers and vandals increasing their ability to operate in both environments, the traditional compartmental approach to security is evolving towards an increasingly holistic view. Key industry players that traditionally focused either on physical or digital security explain how the boundaries of these worlds are blurring and how global security infrastructures are converging to address both environments with integrated solutions.
Over 30 speakers will take the stage at ID WORLD 2003, a majority of which are senior corporate executives and key industry players. Confirmed speakers include: David Slinger, General Manager of Texas Instruments RFID; Mauro Benetton, Marketing Manager of the Benetton Group and President of Lab ID; Dr Joseph Atick, President and CEO of Identix, Joseph Grillo, President and CEO of Assa Abloy ITG; General John Watkins, former director of the Pentagon's Defense Information Systems Agency; and Francois Darcy, Directeur Projet Titre Fondateur - Ministere de l'Interieur, Republique Francaise.
VeriChip is a subdermal, radio frequency identification (RFID) device that can be used in a variety of security, financial, emergency identification and other applications. About the size of a grain of rice, each VeriChip product contains a unique verification number that is captured by briefly passing a proprietary scanner over the VeriChip. The standard location of the microchip is in the triceps area between the elbow and the shoulder of the right arm. The brief outpatient "chipping" procedure lasts just a few minutes and involves only local anesthetic followed by quick, painless insertion of the VeriChip. Once inserted just under the skin, the VeriChip is inconspicuous to the naked eye. A small amount of radio frequency energy passes from the scanner energizing the dormant VeriChip, which then emits a radio frequency signal transmitting the verification number. In October 2002, the US Food and Drug Administration (FDA) ruled that VeriChip is not a regulated device with regard to its security, financial, personal identification/safety applications but that VeriChip's healthcare information applications are regulated by the FDA. VeriChip Corporation is a wholly owned subsidiary of Applied Digital Solutions (Nasdaq: ADSX). For more information about VeriChip, visit www.adsx.com.
About Applied Digital Solutions, Inc.
Applied Digital Solutions is an advanced technology development company that focuses on a range of life-enhancing, personal safeguard technologies, early warning alert systems, miniaturized power sources and security monitoring systems combined with the comprehensive data management services required to support them. Through its Advanced Technology Group, the Company specializes in security-related data collection, value-added data intelligence and complex data delivery systems for a wide variety of end users including commercial operations, government agencies and consumers. Applied Digital Solutions owns a majority position in Digital Angel Corporation (AMEX: DOC). For more information, visit the Company's website at www.adsx.com.
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.