VeriChip Corporation's Recent Acquisition, eXI Wireless, Is Added to U.S. General Services Administration Schedule

DELRAY BEACH, Fla.--()--May 19, 2005--

  Schedule Allows All Federal Government Authorities, Agencies and Facilities to Immediately Purchase eXI's Products  



VeriChip Corporation, a wholly owned subsidiary of Applied Digital (NASDAQ:ADSX), today announced that its recent acquisition, eXI Wireless, now VeriChip Corporation, has been added to the U.S. General Services Administration schedule, GSA# GS-35-F-0144L. eXI is working in cooperation with Information Access Solutions, Inc. (IAS) of Woodbridge, VA, a leading provider of IT solutions for both commercial and government sectors. IAS is a Service-Disabled, Veteran Owned Small Business.

The GSA contract enables all Federal Government authorities, agencies and facilities worldwide to promptly purchase eXI's products. eXI's external RFID-based Wander Protection and Infant Security Products are already installed and operable at a number of Veterans Administration and DOD Medcom hospitals and clinics. With the integration of external RFID-based security solutions for people, the company now offers a myriad of implantable, wearable, and attachable RFID products for use in healthcare, government and commercial applications.

Commenting on the company's addition to the General Services Administration Schedule, Kevin McLaughlin, Chief Executive Officer, VeriChip Corporation, said, "This event will allow VeriChip Corporation to build on existing installations within the Federal Government. These products have been installed and used by a number of Veterans Administration and DOD Medcom hospitals and clinics for several years, primarily for wander protection and infant security. Now moving forward, we anticipate expanding the use of our RFID infrastructure and tags to protect, track and locate assets and provide access control security within government facilities. These types of applications are actually being driven under the U.S. Department of Homeland Security, allowing us to bring the two decades of RFID experience that VeriChip Corporation now provides into broader situations and applications within the government."

About VeriChip

VeriChip is a wholly owned subsidiary of Applied Digital and the only company to provide both implanted and external RFID security solutions for people, their assets, and their environments. From the world's first and only FDA-cleared, human-implantable RFID microchip to the only patented active RFID tag with skin-sensing capabilities, VeriChip leads the way in next-generation RFID technologies. Today, over 3,000 installations worldwide in healthcare, security, industrial, and government markets benefit from both the protection and efficiencies VeriChip's innovation delivers. For more information on VeriChip, please visit www.verichipcorp.com.

About Applied Digital

Applied Digital develops innovative security products for consumer, commercial, and government sectors worldwide. The Company's unique and often proprietary products provide security 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 of Security Through Innovation. 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.

Contacts

CEOcast, Inc. for Applied Digital
Ken Sgro, 212-732-4300
kensgro@ceocast.com

Contacts

CEOcast, Inc. for Applied Digital
Ken Sgro, 212-732-4300
kensgro@ceocast.com