VeriChip Corporation and Austco Communication Systems Introduce the Hugs(R) Infant Protection System in the United Kingdom

Business Wire
Oct. 20, 2005

DELRAY BEACH, Fla.--(BUSINESS WIRE)--Oct. 19, 2005--VeriChip Corporation, a subsidiary of Applied Digital (NASDAQ:ADSX), announced today that it has shipped its first Hugs(R) infant protection system for use in the United Kingdom. The sale and installation of the Hugs system is being coordinated by VeriChip's international distributor, Australia-based Austco Communication Systems Pty, Ltd.

VeriChip's Hugs infant protection system is designed to prevent mismatching and deter abduction of newborn infants from hospitals, and is part of VeriChip's portfolio of RFID healthcare security products.

"The entry of the Hugs system into the U.K. is another example of our commitment to develop the international healthcare security market," remarked Kevin McLaughlin, Chief Executive Officer of VeriChip Corporation.

Speaking for Austco Communication Systems, Robert E. Grey, President and CEO, commented, "The integration of the Hugs infant security system with Austco's MediCom staff and emergency call system is highly attractive to our worldwide hospital clients."

About Austco

Based in Perth, Western Australia, Austco Communication Systems Pty, Ltd. 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 4,000 Austco call systems installed throughout 41 countries worldwide supported by their 9 international offices. For more information on Austco, visit the company's website at www.austco.com.

About VeriChip - "RFID for people"

VeriChip is a subsidiary of Applied Digital and provides state-of-the-art RFID security solutions that identify, locate, and protect people, their assets, and their environments. From the world's first and only FDA-cleared, human-implantable RFID microchip to the only active RFID tag with patented skin sensing capabilities, VeriChip's technology ensures the safety and security organizations are looking for. Its market-leading infant protection, wander prevention, asset tracking, and patient identification applications make VeriChip the predominant RFID solutions provider in the healthcare industry. And today, VeriChip systems are installed in over 4,000 locations worldwide in healthcare, security, industrial, and government markets making it the world's premier RFID company for people. For more information on VeriChip, please visit 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).

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.