VeriChip Expands Hospital Infrastructure: Trinitas Hospital Adopts the VeriMed™ System; Third New Jersey Hospital Chooses VeriChip for Emergency Room

Business Wire, August 22, 2005

DELRAY BEACH, Fla. -- VeriChip Corporation, a subsidiary of Applied Digital (NASDAQ: ADSX) announced today that Trinitas Hospital, a leading healthcare facility based in Elizabeth, New Jersey has agreed to implement the VeriMed(TM) microchip system and will initiate a clinical evaluation program of the System in its two Emergency Departments for rapid patient identification purposes. Upon implementation, each facility will be able to scan patients to obtain their VeriChip ID Number and utilize the associated database information. Trinitas becomes the sixth hospital that has agreed to adopt the VeriMed System in their emergency department in the last five months and the third hospital in the State of New Jersey to employ the VeriMed System. Previously, Hackensack University Medical Center and another large hospital network in New Jersey selected the System for use in its emergency room.

Commenting on Trinitas Hospital's decision to enable its Emergency Department physicians and staff to utilize the VeriChip System, Kevin McLaughlin, CEO of VeriChip Corporation commented, "We are pleased that Trinitas Hospital, a progressive and well respected medical center, recognizes that the VeriChip technology can enhance clinical and emergency care and expand the use of its patient information system across all clinical services. Area physicians will soon be able to recommend a VeriMed microchip to patients knowing that Trinitas Hospital has the capacity of both reading the microchip and accessing electronically stored medical information. Together with Trinitas, we anticipate the result will be more rapid and accurate access to crucial medical information when patient communication is diminished or absent. By attracting three of the leading hospitals in the northern New Jersey area, we have taken important steps to gain traction in the New York Metropolitan area, which represents millions of potential patients for VeriChip."

Gary Horan, President of Trinitas Hospital stated, "We look forward to utilizing the VeriMed System to assist in patient identification and access to medical information. Particularly beneficial for patients with chronic illnesses, this modality will assist us in expediting the quality level of care which we provide."

About Trinitas Hospital:

Established in January, 2000, following the consolidation of St. Elizabeth Hospital and Elizabeth General Medical Center, Trinitas Hospital is a full-service healthcare facility serving those who live and work in Eastern and Central Union County.

Operating on two major campuses, Trinitas Hospital has 531 beds, including a 120-bed long-term care center. Trinitas Hospital is proud to offer state-of-the-art medicine backed by compassion and competence.

About VeriChip - "The First RFID Company for People"

VeriChip is a subsidiary of Applied Digital and the only company to provide both implantable and wearable RFID identification and 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 provided by VeriChip systems. 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.