VeriChip Corporation Enters into Distribution Agreement With Ingersoll-Rand Company Limited

Business Wire, Jan 10, 2006

DELRAY BEACH, Fla. -- VeriChip Corporation, a subsidiary of Applied Digital (NASDAQ: ADSX), a leading provider of identification and security technology, announced today that it has entered into a distribution agreement with Ingersoll Rand Security Technologies, a sector of Ingersoll-Rand Company Limited (NYSE:IR). Under the terms of the agreement, Ingersoll Rand Security Technologies has the non-exclusive right to promote, sell, install and maintain certain of VeriChip's infant protection, wander prevention and asset tracking products, as well as the related Auto-ID platform and application development interface, in healthcare, commercial and industrial markets in North and South America, including the Caribbean and Hawaii. Ingersoll Rand Security Technologies is a global provider of mechanical, electronic, and integrated security solutions.

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 system 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. VeriChip's VeriMed(TM) patient identification 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.