Digital Angel Corporation Receives Order to Supply Serbia with 200,000 Pet Microchips

Business Wire, June 12, 2007

SO. ST. PAUL, Minn. -- Digital Angel Corporation (AMEX:DOC), an advanced technology company in the field of rapid and accurate identification, location tracking and condition monitoring of high-value assets, announced today it has received an order to supply the Department of Veterinary Services in Serbia with 200,000 pet identification microchips. The microchips will be used as part of a Serbian national campaign to build responsible pet ownership. Serbia plans to provide the pet identification microchips as well as rabies vaccination for free, to create a safe environment for pet adoption and thereby to control and reduce the stray dog population.

Dr. Bratislav Milosevic, Head of the Institute of Veterinary Medicine of Serbia, who administered the tender, said, "We are happy to use these high quality microchips produced in an ISO certified transponder-manufacturing plant that were offered to us at a competitive price. This is exactly the combination we were looking for and which will guarantee success for our project. Furthermore, as an additional advantage, Digital Angel was able to provide these microchips to us in a very short period of time."

Digital Angel President and Chief Executive Officer Kevin McGrath said, "This order from Serbia demonstrates that, around the world, governments and pet owners alike are becoming increasingly aware of options that enable them to protect their pets. We hope to continue to expand our presence in the pet identification market, both domestically and abroad, and we have the capacity to do so."

About Digital Angel Corporation

Digital Angel Corporation (www.DigitalAngelCorp.com) develops and deploys sensor and communications technologies that enable rapid and accurate identification, location tracking, and condition monitoring of high-value assets. Applications for the Company's products include identification and monitoring of humans, pets, fish, poultry and livestock through its patented implantable microchips; location tracking and message monitoring of vehicles and aircraft in remote locations through systems that integrate GPS and geosynchronous satellite communications; and monitoring of asset conditions such as temperature and movement, through advanced miniature sensors. Digital Angel Corporation is majority-owned by Applied Digital Solutions, Inc. (Nasdaq:ADSX), which also owns a majority position in VeriChip Corporation (NASDAQ:CHIP).

This press release includes forward-looking statements, including statements regarding the effectiveness of the microchips in meeting the stated objectives. The Company wishes to caution readers that certain important factors and various risks may have affected and could in the future affect the Company's actual results and could cause the Company's actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company. With respect to the Company's expectations expressed in this press release, such risk factors include, but are not limited to, the performance of the product according to Company expectations. This information is also qualified in its entirety by cautionary statements and risk factor disclosures contained in the Company's Securities and Exchange Commission filings, including the Company's annual report on Form 10-K for the fiscal year ended December 31, 2006 and its quarterly reports. The Company can offer no assurances that any projections, assumptions or forecasts made or discussed in this release will be met, and investors should understand the risks of investing solely due to such projections. The Company undertakes no obligation to revise any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.