Portability feature to help VeriChip develop new applications and open markets for its RFID asset-based tracking technology DELRAY BEACH, Fla., Jan. 8 /PRNewswire-FirstCall/ -- Applied Digital Solutions (NASDAQ:ADSX), though its subsidiary VeriChip Corporation, announced today that the U.S. Patent and Trademark Office has granted VeriChip Corp. a patent for its portable RFID asset location system. The patent, No. # 7,116,230, combines RFID tagging technology with a portable receiver to track the location of assets within a fixed setting, such as a building or warehouse. Rather than relying on a network of fixed receivers, the asset location system utilizes portable receivers to collect RFID messages, which the system uses to identify the unique ID of the asset as well as its room location. Daniel A. Gunther, President of VeriChip Corporation commented, "This patent is an extension of our proven RFID-based asset tracking technology. The portability of the receiver is a unique feature that we believe could have many applications in industrial, warehouse and healthcare settings. By not requiring the installation of numerous fixed receivers throughout a facility, such a system could substantially lower the initial cost of implementing RFID technology." 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). 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 systems for local-area location and identification purposes. VeriChip recently began to market its VeriMed(TM) Patient Identification System for rapidly and accurately identifying people who arrive in an emergency room and are unable to communicate. This 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. For more information on VeriChip, please call 1-800-970-2447, or email . Additional information can be found online at http://www.verichipcorp.com/. 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. Contact: Investors: Nick Laudico The Ruth Group 646-536-7030 Media: Jason Rando The Ruth Group 646-536-7025 DATASOURCE: Applied Digital CONTACT: Investors, Nick Laudico, +1-646-536-7030, , or Media, Jason Rando, +1-646-536-7025, , both of The Ruth Group, for Applied Digital Web site: http://www.verichipcorp.com/

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