Michael Krawitz, Applied Digital's CEO, Comments on Recent Trading Activity and VeriChip Press Stories

Michael Krawitz, Chief Executive Officer of Applied Digital (NASDAQ:ADSX), a leading provider of identification and security technology, responded today to the investment community in light of recent pressure on its stock price following unbalanced and inaccurate press stories regarding VeriChip Corporation’s implantable microchip. Michael Krawitz, Chief Executive Officer of Applied Digital, commented, "One of Applied Digital’s strengths is that it has in its family an array of top-quality offerings. While we fully stand behind VeriChip as it faces the recent unbalanced press reports on its implantable microchip, we also note that revenue from VeriChip’s implantable product currently makes up less than 1% of our total revenue. The recent trading activity is particularly unfortunate in light of the minimal piece of our current revenue and in light of the fact that the source for the article, according to published reports, believes that if RFID technology is not stopped, we will be ‘Tormented With Fire And Brimstone In The Sight Of The Holy Angels.’ (Sui, Daniel citing Katherine Albrecht, GEOWorld Magazine. Sept. 1, 2006). That sort of bias was, unfortunately, not clear from the article. But we are confident that more balanced information will come out over time. "We remain confident in VeriChip’s business prospects. We firmly believe that implantable microchips will help those with chronic illnesses and will make our investment in VeriChip more valuable for us. But we also have a balanced perspective that recognizes our other growth drivers and sources of value.” 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 majority positions in Digital Angel Corporation (AMEX:DOC) and VeriChip Corporation (NASDAQ:CHIP). 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.