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Chief Information Officer of Harvard Medical School Recieves VeriChip
[January 21, 2005]

Chief Information Officer of Harvard Medical School Recieves VeriChip

DELRAY BEACH, Fla. --(Business Wire)-- Jan. 21, 2005 -- VeriChip Corporation, a wholly-owned subsidiary of Applied Digital (NASDAQ: ADSX), a provider of Security Through Innovation(TM), announced today that John D. Halamka, MD, MS, Chief Information Officer of Harvard Medical School, was implanted with a VeriChip(TM) in December 2004 and began an assessment of the technology. Prior to making a recommendation to a patient, Dr. Halamka wished to undergo the VeriChip "experience" so that, with his extensive clinical and information technology experience, he could make an assessment from all dimensions.

Dr. Halamka reported, "The insertion procedure was done in an outpatient setting in 15 minutes. There was no residual pain, scar, or even a palpable chip." Following his "chipping" Dr. Halamka stated that he climbed several mountains including Mount Washington in harsh environments (-20 degrees F and 6000 altitude) without any restrictions whatsoever. He also reported that the reader is robust, accurately reading his ID number 100% of the time up to 5 inches from his insertion site.

Dr. Halamka stated, "The three applications that I envision for the technology are identifying the non-responsive patient, reducing medical error by using RFID to positively identify the patient, nurse and medications during drug administration and verifying the right medications are being given to the right patient."

Commenting on Dr. Halamka's observations, Dr. Richard Seelig, Vice President of Medical Applications for VeriChip Corporation stated, "We are extremely honored that Dr. Halamka took it upon himself to independently evaluate the VeriChip technology and to evaluate its ability to improve patient care. As key medical decision makers, such as Harvard Medical School faculty, become familiar with the VeriChip System, guidance will be provided in the improvement of patient identification and secure access to healthcare information."

About VeriChip: VeriChip Corporation is a wholly owned subsidiary of Applied Digital. The VeriChip product is a sub dermal RFID micro transponder that can be used in a variety of security, financial, emergency identification and healthcare applications. About the size of a grain of rice, each VeriChip device contains a unique verification number that is captured by briefly passing a proprietary scanner over the VeriChip. In October 2004, the U.S. Food and Drug Administration (FDA) cleared VeriChip for medical applications in the United States. VeriChip is not an FDA-regulated device with regard to its security, financial, personal identification/safety applications and is MRI compatible.

About Applied Digital

Applied Digital develops innovative security products for consumer, commercial, and government sectors worldwide. The Company's unique and often proprietary products provide security 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 of Security Through Innovation. Applied Digital is the owner of a majority position in Digital Angel Corporation For more information, visit the company's website at

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.

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