Jan. 8, 2007

/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 info@verichipcorp.com. Additional information can
be found online at http://www.verichipcorp.com.