August 23 2006

DELRAY BEACH, Fla.--(BUSINESS WIRE)--Aug. 23, 2006--VeriChip Corporation, a subsidiary of Applied Digital (NASDAQ: ADSX - News), announced today the first sale of a fully integrated approximately $750,000 system for infant protection, wander prevention, staff duress and asset protection.
 
These VeriChip radio frequency (RF) locating technologies will be installed in the new, state-of-the-art Brampton Civic Hospital, in Brampton, Ontario, scheduled to open in the Fall of 2007. The project is being managed by Electro-Systems Alliance, a dealer for VeriChip's distribution partner Austco Communication Systems. Brampton Civic Hospital is owned and operated by William Osler Health Centre (www.williamoslerhc.on.ca).

The VeriChip systems will reside on the new VeriChip platform, which is designed to support multiple applications for facilities of any scale. Inter-connection to the Austco nurse call system will enable staff to receive notification remotely of all events--whether from the VeriChip systems or the nurse call system--via any text-enabled device, including PDAs and wireless phones.

Commenting on this event, Kevin McLaughlin, Chief Executive Officer of VeriChip said, "VeriChip has the potential to play a significant role in providing RFID solutions for people. Our experience in delivering RF locating applications in areas such as infant protection, wander prevention, etc.--has enabled us to develop an advanced platform supporting implementation on an enterprise basis."

"This installation represents the future of RF locating for the protection of individuals and assets," said Dean Carr, Vice President of Austco Communication Systems. "The healthcare market is demanding an all-in-one solution like this that is seamlessly integrated into other systems for security and nurse call."

For more information on VeriChip's healthcare security products, please contact 1-866-559-6275 or email infantprotectionsales@verichipcorp.com. Additional information can be found online at www.verichiphealthcare.com.

About Electro-Systems Alliance

Electro-Systems Alliance Inc, based in Mississauga, ON, is a leader in Healthcare Communications Integration. Since its inception in1998, ESA has consistently maintained its leadership position delivering first class solutions to the healthcare, corporate and transportation industries. For more information please call 905-206-9008 or email sales@ESAlliance.cc.

About AUSTCO

Australian-based Austco Communication Systems has been a world leader since 1986 in the highly specialized field of electronic communications for healthcare and secure accommodation environments. Austco designs and manufactures dedicated microprocessor based and computer based nurse call systems for the hospital, long-term care, and dementia care markets. There are over 4,200 Austco call systems installed throughout 47 countries worldwide. For more information on Austco, visit the company's website at www.austco.com.

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 which is used to rapidly and accurately identify 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 www.verichipcorp.com.

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 - News).

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:

Contact:
Investors:
CEOcast, Inc.
Dan Schustack, 212-732-4300
dschustack@ceocast.com
or
Media:
Direct Communications Group
John O. Procter, 202-772-2179
jprocter@dcgpr.com