Subject: VeriChip Infant Protection Product Now Used in One-In-Three U.S. Hospitals and Birthing Centers
Date: Fri, 15 Dec 2006 21:42:33 -0500

VeriChip Infant Protection Product Now Used in

 One-In-Three U.S. Hospitals and Birthing Centers


Over 1,100 Installations To-Date in the United States

DELRAY BEACH, Fla., Dec. 13 /PRNewswire- FirstCall/ -- Applied Digital
(Nasdaq: ADSX), through its VeriChip Corp. subsidiary, announced today that
it has passed an important milestone in the sale and use of VeriChip's
infant protection systems, with one-out-of-three Hospitals and Birthing
Centers in the United States now using systems manufactured by VeriChip.
This includes systems sold under both the Hugs and HALO brand names.
VeriChip believes that it has the largest installed base of infant
protection systems of any company in the industry. Revenues from sales of
VeriChip's infant protection systems increased by 28% during the first
three- quarters of 2006 as compared to pro forma revenue from such systems
during the comparable period in 2005.
"This important achievement is reflective of VeriChip's leadership in
RFID products for healthcare security solutions," said Daniel A. Gunther,
President of VeriChip Corp.
For more information on VeriChip's infant protection systems, please
contact 1-866-559-6275 or email infantprotectionsal es@verichipcorp. com.
Additional information can be found online at http://www.verichip healthcare. 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).
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.verichip corp.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
nlaudico@theruthgro up.com

Media:
Jason Rando
The Ruth Group
646-536-7025
jrando@theruthgroup .com